Huawei’s Export License Revoked: US Continues to Pressure Chinese Telecom Giant Amidst Ongoing Sanctions

The US Department of Commerce has recently announced that export licenses for companies like Qualcomm and Intel to supply Huawei have been revoked, dealing another significant blow to the Chinese telecommunications company. This action intensifies the pressure on Huawei, which has been at the center of a technological rivalry between Beijing and Washington over concerns of potential Chinese espionage.

Five years after the initial announcement that Huawei would be banned from the Western smartphone market, this decision is a clear indication of the US government’s determination to protect national security and foreign policy interests. The ongoing restrictions on Huawei’s access to US technology and components continue to impact the company’s operations and future prospects in the global market.

The Commerce Department stated that they continuously evaluate their controls to ensure national security and foreign policy interests are protected, considering the changing threat landscape and technology environment. Sanctions imposed on Huawei since 2019 have already limited its access to US-made software and components, requiring suppliers to obtain a license before conducting business with the company.

In response to the export license revocation, the Chinese Ministry of Commerce expressed strong opposition, vowing to take all necessary measures to defend the rights and interests of Chinese companies. A complaint filed by Marco Rubio and Elise Stefanik highlighted concerns that active licenses allowed Huawei to collaborate with Intel and Qualcomm to sustain its PC and smartphone segments. They criticized Huawei’s access to US technology to develop new products and noted the company’s resurgence despite facing significant challenges in the past.

Qualcomm disclosed in recent financial results that they hold export licenses permitting the sale of 4G and other integrated circuit products to Huawei, although they do not anticipate generating revenue from Huawei products beyond the current year. This news indicates that even though some restrictions have been lifted, it is unlikely for Huawei’s sales will significantly improve in near future due to ongoing limitations on its access