The Biden administration revoked eight licenses in 2024 that had previously allowed certain companies to supply goods to Chinese telecom giant Huawei.
This development, according to a document seen by Reuters, is part of ongoing efforts to exert pressure on the resurgent company.
(Photo : PATRICIA DE MELO MOREIRA/AFP /AFP via Getty Images) The logo of Chinese telecom giant Huawei is pictured during the Web Summit in Lisbon on November 6, 2019. -
The US Revoked 8 Licenses for Huawei in 2024
The US Department of Commerce, which oversees export policy, has confirmed the revocation of these licenses.
Initially, the department mentioned in May that "certain" licenses had been revoked but did not specify the names or numbers of the suppliers affected apart from Qualcomm and Intel.
The document, prepared in response to an inquiry by Republican Congressman Michael McCaul, states, "Since the beginning of 2024, (the Commerce Department) has revoked eight additional licenses involving Huawei."
Despite US penalties, Huawei reported substantial earnings growth last year. The company's net profit surged to 87 billion yuan ($12 billion), driven by strong sales and advancements in its cloud and digital divisions.
Additionally, Counterpoint data suggests that Huawei's smartphone sales also spiked by 64% year-on-year in the first six weeks of 2024.
This resurgence is partly attributed to the success of its controversial Mate 60 Pro 5G smartphone, which has helped the company regain dominance in China's smartphone market.
We also previously reported that Huawei is nearing one billion active consumer devices. Huawei now boasts around 900 million devices equipped with its in-house HarmonyOS, an already substantial increase from just a few months ago.
Additionally, Huawei's smart car component business has contributed to the fastest revenue growth the company has seen in four years, reaching 704.2 billion yuan ($97.4 billion) in sales last year, Reuters reports.
National Security Concerns
(Photo : DAMIEN MEYER/AFP via Getty Images)
Computer scientists at Graz University of Technology have uncovered a new security vulnerability that could allow spying on internet users.
Huawei was blacklisted in 2019 over concerns that it could be used for espionage and allegations of stealing trade secrets. This designation requires the company's suppliers to obtain special licenses to ship goods to Huawei.
Historically, suppliers have managed to secure billions of dollars' worth of licenses to continue their dealings with Huawei, thanks to a policy from the Trump administration that allowed a broader range of items to be exported than typically permitted for companies on the entity list.
The recent document reveals that from 2018 to 2023, the Commerce Department approved $335 billion worth of licenses out of $880 billion in applications seeking permission to sell to Chinese parties on the entity list.
In Biden's first year in office, 2021, the department has been more strict, approving $222 billion worth of licenses out of $560 billion in applications received.
This move comes amid heightened pressure from Republican hardliners in Congress who advocate for stringent measures against Huawei.
