The Trump administration has informed Intel Corp and other tech companies that it is canceling licenses to do business with China’s Huawei Technologies company and rejecting new license applications, Reuters reported on Sunday.
The latest move against Chinese tech companies comes just days before Trump’s departure from the White House on Wednesday. The US claims that telecommunications equipment manufacturer Huawei is a threat to national security.
The Trump administration banned American companies from doing business with Huawei in 2019, but a handful – including Intel ITC,
– Since then special approval was given to do so.
Citing unnamed sources, Reuters reported that the eight licenses had been revoked from four companies, and described a Commerce Department intent on citing a Friday email from the Semiconductor Industry Association “License for Export to Huawei To deny a significant number of requests. ” Reuters said that the majority of the approximately 150 pending license applications, valued at about $ 120 billion in goods and services.
The Trump administration has taken punitive action against several Chinese companies in recent months, including an unsuccessful attempt to ban Tickcock and an executive order that forced the New York Stock Exchange to delist China’s three largest telecom companies .
It is unclear if the incoming Biden administration will continue to impose sanctions against Chinese companies, leading some experts to speculate that the orders could be stayed while the new administration reviews the cases.