Trump supplies Huawei to China in a farewell shot: Report | Business and Economy News


The Trump administration informed Huawei’s suppliers, including United States-based chipmaker Intel, that it was canceling some licenses to sell to the Chinese company and intended to reject dozens of other applications to supply the telecommunications firm, in this case. People familiar with told the news. Agency.

The prospect of action against Huawei Technologies – under Republican President Donald Trump – is the latest in a long-running attempt to undermine the world’s largest telecommunications equipment manufacturer, which Washington sees as a national security threat.

In the last days of Trump’s administration, notice came amid a rash of US efforts against China. Democrat Joe Biden will take the oath of office on Wednesday.

A spokesperson for Intel Corp declined to comment. Commerce said it could not comment on specific licensing decisions, but the department has continued to work with other agencies to “consistently” implement licensing policies in a manner that “interests U.S. national security and foreign policy Protects “.

In an email seen by Reuters documenting the actions, the Semiconductor Industry Association said on Friday that the Commerce Department had “denied Huawei a significant number of license requests for exports and revoked at least one previously issued license Intends to “. Sources familiar with the situation, who spoke on condition of anonymity, said that there was more than one revocation. Sources said eight licenses were taken from four companies.

A ‘broad range’ of products

Japanese flash memory chip maker Keoxia Corp had at least one license revoked, two of the sources said. The company, formerly known as Toshiba Memory Corp, said it “does not disclose business details about specific products or customers”.

The semiconductor association’s email said the action spread a “wider range” of products in the semiconductor industry and asked companies whether they had received notice.

The email stated that companies had been waiting for several months for licensing decisions, and that the administration had less than a week to deal with the denial, a challenge.

A spokesman for the semiconductor group did not respond to a request for comment.

Companies that received a “denial of intent” notice have 20 days to respond, and the Commerce Department has 45 days to recommend a decision change or be final. Companies will have another 45 days to appeal.

Sharp note

The US put Huawei on a Commerce Department “unit list” in May 2019, which barred suppliers from selling American goods and technology.

But some sales were allowed and others refused, while the government intensified its action on the company, expanding the US authority to require licenses for the sale of semiconductors made overseas with American technology was.

Prior to the latest action, some 150 licenses were pending for $ 120bn worth of goods and technology, which were held because various US agencies could not agree on whether they should be granted, by this case. The acquaintance said.

According to the source, the $ 280bn license application for goods and technology for Huawei has still not been processed, but is now likely to be denied.

An August rule stated that products with 5G capabilities were likely to be rejected, but sales of less sophisticated technology would be decided on a case-by-case basis.

Latest denial

Sources said the US took the latest decisions during half a dozen meetings with senior officials of the departments of commerce, state, defense and energy starting January 4. Officials provided detailed guidance about which technologies were capable of 5G, and then implemented the standard the person added.

The issuance of denials for most of the approximately 150 disputed applications, and the cancellation of eight licenses to conform to the latest license, the source said.

The US action came after the recent Trump appointment to the Commerce Department, Corey Stewart, who wanted to push through staunch China policies after he was appointed to a two-month term at the agency at the end of the administration.

Trump has targeted Huawei in other ways. Hyung’s chief financial officer Meng Wenzhou was arrested in Canada in December 2018 on a US warrant. Huawei’s founder’s daughter Meng and the company were driven to misleading banks about their business in Iran.

Meng has said that he is innocent. Huawei has denied espionage claims and pleaded not guilty to the indictment, including charges of violating US sanctions against Iran and conspiring to steal trade secrets from US technology companies.

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