Eight Huawei Export Licenses Revoked in Latest U.S. Crackdown on Chinese Tech

The Biden administration has revoked eight licenses this year that previously allowed some companies to ship goods to Chinese telecom giant Huawei. This move, as reported by Reuters, is part of an effort to exert pressure on the resurgent company. The Commerce Department, which oversees U.S. export policy, had mentioned in May that it revoked certain licenses but did not specify details. Among the revoked licenses were those for Qualcomm and Intel.

“Since the beginning of 2024, the Commerce Department has revoked eight additional licenses involving Huawei,” the agency stated in a document prepared in response to an inquiry by Republican Congressman Michael McCaul. These licenses included approvals for items like exercise equipment, office furniture, and low-technology components for consumer mass-market items, such as touchpads and touchscreen sensors for tablets. These components are widely available in China from both Chinese and foreign sources, the Commerce Department explained.

Eight Huawei Export Licenses Revoked in Latest U.S. Crackdown on Chinese Tech

Huawei and Qualcomm did not respond to requests for comment, while Intel declined to comment. A spokesperson for the House Foreign Affairs Committee, chaired by McCaul, confirmed receiving the data and is currently reviewing it.

This move sheds new light on the Biden administration’s efforts to hinder Huawei’s progress. Despite U.S. attempts to cripple the company on national security grounds, Huawei has started to rebound. The company denies posing any security risk.

The revocation of licenses comes amid pressure from Republican China hardliners in Congress to take a tougher stance against Huawei. Last August, the company surprised the industry with a new phone powered by an advanced chip manufactured by Chinese chipmaker SMIC, despite U.S. export restrictions on both companies. This phone helped Huawei’s smartphone sales spike by 64% year-on-year in the first six weeks of 2024, according to research firm Counterpoint. Additionally, Huawei’s smart car component business has significantly contributed to its resurgence, with the company achieving its fastest revenue growth in four years in 2023.

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Huawei was placed on a U.S. trade restriction list in 2019 amid concerns that it could spy on Americans. Being on this list means that Huawei’s suppliers must seek special, difficult-to-obtain licenses before shipping products to the company. However, Huawei’s suppliers have received licenses worth billions of dollars to sell goods and technology to Huawei. This policy, introduced by the Trump administration, allowed a broader range of items to be exported to the firm than is typical for an entity-listed company.

The Commerce Department’s summary also reveals that from 2018 to 2023, the agency approved $335 billion worth of licenses out of a total of $880 billion in applications seeking permission to sell to Chinese parties on the entity list. In 2021, Biden’s first year in office, the agency approved $222 billion worth of licenses out of $560 billion in applications received that year. This information highlights the significant economic impact and the complexity of balancing national security concerns with trade relations.