Saturday, May 25th, 2024

US stops computer chip sales to China-based Huawei Technologies

The US Commerce Department on Tuesday restricted the sale of US technology to Huawei Technologies, China’s leading high-tech firm, and some allowances for US chip sales amid renewed scrutiny of the company in Washington, The Washington Post reported. Cancelled.

“We are not commenting on any specific licenses, but we can confirm that we have revoked some licenses for exports to Huawei,” the department said in a statement.

Additionally, the new orders will prevent US-based manufacturers such as Intel and Qualcomm from selling chips for computing devices to Huawei, The Washington Post reported, citing three people familiar with the matter.

Huawei is on the radar of other US federal agencies like the Federal Communications Commission, moreover, the Biden administration is pushing to establish more companies in the US that can compete with Huawei technologies.

The China-based manufacturer has been at the center of the US-China rivalry as it is China’s most efficient technology company. In addition, the company also has significant Internet and phone sales in rural parts of the US. These networks are of interest to intelligence agencies because of the data they hold.

The Washington Post reported that American experts on the matter fear that these devices may be more vulnerable to infiltration by Chinese intelligence agencies. And the report further claims that, despite years of US efforts to halt its progress, Huawei was still the world’s No. 1 company in 2023 in terms of the number of patent applications filed. It is still the world’s top seller of the pipes that make up Internet and phone networks, and remains a major player in consumer gadgets such as smartphones.

Separately on Tuesday, the National Telecommunications and Information Administration (NTIA) announced a US$420 million grant for companies in the United States and allied countries to build phone network gear that can compete against Huawei. According to the report, the NTIA includes a requirement for grant recipients to tie up with a network operator to ensure that their products can secure a major buyer when they go to market.

The initial restrictions and bans on Huawei were imposed under the Trump administration, as US vendors were allowed to make sales, which at the time forced the company to switch to China-based manufacturers to meet its demand. However, laws enacted during the Trump administration allowed US companies to sell Huawei components that were deemed less sensitive.

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