US President Joe Biden’s administration is considering cutting off Huawei Technologies Co (華為) from all of its US suppliers, including Intel Corp and Qualcomm Inc, as Washington intensifies a crackdown on the Chinese technology sector.
Sales from US firms to Huawei have been limited for four years since former US president Donald Trump added the Shenzhen, China-based company to the US “entity list” out of national security concerns. US suppliers have since required government approval to sell to the telecom equipment giant.
Now, some officials in the Biden administration are advocating a ban on all sales to Huawei — which has long been suspected of having ties to the Beijing government and Chinese military — as Washington debates whether and how to adjust its licensing policy, people familiar with the matter said.
Photo: Bloomberg
The people asked not to be identified because a decision has not been made public.
Tensions with China have been rising throughout Biden’s presidency, and he is under pressure from Republicans controlling the US House of Representatives to continue squeezing Beijing, particularly to limit the country’s technological advances.
Huawei was once one of the world’s largest buyers of electronic components and a hugely important part of the supply chain because of its position in the handset and networking equipment industries.
Trump’s ban on certain sales crippled the Chinese company, while wiping out huge amounts of revenue for US suppliers such as Broadcom Inc, but the US Department of Commerce continued to allow some other products to be supplied to Huawei.
The company remains a US$100 billion behemoth that is spearheading the expansion of the world’s largest 5G network at home, while aiding the construction of critical broadband from Africa to the Middle East.
In December last year, the firm said that it was “business as usual” after successfully weathering US tech sanctions.
Under the new policy some officials advocate, all license requests to supply the company would be denied.
Meanwhile, most current applications for new licenses are languishing in a stalled approval process, the people said, creating a de facto halt.
The longer-term effect on Huawei from that action is uncertain. It still derives enormous revenue from local wireless carriers, such as China Mobile Ltd (中國移動), and state enterprises that rely on Huawei to build local-level and corporate networks.
China operates more than 2 million 5G base stations, or more than 60 percent of the world’s total, industry officials say.
Huawei has also been stockpiling foreign components such as chips and sourcing or researching alternatives to US circuitry.
Representatives for the company did not immediately respond to requests for comment.
Intel and Advanced Micro Devices Inc provide Huawei with the processors it uses in its Mate range of laptops, while Qualcomm sells Huawei processors and modems that are the core components of its diminished range of smartphones.
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