WASHINGTON, July 2 (Reuters) - The Biden administration
has revoked eight licenses this year that had allowed some
companies to ship goods to Chinese telecoms equipment giant
Huawei, according to a document seen by Reuters, as it seeks to
pressure the resurgent company.
The Commerce Department, which oversees U.S. export policy,
said in May it had revoked "certain" licenses, as first reported
by Reuters, but did not specify the name or number of suppliers
that were impacted. Licenses for Qualcomm ( QCOM ) and Intel ( INTC )
were among those revoked, Reuters reported at the time.
"Since the beginning of 2024, (the Commerce Department) has
revoked eight additional licenses involving Huawei," the agency
said in the document, prepared in response to an inquiry by
Republican Congressman Michael McCaul.
Huawei did not immediately respond to a request for
comment. Qualcomm ( QCOM ) and Intel ( INTC ) did not immediately respond to
requests for comment outside of business hours.
The details shed new light on measures the Biden
administration is taking to thwart Huawei, as the company has
started to rebound despite Washington's efforts to cripple it on
national security grounds. Huawei has denied it is a security
risk.
It also comes amid pressure from Republican China hardliners
in Congress to hammer the company, which shocked industry last
August with a new phone powered by a sophisticated chip
manufactured by Chinese chipmaker SMIC despite U.S.
export restrictions on both companies.
The phone helped Huawei smartphone sales spike 64% year on
year in the first six weeks of 2024, according to research firm
Counterpoint. Its smart car component business has also
contributed to Huawei's resurgence, with the company notching
its fastest revenue growth in four years in 2023.
Huawei was placed on a U.S. trade restriction list in 2019
amid fears it could spy on Americans. Being added to the list
means the company's suppliers have to seek a special,
difficult-to-obtain license before shipping.
But Huawei suppliers have received licenses worth billions
of dollars to sell Huawei goods and technology, thanks to a
policy introduced by the Trump administration that allowed a
much broader swathe of items to flow to the firm than is typical
for an entity-listed company.
According to the document, set to be sent to McCaul on
Tuesday, license approvals for Huawei include "exercise
equipment and office furniture and low-technology components for
consumer mass-market items, such as touchpad and touchscreen
sensors for tablets," which are widely available in China from
Chinese and foreign sources, Commerce said.
The summary also states that from 2018 to 2023, the agency
approved $335 billion worth of licenses out of a total $880
billion applications seeking permission to sell to Chinese
parties on the entity list. Of those approvals, $222 billion
worth came in 2021, Biden's first year in office, out of $560
billion in applications received that year, the agency added.