"Hard line on exports": Biden government massively restricts Huawei

"Hard line in exports"
Biden government massively restricts Huawei

Because of allegations of espionage, the US is expanding its sanctions against the Chinese smartphone manufacturer Huawei. Deliveries to the company are severely restricted. Huawei is already in considerable distress as a result.

This week, the American government changed the licenses for companies that supply items to Chinese network equipment and smartphone maker Huawei. The changes could disrupt existing contracts with Huawei that were agreed under previous licenses, said two people involved in the matter. The measures would show that the US government is taking a tough line on exports to the company.

Huawei has been blacklisted by the US due to national security concerns. A US Department of Commerce spokeswoman declined to comment, saying the licensing information would be confidential. A Huawei spokeswoman also declined to comment. In January, the Trump administration decided to deny 116 licenses worth a total of $ 119 billion and only approve four licenses worth $ 20 million, according to a U.S. Department of Commerce document available to Reuters.

USA accuse Huawei of espionage

US sanctions make business more difficult for Huawei. In 2019, the company was put on a black export list by former US President Donald Trump. The USA have significantly restricted deliveries to the group. The delivery bottlenecks meanwhile affect the production of the in-house Kirin chips. Company founder Ren Zhengfei has already expressed the hope that the new US administration under Joe Biden will pursue an "open policy".

The US accuses the company of maintaining ties to the government in Beijing and suspects that Huawei offers a kind of back door for spies to gain access to state or company secrets. Huawei rejects this. Most recently, the company has already drawn conclusions from the increasing problems and sold the cheap smartphone brand Honor.

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