United States officials have green lit the licenses for China’s Huawei to buy hundred of millions of dollars worth of computer chips for its auto business, a Reuters report revealed this week.
The report mentions two unnamed sources.
“Huawei, the world’s top telecommunications equipment manufacturer, has been restricted with trade rules from the Trump White House on the sale of CPUs and other parts used in its networking gear and smartphones. The Biden White House has been reinforcing this hard line on exports to Huawei, denying licenses to sell chips to Huawei for their 5g devices.”
“But people close to the application process report that the United State has now granted licenses authorizing suppliers to give chips to Huawei for vehicle components like sensors and video screens. The approvals come as Huawei changes its business toward products that are less susceptible to trade bans.”
Not everyone is a fan. GOP Senator Tom Cotton, who has been very critical of Huawei, saying in a comment, “It is unacceptable for the Biden White House to ease the pressure against Chinese spy companies such as Huawei.”
Critics of Biden’s kowtow to China say this move will weaken efforts to get America’s allies around the world to ban Huawei products from crucial information infrastructure.
Just over a year ago, the United States government announced fresh sanctions against Huawei that tried to block its semiconductor supply.
Huawei is the number one mobile phone manufacturer in China. Beijing thinks of the company as a “national champion” and it is central to the nation’s “Made in China 2025” scheme to take over high-tech manufacturing. As one of China’s global brands, it has turned into something of a symbol for the country around the world. The company also has a central part in China’s push to dominate 5G technology.
Ren Zhengfei, the CEO and founder of Huawei, was a high-ranking intel. officer with the PLA, according to United States officials. Two years ago, a federal jury indicted Ren’s daughter—who was Huawei’s CFO—Meng Wanzhou, charging her with fraud and breaking Iran sanctions. She was arrested in Canada, and is still there under house arrest while combating her extradition to New York.
Author: Scott Dowdy