US officials have approved license applications worth hundreds of millions of dollars for China’s blacklisted telecom company Huawei to buy chips for its growing auto component business, two people familiar with the matter said.
Huawei, the world’s largest telecommunications equipment maker, has been hobbled by trade restrictions imposed by the Trump administration on the sale of chips and other components used in its network gear and smartphones businesses. The Biden administration has been reinforcing the hard line on exports to Huawei, denying licenses to sell chips to Huawei for use in or with 5g devices.
But in recent weeks and months, people familiar with the application process told Reuters the US has granted licenses authorizing suppliers to sell chips to Huawei for such vehicle components as video screens and sensors. The approvals come as Huawei pivots its business toward items that are less susceptible to US trade bans.
Not everyone is a fan. Republican Senator Tom Cotton, who has been deeply critical of Huawei in the past, said in a statement, “It’s unacceptable for the Biden administration to ease the pressure campaign against Chinese spy companies like Huawei.”
Auto chips are generally not considered sophisticated, lowering the bar for approval. One person close to the license approvals said the government is granting licenses for chips in vehicles that may have other components with 5g capability.
Asked about the automotive licenses, a US Department of Commerce spokesperson said the government continues to consistently apply licensing policies “to restrict Huawei’s access to commodities, software, or technology for activities that could harm US national security and foreign policy interests.”
The Commerce Department is prohibited from disclosing license approvals or denials, the person added.
A Huawei spokeswoman declined to comment on the licenses, but said: “We are positioning ourselves as a new component provider for intelligent connected vehicles, and our aim is to help car OEMs (manufacturers) build better vehicles.”
Citing threats to US national security and foreign policy interests, the US has gone to great lengths to slow the growth of Huawei’s key communications-related business.
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