In 2019, the US put Huawei on a trade blacklist. This meant that the US company would need a special license to continue trading. AMD, Intel, Qualcomm and others were granted licenses, the latter being allowed to ship 4G-only chipsets. (seen in recent Huawei P and Mate series models).
Permissions continued to be granted early in President Biden’s administration, but insiders now say the US is looking to expand the list of prohibited items.
New additions are said to include 4G technology, Wi-Fi 6 and 7, technologies related to artificial intelligence, high performance and cloud computing. New licenses for 4G items have already been rejected, according to one insider.
Regarding old licenses, one technical expert said the Department of Commerce is considering revoking all old licenses. And even if you don’t explicitly do so, those licenses will eventually expire.
Back in October, Biden introduced new export controls on equipment used to make semiconductors. This regulation applies to technologies at nodes higher than 14nm, and in some cases he also applies to 16nm. Japan and the Netherlands have joined the US effort, claiming to ban their companies from exporting equipment to China. bloomberg Reported a few days ago. These restrictions are intended to curb the growth of China’s domestic semiconductor industry. Huawei has already confirmed that Kirin won’t be back, at least this year, because it can’t find a US-based foundry that doesn’t use technology.
Huawei was best known for its smartphones and networking gear, but the company had to adapt. For example, businesses that may soon become subject to US sanctions are moving to the cloud for their computing.
Huawei saw a sharp drop in revenue in 2021 when trade restrictions began to take effect (revenue fell by a third). However, it has remained relatively stable since then, and in December 2022, he made $91.53 billion in earnings overall.
The U.S. Department of Commerce did not comment on details of future trade export bans.
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