US and allies strangle Huawei’s growth

The Trump administration’s stern stance against Chinese cellular technology company Huawei could pale in the face of the Biden administration’s policy. Far from easing the restrictions, Biden seems set to tighten them.

WASHINGTON D.C. – When Joe Biden took over as president, Chinese telecoms company Huawei Technologies saw at least a glimmer of hope that the US-led campaign to exclude him from international markets could ease a bit.

At a time leading the world in smartphone sales, Huawei has seen its market share fall outside of China since the Trump administration began cutting off its supply of key technology to produce modern 5G phones. Similarly, the business of the company installing mobile telecommunications infrastructure, and especially new 5G-capable systems, has been badly damaged by a US campaign against it.

But Huawei and other Chinese firms thought the two countries could at least step back from the Trump-era trade war.

Biden tightens restrictions

Earlier this month, Huawei’s prospects for relief were sharply reduced when the Biden administration announced that it would not only continue with some of the Trump administration’s export bans, but would tighten them.

“The Biden administration appears to be upholding Trump’s final policy regarding which Huawei-related export licenses to approve or deny, which is more restrictive than the 2020 licensing policy,” said Kevin Wolf, former undersecretary of Commerce for the administration of exports in the Office of Industry and Security of the Department of Commerce.

Now a partner at the Akin Gump law firm in Washington, Wolf added: “To make the licensing policy consistent and level the playing field, it has amended the 2020 licenses limiting their scope to align with the licensing policy. end of Trump. In particular, licenses for shipments of items ‘for use on or with 5G devices’ will be denied or revoked. “

Contentious meeting

In addition, on the eve of the first high-level meeting between Biden administration officials and representatives from Beijing, the Commerce Department announced that it had issued subpoenas to several Chinese companies as part of an investigation into national security threats.

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