Huawei Faces Another Significant Setback: US Revokes Export Licenses to Chinese Telecommunications Giant

The United States has dealt another significant blow to Chinese telecommunications company Huawei by revoking export licenses that allowed companies like Qualcomm and Intel to supply the company. This action further intensifies the pressure on Huawei, which has been at the center of a technological rivalry between Beijing and Washington over concerns of potential Chinese espionage.

Five years after the initial announcement that Huawei would be banned from the Western smartphone market, this latest development marks a significant setback for the company. In response, the Chinese Ministry of Commerce expressed strong opposition, vowing to take all necessary measures to defend the rights and interests of Chinese companies. A complaint filed by Marco Rubio and Elise Stefanik highlighted concerns that active licenses allowed Huawei to collaborate with Intel and Qualcomm to sustain its PC and smartphone segments. They criticized Huawei’s access to US technology to develop new products and noted the company’s resurgence despite facing significant challenges in the past.

Qualcomm disclosed in recent financial results that they hold export licenses permitting the sale of 4G and other integrated circuit products to Huawei, although they do not anticipate generating revenue from Huawei products beyond the current year. The ongoing restrictions on Huawei’s access to US technology and components continue to impact the company’s operations and future prospects in the global market. Sanctions imposed on Huawei since 2019 have already limited its access to US-made software and components, requiring suppliers to obtain a license before conducting business with the company.