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China 'seriously concerned' about report US has halted approvals of exports to Huawei

China 'seriously concerned' about report US has halted approvals of exports to Huawei

FILE PHOTO: A person stands by a sign of Huawei during World Artificial Intelligence Conference, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, September 1, 2022. REUTERS/Aly Song/File Photo

BEIJING: China is seriously concerned about reports that the United States has stopped approving licences for US companies to export items to tech giant Huawei, a foreign ministry spokesperson said on Tuesday (Jan 31).

"We are closely following relevant developments," Mao Ning told a regular news briefing in response to a query on the export curbs.

According to three people familiar with the matter, the Biden administration has stopped approving licences for US companies to export most items to Huawei.

The Chinese company has faced US export restrictions around items for 5G and other technologies for several years, but officials in the US Department of Commerce have granted licences for some American firms to sell certain goods and technologies to the company.

Qualcomm Inc in 2020 received permission to sell 4G smartphone chips to Huawei.

A Commerce Department spokesperson said officials "continually assess our policies and regulations" but do not comment on talks with specific companies. Huawei and Qualcomm declined to comment. Bloomberg and the Financial Times earlier reported the move.

Mao said that China opposes the United States abusing an overly broad notion of national security to suppress Chinese firms unreasonably.

The move "goes against the principles of the market economy and rules of international trade and finance, hurts the confidence the international community has in the US business environment and is blatant technological hegemony", she added.

One person familiar with the matter said US officials are creating a new formal policy of denial for shipping items to Huawei that would include items below the 5G level, including 4G items, Wifi 6 and 7, artificial intelligence, and high-performance computing and cloud items.

Another person said the move was expected to reflect the Biden administration's tightening of policy on Huawei over the past year. Licences for 4G chips that could not be used for 5G, which might have been approved earlier, were being denied, the person said.

Toward the end of the Trump administration and early in the Biden administration, officials had still granted licences for items specific to 4G applications.

American officials placed Huawei on a trade blacklist in 2019 restricting most US suppliers from shipping goods and technology to the company unless they were granted licences. Officials continued to tighten the controls to cut off Huawei's ability to buy or design the semiconductor chips that power most of its products.

But US officials granted licences that allowed Huawei to receive some products. For example, suppliers to Huawei got licences worth US$61 billion to sell to the telecoms equipment giant from April through November 2021.

In December, Huawei said its overall revenue was about US$91.53 billion, down only slightly from 2021 when US sanctions caused its sales to fall by nearly a third.

Source: Reuters/gs


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