Nvidia’s plans to sell technology to China’s Huawei would be thwarted if the US government follows through on a proposal to further restrict shipments to the blacklisted company. Its a well known fact that Huawei was placed on the “entity list” in 2019 amid concerns that it could spy on Americans and allegations of intellectual property theft and sanctions violations.
When selling US goods to companies on the list, the US requires suppliers to obtain a special licence, which is usually denied. However, the Trump administration implemented a more lenient policy towards Huawei, denying it access to 5G chips while allowing other items such as 4G chips to be shipped to the company.
In 2021, US officials had approved licence applications worth hundreds of millions of dollars for Huawei to buy chips for its growing auto component business, including vehicle components such as video screens and sensors.
However, the Biden administration has considered limiting the items that US companies are authorised to ship to telecoms equipment giant Huawei Technologies, which was added to a US trade blacklist in 2019 but continues to receive billions of dollars in US goods under a special plan implemented by the Trump administration.
The report further states that the Biden administration is attempting to assess the impact of proposed Huawei policy changes on US companies before imposing new rules that could crimp projected revenue streams at a time when the tech industry is already reeling. It also provides unusual insight into the politically sensitive question of which US companies are seeking business ties with Huawei, one of Washington’s most heavily sanctioned Chinese firms.
Also Read:
