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Biden revoked 8 licenses for China's Huawei in 2024, document shows
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Biden revoked 8 licenses for China's Huawei in 2024, document shows
Jul 2, 2024 7:37 AM

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.

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