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The Biden administration this week changed vendor-related licenses for Huawei, the Chinese company, further restricting companies to supplying items that can be used with 5G devices.
The changes could disrupt existing contracts with Huawei that were agreed to under previous licenses that have now changed.
The measures show that the Biden administration is strengthening its hawkish stance on exports to Huawei, a telecommunications equipment maker blacklisted for trade over U.S. national security concerns, according to Reuters.
The Ministry of Commerce granted initial export licenses after the company was included in the ministry’s commercial blacklist in 2019.
This week’s new terms make the old licenses more consistent with the more stringent licensing policies implemented in the dying days of the Trump administration.
In January, the Trump administration decided to reject 116 licenses totaling $ 119 billion in face value and approve four licenses worth just $ 20 million, according to the Commerce Department document.
Most of those rejected fall into three main categories: memory, phone and other devices, and network applications.
Between 2019 and 2020, the administration approved licenses for companies to sell $ 87 billion in goods and technology to Huawei.
While the new restrictions on these licenses hurt some vendors, they also level the playing field for businesses, with some obtaining licenses under less restrictive policies.
According to one of the revised licenses, which went into effect on March 9, the items cannot be used with or in any 5G device, a broad interpretation that prohibits the item from accessing a 5G device even if it does. has nothing to do with 5G. Functionality.
As of March 8, no further amended licenses have been authorized for use in the military, 5G, critical infrastructure, corporate data centers, or cloud or satellite applications.
The notice also states that certain items must have a density of 6 GB or less, along with other technical requirements.
Huawei suits
Before exporting, the two revised licenses state: Huawei or customers must implement the parts control plan and make inventory records available to the US government upon request.
Businesses are blacklisted for commerce, known as the Entity List, due to national security and foreign policy concerns, and licenses to sell typically face a potential level of rejection, according to the portal. Arabic for new techniques.
But Trump had an inconsistent approach to Huawei, which opened the door for more sales when he sought a trade deal, but then began to decline further as tensions over the coronavirus and Beijing’s campaign in Hong Kong increased. .
According to the January document, there were still around 300 orders worth $ 296 billion pending.
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