The Biden administration has taken a tough stand against the Chinese technology giant Huawei by suspending licences granted to American firms that allowed them to export most items to the company. This move comes in the wake of an increasingly strained relationship between the USA and China, and it places further restrictions on US technology exports to China.
The US government has been clear in its stance against Huawei, and this move is the latest in a series of measures taken to restrict the company’s access to US technology. The Trump administration had already taken steps to limit Huawei’s access to US technology by placing it on the Entity List and denying it the ability to obtain US components.
The new licensing suspension will have a significant impact on Huawei, as it will prevent the company from obtaining important US components and technology. It is likely that this move will lead to a further deterioration of the already strained relationship between the two countries, and could potentially lead to even more restrictions being placed on US exports to China.
The Biden administration is requesting that companies that had previously been granted a license to export to Huawei submit a request to the US Commerce Department to have the license revoked. Companies that fail to do so could be subject to legal action.
This move is likely to have a significant impact on Huawei’s ability to produce and market its products, as US components are a vital part of the company’s business. This could have a detrimental effect on Huawei’s bottom line, and it is likely that the company will have to find alternative components or technology to remain competitive in the domestic US market.
The USA administration has made it clear that they are willing to take a tough stance against China, and this move is the latest in a long line of measures that have been taken to restrict the country’s access to US technology. In the coming time, it will be great and interesting to see if the US government takes further steps to restrict Huawei’s access to US components, or if this move is the beginning of a more aggressive stance against the company.