Potential Lifeline? US Okays Chip Supplies to Huawei for Non-5G Businesses, Report Says

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In mid-July, Huawei reported significant growth in the first half of this year despite tightening US sanctions on the Chinese tech giant, including restrictions to limit the company’s access to semiconductors manufactured with American equipment.

The Financial Times (FT) has quoted unnamed sources as saying that the US is allowing an increasing array of chip firms to provide Huawei with components if they are not used for the company’s 5G businesses, in what the newspaper described as a “potential lifeline” for the Chinese tech behemoth.

Other insiders expressed hope that the US would greenlight their applications for licenses to resume shipments to Huawei, adding, “it has been indicated to us that chips for mobile devices are not a problem”.

The claims followed Huawei posting revenues of 454 billion yuan ($64.8 billion) in the first half of 2020, a 13.1 percent increase year-on-year, despite growing US sanctions on the firm and uncertainty over its role in the development of 5G telecommunications networks across the globe.

US Crackdown on Huawei

This came after the US Department of Commerce in May announced a ban on the export of semiconductors from global chipmakers to Huawei, noting in a separate statement that the department would extend a license allowing some American companies, particularly in rural US communities, to continue doing business with the Chinese tech giant for another 90 days.

The move came amid the ongoing US crackdown on the Chinese firm that kicked off in 2019, when the Trump administration blacklisted Huawei, accusing the company of cooperating with China’s intelligence services, allegations that both Beijing and the tech giant vehemently reject.

Washington also began a campaign of discouraging countries from allowing Huawei to take part in building national 5G networks using similar claims, despite rejections from the UK, France, Germany, the Czech Republic, and some Canadian telecom providers.

As far as Britain is concerned, its government finally yielded to US pressure and in July stopped the Chinese smartphone manufacturer from participating in the nation’s 5G telecom infrastructure.

Sourse: sputniknews.com

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