Biden administration adds new limits on Huawei’s suppliers

The Biden administration this week amended licenses for companies to sell to China’s Huawei Technologies Co Ltd, further restricting companies from supplying items that can be used with 5G devices, sources said.

The changes could disrupt existing contracts with Huawei that were agreed upon under previous licenses that have now been changed, two of the sources said.

The actions show the Biden administration is reinforcing a hard line on exports to Huawei, the telecommunications equipment maker placed on the trade blacklist over US national security concerns.

A US Commerce Department spokeswoman declined to comment, saying the licensing information is subject to confidentiality. A Huawei spokeswoman declined to comment.

The initial export licenses were granted by the Commerce Department after the company was placed on the department’s trade blacklist in 2019. This week’s new conditions make older licenses more consistent with tougher licensing policies implemented in the waning days of the Trump administration.

Between 2019 and 2020, the administration approved licenses for companies to sell $87 billion worth of goods and technology to Huawei, the document said. Licenses are generally good for 4 years.

While new restrictions on those licenses hurt some suppliers, one source noted, they also level the playing field between companies, since some received licenses under less restrictive policies.

ARR