The Biden administration has stopped approving renewal of licenses to some U.S. companies that have been selling essential components to the Chinese company, according to two people familiar with the matter. Neither was authorized to comment publicly on the sensitive matter and they spoke on the condition of anonymity.
The company, which makes network equipment and smartphones, has been on the U.S. Commerce Department’s entity list, which comprises those subject to licensing requirements, since 2019. It has been allowed to buy some less advanced components. But the new restrictions could cut off Huawei’s access to processor chips and other technology, as large U.S.-based companies such as Intel and Qualcomm are forced to wind down business with it.
Bloomberg News and the Financial Times first reported the administration move.
Huawei Technologies Ltd., China’s first global tech brand, is at the center of a conflict between Washington and Beijing over technology and security. U.S. officials say Huawei is a security risk and might facilitate Chinese spying, an accusation the company denies.
“China is gravely concerned about the reports,” said a foreign ministry spokeswoman, Mao Ning. She accused Washington of “over-stretching the concept of national security and abusing state power” to suppress Chinese competitors.
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