The U.S. Department of Commerce has denied relaxing trade restrictions on Chinese technology giant Huawei. However, the Commerce Department did not refute reports that Huawei had been allowed to buy US semiconductors for its auto parts business.
"this policy has not been relaxed or revised," a spokesman for the U.S. Department of Commerce said on Friday. "
The Commerce Department approved an exemption for Huawei to buy car chips, it emerged on Wednesday. Huawei has been banned from doing business with US suppliers on the Commerce Department's "entity list".
Huawei remains on the entity list and continues to be subject to its licensing policy, the Commerce Department said on Friday.
"I am trying to protect the United States from the threat of the Chinese Communist Party, especially Huawei's predatory espionage," former US Secretary of State Pompeo (Mike Pompeo) wrote on Twitter after news broke on Wednesday that the United States was allowed to sell auto parts chips to Huawei. This administration of the United States has succumbed to them. The Russians got a pipeline. Iran received billions of dollars. The Communist Party of China has got semiconductors. "
On Thursday, Republican Senator Rubio (Marco Rubio) of Florida sought answers from the Biden administration about his actions.
"the Biden administration cannot be allowed to conceal this approval from the public," Rubio said in a statement. Officials need to present what actions they have taken and why.
"it is not in the economic or security interests of the United States to help Huawei," Rubio said. The Biden administration should not grant exemptions, but should increase penalties and restrictions on Huawei and other Chinese technology companies. "
Paul Triolo, director of science and technology policy practice at Eurasia Group (Eurasia Group), a political risk consultancy, calls these reactions "political games".
"anything that looks good for Huawei is seen as a fair political gesture to the government," Triolo said. But they do not reflect policy changes, Triolo added.
In a statement on Friday, the Commerce Department said the license applications submitted to it were reviewed by the Department of Defense, the Department of Energy and the State Department.
"the Biden administration has not changed the regulatory restrictions imposed on the entity list of Huawei and its subsidiaries in 2019 and 2020, nor has it changed the policies established during the Trump administration to implement these restrictions," the Commerce Department statement said. "
A representative of Huawei declined to comment.
The United States has approved hundreds of millions of dollars in license applications from suppliers to sell chips for auto parts to Huawei, according to two people familiar with the matter on Wednesday.
Huawei, the world's largest telecoms equipment maker, has been struggling because of trade restrictions imposed by the Trump administration on the sale of chips and other components used in its network equipment and smartphone business.
But in recent weeks and months, the US has approved suppliers to sell chips to Huawei for car parts such as video screens and sensors, according to people familiar with the application process. Huawei is shifting its business to products that are less vulnerable to US trade bans.
Car chips are generally considered uncomplicated, which lowers the threshold for approval. A person familiar with the approval of the license said the government was licensing car chips for other parts that might have 5G functions.
"this is not a sign that the Biden administration has softened its attitude towards Huawei," said James Lewis, director of the (Centre for Strategic and International Studies) Technology and Public Policy Program at the Center for Strategic and International Studies in Washington. They are trying to look at risk more rationally.
"there is almost no risk in selling car chips," Lewis said. But that doesn't mean they will relax 5G. "
The United States put Huawei on the Commerce Department's trade blacklist in 2019, banning the sale of American goods and technology to the company without a special license.
In 2020, the United States tightened restrictions on the sale of chips made overseas using American equipment. The United States also called on allies to exclude Huawei from the 5G network, citing espionage concerns. Huawei denies the allegations.
Huawei reported its biggest-ever revenue decline in the first half of 2021 after US restrictions forced it to sell some of its once dominant mobile phone business and new growth areas were not yet fully mature.
