U.S. Sanctions vs Huawei Hope
Huawei, a leading Chinese smartphone manufacturer, is once again facing the prospect of sanctions from the United States government. The Biden administration is reportedly considering a proposal to cut off all ties between U.S. suppliers and Huawei, including well-known companies such as Intel and Qualcomm, and ban them from supplying any products to the Chinese company. This move, which is still in the early stages of discussion, would mean all license applications from U.S. suppliers to supply Huawei would be denied.
In May 2019, Huawei was added to the list of entities, effectively limiting its access to U.S. technology and supplies. In response, Huawei has been working to reduce its dependence on U.S. suppliers and develop its own ways. However, despite its efforts, the recent news of potential sanctions has once again thrown the company into uncertainty.
The U.S. government has reportedly stopped issuing licenses to U.S. companies to supply products exported to Huawei, including items below the 5G level such as 4G, Wi-Fi 6 and 7, artificial intelligence, high-performance computing, and cloud items. This has led to concerns that the upcoming launches of the P60 series and Mate X3 in the first half of 2023 could be impacted.
However, there is some hope for Huawei as Qualcomm, a leading supplier of processors for the company has announced that its current licenses to export 4G, Wi-Fi, and other chips to Huawei will not be affected by reports of the U.S. Department of Commerce stopping the issuance of export licenses.
Alex Rogers, Qualcomm’s president of technology licensing and global affairs, confirmed on an earnings call with investors that the licenses were issued after Congress determined that they do not affect national security issues and will continue for some number of years.
In conclusion, while Huawei is once again facing the threat of sanctions from the United States government, Qualcomm’s statement provides some hope that the company will continue to receive the supplies it needs to maintain its operations and continue its growth. The outcome of the current discussions on sanctions will have a significant impact on the future of Huawei, and the tech industry as a whole.
