US tightens restrictions on companies selling technology to Huawei

US Revokes Licenses to Huawei in Effort to Reduce China’s Tech Industry Dominance, Amid Ongoing Tensions

The United States has recently taken a step to reduce China’s dominance in the tech industry by revoking certain licenses that allow the sale of chips to Huawei, a Shenzhen-based company. While the specific licenses that have been revoked were not detailed, the decision was made to align with the US’s efforts to protect its national security interests in the face of evolving digital threats.

This action is part of an ongoing campaign against Huawei, with the company being added to an “entity list” in 2019 due to concerns about its ties to the Chinese military. Despite strict trade regulations, Huawei has shown resilience, especially in its consumer business. The recent release of the Mate 60 Pro, which uses chips from top Chinese chipmaker SMIC, has contributed to its global success by addressing and circumventing US restrictions.

Although Huawei is not among the top five smartphone brands in global shipments, the company has seen a significant 70% year-on-year increase in shipments in mainland China. This growth has solidified its position in the Chinese market, where it now accounts for 17% of total shipments, surpassing competitors like OPPO, HONOR, vivo, and Apple.

The US government’s recent actions are occurring in the context of escalating tensions between the two nations. President Biden recently signed legislation that could potentially lead to a ban on TikTok in the US unless it separates from its Chinese parent company. The intertwining of economic and geopolitical interests has become increasingly evident in recent years, with both sides having time to adapt to new restrictions, which in many cases have been ineffective.

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