China has expressed “grave concern” over allegations that the US is considering further limiting the sale of American technology to Huawei, a company that American authorities have long singled out as a threat to national security due to its alleged backing of Beijing’s espionage activities.
The U.S. Department of Commerce has warned American companies that it would no longer grant licenses for technological exports to Huawei, as first reported by the Financial Times. As a result, the Shenzen-based company will no longer have access to the raw materials it requires to produce its goods.
Inquiries from VOA seeking confirmation of the stories were not answered by the White House or the Department of Commerce. The move, however, maybe the newest approach in the Biden administration’s geoeconomics plan, according to experts, who note that the administration is under growing Republican pressure to outcompete China.
Under the Trump administration, there was a crackdown on Chinese enterprises, adding Huawei to a list of prohibited exports in 2019, but making an exception for some American companies, such as Qualcomm and Intel, to offer non-5G technology licensing.
President Joe Biden has adopted an even more combative approach than his predecessor, Donald Trump, since assuming office in 2021. According to Sam Howell, a researcher in quantum information science at the Center for a New American Security’s Technology and National Security program, the Biden administration now seems to be moving toward a complete prohibition on all tech exports to Huawei.
According to what she told VOA, “these new limits will include products below the 5G level.” “Therefore, 4G devices, Wi-Fi 6 and [Wi-Fi] 7, AI, HPC, and cloud capabilities as well.”
If the Commerce Department implements the restriction, American businesses whose earnings will be adversely affected are likely to protest, according to Howell. Currently, Huawei-made laptops and phones still employ CPUs from Intel and Qualcomm.
Beijing and Huawei have refuted claims that they pose a threat to the security of other nations. Speaking on behalf of the foreign ministry, Mao Ning charged that Washington had “overstretched the notion of national security and abused state power” to intimidate Chinese rivals.
The United States is currently taking action against Huawei as part of an endeavour to outcompete China in the field of cutting-edge technology.
In an effort to maintain dominance, particularly with regard to the most cutting-edge chips, Biden set broad limitations on Chinese companies’ access to innovative semiconductors and chipmaking machinery in October. His administration is enlisting allies to support the initiative, including the Netherlands, Japan, South Korea, and Taiwan, which are home to top businesses that are essential to the supply chain for the sector.