The U.S. government has imposed new licensing restrictions to some Huawei suppliers regarding technology components meant “for use in or with 5G devices,” a Bloomberg report says. The new 5G ban is already in effect.
The new ban follows previously issued tighter export controls by the Trump administration in 2020. According to the report, the new rules level the playing field among licensees, clearing the once deemed confusing rules. Before, some suppliers had been granted licenses that reportedly allowed them to continue shipping items that Huawei could use in its 5G devices.
The U.S. government’s new export control rules are now transparent, reflecting its stand on the shipping of specific technology components meant for use in Huawei 5G devices, like semiconductors, antennas, and batteries.
Last year, Qualcomm was licensed to supply Huawei with 4G mobile chips, although the company makes 5G-capable silicon, too.
Since being added to the Entity List, suppliers to the Chinese telecommunications-equipment giant must apply for a license to supply it with tech components with American technology.
Huawei’s troubles began in 2019, when the Chinese company, together with dozens of its affiliates, were added to the Entity List. The company has been deemed as a national-security threat by the U.S. government.
New controls from the newly-inaugurated Biden administration signal a cohesive approach to previously implemented restrictions from the Trump government and align with officials’ pledge to be tough on China.
Joe Biden and his Chinese counterpart Xi Jinping spoke last month over the phone. And U.S. Secretary of State and National Security Advisor plan to meet their Chinese counterparts next week for the first time.
The Biden administration has promised to review U.S policies first, including the ensuing ban on Chinese telecommunications giant Huawei, before deciding the way forward.
Consequently, that could go in three ways – export controls could be lifted, maintained, or deepened. Till then, the future of Huawei in the U.S. remains to be seen.