With a few days to go until President Donald Trump’s term ends, the Republican team continues to approve measures that impact on the trade war with China. Recently, the White House applied the first sanctions against Xiaomi, and now the target is Huawei.
This is because the Commerce Department notified several suppliers of the Chinese company confirming that it is revoking some licenses that allowed the sale of components to the company. According to Reuters, Intel is an example of an American company that can no longer sell its processors to Huawei.
People who had access to Commerce Department documents also commented that the agency made it very clear that it will reject “dozens of license applications” that have been stalled since 2020. An example of this is Google’s request.
For now, Huawei has not officially commented on the matter. The Commerce Department preferred to remain silent. Anyway, the semiconductor industry association sent a snippet of the email to Reuters:
[The Department of Commerce] intends to deny a significant number of export license applications to Huawei. In addition, the agency is revoking at least one license previously issued.
So far, it is too early to know whether sanctions against Chinese companies should continue to be used by new President Joe Biden. Even so, companies that have lost their licenses have 20 days to appeal in an administrative proceeding. Otherwise, the department’s action becomes permanent.