White House considering export restrictions on China-affiliated Huawei [ad_1]

FILE - In this July 30, 2019, file photo a woman walks by a Huawei retail store in Beijing. Chinese tech giant Huawei has accused U.S. authorities of trying to coerce employees to gather information on the company and of trying to break into its information systems. The company, the target of U.S. accusations that it is a security threat, said Wednesday, Sept. 4, that American officials were using "unscrupulous means" to disrupt its business.(Online News 72h Photo/Andy Wong, File) Andy Wong/Online News 72h

White House considering export restrictions on China-affiliated Huawei

Christopher Hutton

February 28, 10:50 AM February 28, 10:52 AM

The White House is considering an end to export licenses related to Huawei, making it so the Chinese company will have a harder time constructing and selling its mobile devices.

Revoking the licenses would end the company's access to United States-produced chips and limit sellers' ability to send the products overseas. This decision could affect contracts with major chipmakers such as Qualcomm and Intel, whose chips are used in Huawei devices. This consideration arises as the Commerce Department seeks to put pressure on China by restricting access to chips and semiconductors.

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"The policy that had allowed exports to Huawei, notwithstanding the entity listing, is being wound down. The White House is now telling Commerce, 'Cut off the 4G sales, the time has come to do more pain to Huawei, to try to finish their demise,'" a former senior security official familiar with the decisions told the Wall Street Journal.

Huawei has been the target of scrutiny by both the Biden and Trump administrations over allegations of assisting in espionage. The Federal Communications Commission banned the sale and importation of Huawei-made telecommunication equipment in November over national security concerns.

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Huawei is one of the largest telecommunication companies globally but has come under intense examination by Western countries, such as the U.S. and the United Kingdom, because of ties to the Chinese Communist Party.

The Commerce Department has implemented multiple export controls to restrict Chinese access to U.S. chips. It has also asked Japan and Netherlands to restrict such trade.

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