US imposes more restrictions on Huawei suppliers

The Biden administration further restricted US companies from selling 5 G-related items to China’s Huawei Technologies Co by amending their licenses.

The amendment would make the licenses more consistent with the tougher policies implemented by the Trump administration.

The new conditions could disrupt existing contracts with Huawei previously agreed upon under previous licenses.

The Commerce Department granted the initial export licenses after placing Huawei on its trade blacklist in 2019 over US national security concerns..

A revised license that took effect March 9th prohibited items that usable with or in any 5G devices. Another amended license that took effect on March 8 had a prohibition for using in the military, 5G, critical infrastructure, enterprise data centers, cloud, or space applications.

The notice also required certain items must have a density of not more than 6 gigabytes and other technical specifications.

Both revised licenses also mandated Huawei or customers to implement a parts control plan and make inventory records available to the US government upon request before export.

Some 300 applications with a valued $296 billion were pending as of January.