US Reportedly Exempts Chips for Autos From Huawei-Related Bans

The previous US administration cracked down on the Chinese tech giant, which has been gradually securing stronger positions on the telecom market, citing the need to protect national interests. Beijing labelled the campaign as a case of unfair competition by the US.

US officials have greenlit the sale of chips designed to be used in cars to Huawei after previously cutting the Chinese company off from practically all American technologies, Reuters has reported, citing anonymous sources "familiar with the application process". According to the sources, the administration has provided licenses to unidentified suppliers so they can sell these chips to Huawei.

Among the items that were greenlit for export are chips often used in video screens and sensors for cars, Reuters said.

The US Department of Commerce did not confirm the Reuters report, simply noting that the government continues "to restrict Huawei's access to commodities, software, or technology for activities that could harm US national security and foreign policy interests". One of Reuters' sources explained that the Department is prohibited from revealing which requests for export licences had been approved or rejected.

US Crackdown Against Huawei

Washington's campaign against Chinese tech giant Huawei started under President Donald Trump, who accused the company of spying for Beijing and tried to force American allies to ditch Huawei's 5G equipment, famed for its good quality-price balance. In addition, the White House prohibited American companies from selling any tech that could pose a potential threat to the US, meaning that most dual-use technologies, such as chips for smartphones, could no longer be exported and sold to Huawei, which had by then secured a major stake in the smartphone market.

The company strongly denied the allegations against it, but even with the arrival of the Biden administration, the US policy hasn't changed much. Huawei, in turn, started to adapt to the new reality and began to develop its own chip production as well as its own operating system, since Android had become unavailable too.

In addition, Huawei shifted its focus towards the automobile market after suffering a drop in revenues in 2020, believed to be due to the US bans on selling smartphone components to the Chinese tech giant.