Breaking: U.S. approved Billions USD worth licenses to Huawei

This is quite interesting news, the U.S. has granted billions of dollars worth of licenses to Huawei from November through April to get access to U.S.-made technologies while being listed under the U.S. Entity List.

According to the document released by the U.S. Congress and seen by Reuters, Huawei has received over 113 export licenses worth 61 billion US dollars were approved for suppliers to ship products. Alongside the Chinese tech giant, the U.S. has also approved, around 188 licenses (worth 42 billion dollars to the Chinese semiconductor maker – SMIC.

The data shows that Huawei’s ratio of license approval was around 69% of the overall request for approval that has been made, while SMIC got approval for 9 out of 10 license applications.

However, the entire process is a bit complicated and there are plenty of senators and politicians that have voted to retain strict restrictions on the Chinese tech maker.

Some of them have raised their doubts on the current U.S. president – Joe Biden on his low-level policy on Huawei and why it’s continues to get exceptions in terms of accessing technologies that could expand its business.

“It is just another example of President Biden not taking the economic and security threat posed by the Chinese Communist Party seriously,” said Republican Senator Marco Rubio.

U.S. Commerce Department Statement:

The Commerce Department has been the center of this entire matter since the beginning and imposed sanctions on Huawei. The commerce department said that the release of an “arbitrary snapshot” of license approvals “risks politicizing the licensing process and misrepresenting the national security determinations” made by the government.

Heart of the matter:

In May 2019, Huawei has been placed under the U.S. entity list, which bans the company from purchasing U.S.-made technologies such as important chipsets and so on. The company has also given up on making new chipsets due to the expansion of restrictions made by the U.S. government.

However, the information regarding the current licenses has not been disclosed but there are certain licenses that have been denied in the process.

Furthermore, a previous report reveals that Of the 113 licenses approved for Huawei after U.S. Entity List, 80 were for non-sensitive goods that only required a license because the recipient was blacklisted. For SMIC, the figure was 121 of 188.