U.S. officials have approved licenses worth
hundreds of millions of dollars for China's blacklisted telecom company Huawei
to buy chips for its growing auto component business, according to sources.
U.S. officials have approved license applications worth hundreds of millions of
dollars for China's blacklisted telecom company Huawei to buy chips for its
growing auto component business, two people familiar with the matter said.
Huawei, the world's largest
telecommunications equipment maker, has been hobbled by trade restrictions
imposed by the Trump administration on the sale of chips and other components
used in its network gear and smartphones businesses.
The Biden administration has
been reinforcing the hard line on exports to Huawei, denying licenses to sell
chips to Huawei for use in or with 5g devices. But in recent weeks and months,
people familiar with the application process told Reuters the U.S. has granted
licenses authorising suppliers to sell chips to Huawei for such vehicle
components as video screens and sensors.
Citing threats to U.S. national
security and foreign policy interests, the U.S. has gone to great lengths to
slow the growth of Huawei's key communications-related business. After placing
Huawei on a U.S. Commerce Department trade blacklist in 2019, which banned
sales of U.S. goods and technology to the company without special licenses, the
U.S. last year ratcheted
up restrictions to limit the sale of chips made abroad with U.S. equipment. It also campaigned to get allies
to exclude Huawei from their 5G networks over spying concerns. Huawei has
denied the allegations.
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Source: The Hindu