Trump administration restricts Intels supply to Chinese firm Huawei

Trump administration restricts Intels supply to Chinese firm Huawei

by Nandita Bhardwaj

The Trump administration has reportedly notified suppliers for Chinas major consumer electronics firm, Huawei, including leading technology company Intel, that it has decided to revoke certain licenses to sell products to the Chinese company and would be rejecting several other applications to supply the telecommunications company. The notices are a part of ongoing U.S. efforts against China during the final days of Trump’s administration.  

Apparently, this is expected to be the last action against Huawei Technologies under Republican President Donald Trump and is the latest in continuing efforts towards weakening the largest telecommunications equipment maker across the globe which, according to the departing administration, is a threat to U.S. national security as well as foreign policy interests.

In this regard, the Semiconductor Industry Association has stated that the Commerce Department had issued intents to deny numerous license requests of exports to Huawei and revocation of at least one license issued earlier. However, as per the sources of knowledge, there was more than one revocation. According to a source, eight licenses were revoked from four companies.

The Semiconductor Industry Association also stated that the actions covered a wide range of products across the semiconductor industry and the companies have been asked if they had received notices. It further stated that companies had been waiting for licensing decisions from several months and with less than a week left in the current administration, managing the denials was difficult.

It has been reported that companies that have received the notice of “intent to deny” need to respond within 20 days while the Commerce Department has 45 days to advise these companies regarding any change in decision otherwise it would become final. Companies in that case would have another 45 days to appeal.

For the record, in May 2019, The U.S. had placed Huawei on the Commerce Department’s entity list, which restricted the suppliers from selling the country’s goods and technology to the Chinese company. However, some sales were allowed, and others were prohibited while the United States increased the restrictions against the company which included expanding U.S. authority to necessitate licenses for the sales of semiconductors developed abroad using American technology.

Source credit: https://www.reuters.com/article/usa-huawei-tech/exclusive-trump-admin-slams-chinas-huawei-halting-shipments-from-intel-others-sources-idUSL1N2JS0HT

Nandita Bhardwaj

Having a marketing management post graduate degree under her belt, Nandita spent considerable time working in the field of recruitment. However, her real interest lay in playing with words and soon enough, she commenced her career in the field of content creation. Currently, she authors insightfuRead more...