💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

U.S. Imposes New 5G Limits on Licenses for Some Huawei Suppliers

Published 12/03/2021, 08:29 am
Updated 12/03/2021, 08:54 am
© Reuters.

(Bloomberg) -- The Biden administration has informed some suppliers to China’s Huawei Technologies Co. of tighter conditions on previously approved export licenses, prohibiting items for use in or with 5G devices, according to people familiar with the move.

The 5G ban is effective as of this week, according to the people, who asked not to be identified to discuss nonpublic communications.

The rules create a more explicit prohibition on the export of components like semiconductors, antennas and batteries for Huawei 5G devices, making the ban more uniform among licensees. Some companies had previously received licenses that allowed them to keep shipping components to Huawei that the Chinese company may have then used in 5G equipment, while other companies were already subject to tighter restrictions.

Companies had complained about confusing rules after President Donald Trump’s administration added Huawei to the Entity List, requiring that U.S. firms obtain government licenses if they want to sell American tech and intellectual property to the Chinese telecommunications-equipment giant. U.S. officials had deemed the company a national-security threat.

The move is also a sign that the Biden administration plans to move forward on the tighter export controls implemented under Trump and more broadly indicates officials are following through on pledges to be tough on China. In an interview with MSNBC this month, Commerce Secretary Gina Raimondo promised to use the Entity List “to its full effect.”

The U.S. Commerce Department’s Bureau of Security and Industry, which oversees the Entity List, said in an emailed statement that it can’t comment on “specific export licensing questions.” The bureau said it “works with its interagency partners to apply consistently the licensing policies set forth in the Export Administration Regulations to protect U.S. national security and foreign policy interests.”

©2021 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.