The United States government is reviewing its policy on exporting certain products to Huawei, a Chinese telecommunications giant, as it faces scrutiny from the Congress amid concerns about the company’s potential ties to the Chinese government. The Commerce Department is conducting a “top-to-bottom review” of its export control policies related to China, including the policy that permits some US exports to Huawei. Here are the details…
US is reviewing Huawei export license policy amid rising congressional scrutiny of China
Huawei was placed on the Commerce Department’s Entity List in 2019, which prohibits US companies from trading specified items with entities named on the list unless they obtain a license to do so. The move was made due to concerns that Huawei’s 5G wireless networking gear could be used by the Chinese government for espionage. Huawei has denied the allegations, and its founder has said that the company would resist any Chinese government efforts to obtain its data.
However, according to Foreign Affairs Committee chairman Michael McCaul, the Commerce Department approved over $23 billion in license applications to trade with Chinese-affiliated companies on the Entity List between January and March of 2022. McCaul questioned the department’s decision to approve these licenses while the US government was trying to sideline Huawei and other similar companies.
Alan Estevez, a Commerce Department official, testified before the House Foreign Affairs Committee on Tuesday, saying that the licensing rule for Huawei was “under assessment.” Estevez added that Entity List restrictions do not provide for a “blanket embargo” on exports but rather reflect specific rules about particular exports.
In 2020, the Commerce Department also moved to prevent Huawei’s suppliers from selling the company semiconductor chips made by US-built software and equipment, unless those suppliers also obtained a license. Additionally, the Federal Communications Commission has prohibited US wireless carriers from using federal funding to purchase Huawei networking gear and banned future approvals of Huawei equipment for sale in the United States.
The US government’s scrutiny of Huawei is part of a larger trend of increasing tensions between the United States and China, particularly in the realm of technology. The US government has been wary of Chinese companies’ potential ties to the Chinese government and has taken steps to limit their access to US technology. Meanwhile, China has accused the US of unfairly targeting its companies and has taken steps to develop its own technology to reduce its reliance on US imports.
The outcome of the Commerce Department’s review of its policy on exporting products to Huawei remains to be seen. However, the review reflects the ongoing tensions between the United States and China and highlights the importance of technology in this geopolitical competition.
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