The Biden administration imposed new restrictions on Huawei's suppliers
The Biden administration imposed new restrictions on Huawei's suppliers

Reuters said that the Biden administration this week changed the company's license to sell the company to the Chinese company Huawei, further restricting the company's range of items that can be used on 5G devices.

These changes may break existing contracts with Huawei that were made based on the previously changed licenses.

These measures show that the Biden administration is escalating its hard-line stance on exports to Huawei, a telecommunications equipment manufacturer that has been blacklisted for US national security reasons.

After adding the company to the trade blacklist of the Ministry of Commerce in 2019, the Ministry of Commerce issued a preliminary export license.

This week's new terms bring the old license more in line with the stricter licensing guidelines the Trump administration has implemented in recent days.

According to US Commerce Department records, in January the Trump administration decided to reject 116 licenses with a total face value of $ 119 billion and approve four licenses only worth $ 20 million.

Most of the rejected devices fall into three categories: storage, phones and other devices, and network applications.

Between 2019 and 2020, the US government agreed to license the company to sell $ 87 billion in goods and technology to Huawei.

The new restrictions on these licenses, while hurting some vendors, also provide a level playing field for companies, and some are permitted under less restrictive guidelines.

According to one of the revised licenses that went into effect on March 9th, these items cannot be used with or in a 5G device. This is a broad explanation that prevents the article from accessing 5G devices, even though it has nothing to do with 5G. mission.

Beginning March 8, no additional licensing changes will be allowed for the military, 5G, critical infrastructure, corporate data centers, cloud or satellite applications.

The notice also stated that the density of some elements should be less than or equal to 6 GB, in addition to other technical requirements.

Before exporting, the revised licenses state that Huawei or its customers must implement the parts control plan and provide inventory records to the US government upon request.

For reasons of national security and foreign policy, companies are placed on a commercial blacklist (known as an entity list), and sales licenses often face potential denial criteria.

But Trump's position on Huawei has been inconsistent. Huawei opened the door to more sales in search of a business bargain, but then slumped amid coronavirus tensions and increased campaign activity from Beijing to Hong Kong.

According to the January documents, there are about 300 pending applications, valued at $ 296 billion.

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