, the USA has tightened its sanctions against the Chinese technology group Huawei . According to insiders, US companies are unlikely to sell goods to Huawei in the future, as the Reuters news agency, Bloomberg and the Financial Times all reported.

The previous restrictions primarily included products related to the modern 5G mobile communications standard. These have been extended to older technologies, according to the standard . Parts for setting up WLAN networks according to the WI-FI 6 and WI-FI 7 standards now also fall under the new restrictions. This also includes high-performance chips for artificial intelligence cloud offerings.

No statement from Huawei – criticism from China

Both the US Department of Commerce and Huawei themselves did not want to comment on the issue. The former simply pointed out that the regulations were being continually checked. The government in Beijing is “seriously concerned” about the development of the restrictions. “This move violates the principles of market economics and the rules of international trade and finance, damages the international community’s trust in the U.S. business environment, and represents blatant technological hegemony.”

Already on the blacklist since 2019

The predecessor of the current US President, Donald Trump, had already put Huawei on a blacklist in 2019. The reason for this was concerns about national security, as the network equipment and smartphone provider could cooperate with Chinese authorities and the military. Since then, US companies have had to apply for permits to export certain products.

In recent weeks, the current US administration has imposed further sanctions in the technology sector in order to prevent the modernization and strengthening of the Chinese army.

At the moment, the key restriction is that Huawei can only receive American technologies with permission from the US government. Current President Joe Biden also left this in effect. Now, according to reports, some people in charge are in favor of perhaps no longer issuing such licenses at all. For comparison, the volume of approved deliveries to Huawei in 2021 was still $61 billion.

How badly would this affect Huawei?

In recent months, restrictions on deliveries from the USA have become increasingly tighter. However, Huawei is currently the second largest smartphone provider and wants to continue to grow in the future in order to overtake market leader Samsung, among others. As a result of the sanctions, the group can no longer sell devices with fast 5G data transmission and Google services, which practically puts it out of business internationally. The company now has to rely on chips from Qualcomm in order to be able to bring additional smartphone models onto the market. However, it is unclear to what extent a complete stop will affect the group

What is certain is that China is continually trying to build a chip industry that will function largely independently of supplies from the West.

Sources:

Time , The Standard

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