The White House is exploring the possibility of revoking export licenses from US suppliers to sell technology to China’s Huawei. This measure may be taken as part of the next round of tightening trade policy for reasons of national security. This was reported The Wall Street Journal (WSJ) citing sources.
As the WSJ notes, the tightening of trade policy towards China comes once morest the backdrop of another increase in tensions in relations between countries due to downed Chinese balloons and information that China may provide military assistance to Russia in the conduct of hostilities in Ukraine.
“The policy that allowed exports to Huawei despite the company’s listing is being phased out,” a source told the WSJ. According to him, the White House expects such measures to “try to complete the collapse” of Huawei.
According to WSJ experts, the revocation of already issued licenses may negatively affect American chip manufacturers. Such companies expect to lose income that allows them to finance internal research and development.
In 2019, the United States made Huawei made a list of companies subject to export controls. The Chinese company lost access to advanced American technologies, including those related to the creation of 5G networks, but might acquire older technologies under a special license.
The US administration explained the sanctions once morest the company as a threat to national security. The US government believes that China can use Huawei technology for espionage. In January, the FT wrote that the White House would completely refrain from issuing licenses to U.S. suppliers to export technology to Huawei.
