Trump admin slams China's Huawei, halting shipments from Intel, others

Trump admin slams China’s Huawei, halting shipments from Intel, others


New York/Washington: People familiar with the matter told Reuters that the Trump administration has notified Huawei suppliers, including chip maker Intel, that the company is revoking certain licenses sold to Chinese companies and intends to refuse dozens of supply to telecommunications companies Other applications.

This action may be the last action taken by Republican President Donald Trump against Huawei Technologies. It is the latest in a long-term effort to weaken the world’s largest telecommunications equipment manufacturer. Washington believes this It is a threat to national security.

These notices were made in a series of efforts by the United States against China in the last days of Trump’s administration. Democratic President Biden will be sworn in as President on Wednesday.

Huawei and Intel declined to comment. The Department of Commerce said it was unable to comment on specific licensing decisions, but said that the department will continue to cooperate with other agencies to implement licensing policies “consistently” to “protect U.S. national security and foreign policy interests.”

In an email documenting the behavior seen by Reuters, the Semiconductor Industry Association stated on Friday that the Ministry of Commerce had issued “intent to reject large-scale export license applications to Huawei and revoke at least one previously issued license.” An insider who asked not to be named said that there have been more than one withdrawals. A source said that the eight licenses were obtained from four companies.

This news triggered moderate profit-taking in some semiconductor-related stocks in Asia. South Korea’s Samsung Electronics fell 1.5%, Japan’s Advantest fell 1.5%, and Tokyo Electronics fell 0.8%.

Two sources said that Japanese flash memory chip maker Kioxia Corp had at least one license revoked. The company, formerly known as Toshiba Memory Corp (Toshiba Memory Corp), said it would not “disclose business details about specific products or customers.”

The Semiconductor Association’s e-mail stated that these actions involved a “wide range” of products in the semiconductor industry and asked whether the company had been notified.

The e-mail pointed out that the company has been waiting for “many months” approval decisions, and that in less than a week in the administration, responding to denials was a challenge.

A spokesperson for the Semiconductor Group did not respond to a request for comment.

Companies that have received the “rejection intent” notification have 20 days to respond, while the Ministry of Commerce has 45 days to inform them of the changes or final decisions. Then, the company will have 45 days to appeal.

The United States included Huawei on the Entity List of the Ministry of Commerce in May 2019, restricting suppliers from selling American products and technologies to it.

However, while the United States intensified its crackdown on the company, some sales were allowed while others were rejected, partly because the scope of authorization in the United States was expanded and the sales of semiconductors manufactured abroad using US technology must be licensed.

People familiar with the matter said that before the latest action, about 150 licenses were being applied for $120 billion worth of goods and technologies, which were shelved because US agencies were unable to reach an agreement on whether these licenses should be granted.

According to sources, there are still US$280 billion of Huawei product and technology license applications that have not been processed, but they are now more likely to be rejected.

An Intel spokesperson said in September last year that Intel has obtained permission from the US authorities to continue to provide certain products to Huawei Technologies.

A rule in August said that products with 5G capabilities may be rejected, but sales of less advanced technologies will be decided on a case-by-case basis.

The source said that starting from January 4, the United States has made the latest decision in six meetings with senior officials from the Department of Commerce, State, Defense and Energy. The person added that officials developed detailed guidance on which technologies can support 5G and then applied the standard.

According to sources, this means rejecting the vast majority of the approximately 150 disputed applications and revoking eight licenses to bring them into line with the latest rejections.

The U.S. action came after pressure from a recent Trump appointee in the Commerce Department, Corey Stewart, who wanted to push through hardline China policies after being hired for a two-month stint in the agency at the end of the administration.

Trump has targeted Huawei in other ways. Meng Wanzhou, Huawei’s chief financial officer, was arrested in Canada in December 2018, on a U.S. warrant. Meng, the daughter of Huawei’s founder, and the company itself were indicted for misleading banks about its business in Iran.

Meng has said she is innocent. Huawei has denied the claims of spying and pleaded not guilty to the indictment, which also includes charges of violating U.S. sanctions against Iran and conspiring to steal trade secrets from American technology companies. 

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