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- The White House is revoking the licenses of companies doing business with Chinese tech giant Huawei, Reuters reported on Sunday.
- Huawei has long been a target of President Donald Trump’s administration, which views the company as Chinese government spies.
- Huawei has repeatedly denied its intention to use its networks to spy.
- Visit the Business Insider homepage for more stories.
President Donald Trump’s administration is taking what will likely be its last blow to weaken Huawei by revoking the licenses of companies that supply materials to the Chinese tech giant, according to a new report from Reuters.
Companies such as Intel and Japanese chipmaker Kioxia have been told they will no longer be able to sell to Huawei, Reuters reported, citing people familiar with the matter.
The administration plans to revoke several dozen additional licenses, Reuters said.
The Trump administration has long viewed Huawei’s dominance in the telecommunications world as a threat to national security.
In May 2019, Trump declared a national emergency in the face of the company’s growing encroachment on the U.S. market.
As a result, the company was placed on an “entity list,” which meant that US companies could not sell or transfer technology to Huawei without a license issued by the Bureau of Industry and Security Entity List.
In a statement to CNBC at the time, Huawei said, “Preventing Huawei from doing business in the United States will not make the United States safer or stronger; on the contrary, it will only serve to limit the states. United with inferior but more expensive alternatives The United States is lagging behind in the rollout of 5G and is ultimately hurting the interests of American businesses and consumers. “
The Trump campaign continued its attacks on Huawei, with the president telling “Fox and Friends” in August 2020, “We don’t want their equipment in the United States because they are spying on us. And any country that uses it, we’re not going to do anything in terms of sharing information. “
“Huawei? I call them Spy-Wei. It’s a disaster,” Trump continued.
Read more: Privacy and antitrust experts described Google’s $ 2.1 billion Fitbit deal as grim: ‘Crazy that this was allowed’
On August 17, the Commerce Department announced that the administration had further restricted tech companies from selling U.S.-made technology to Huawei – or one of its subsidiaries – without acquiring a special license.
Commerce Secretary Wilbur Ross said at the time that the decision was taken to prevent Huawei from using American technology to “fulfill the objectives of the Chinese Communist Party.”
“While we have limited its access to American technology, Huawei and its affiliates have worked through third parties to exploit American technology in a way that undermines US national security and foreign policy interests,” he said. he continued.
The restriction prevented Huawei from gaining access to chips it had designed but which were made by other companies.
The UK agreed to allow Huawei to help build its 5G system in 2019, but reversed the course in July 2020 due to security concerns regarding China. The UK government has banned the purchase of new Huawei 5G equipment after December 31, 2020, and has committed to removing all Huawei equipment from 5G networks by the end of 2027.
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