Wednesday, July 2, 2025

Huawei Gets Approval from US Officials to Buy Chips for its Auto Business

In a rather surprising turn of sentiment, Washington has begun approving license applications that would allow blacklisted Chinese company Huawei to purchase semiconductor chips for its expanding automotive business.

According to Reuters, which cited people familiar with the matter, the US Department of Commerce has granted numerous licenses worth hundreds of billions of dollars to American suppliers to sell semiconductor chips to Huawei’s auto component business. The latest license approvals come as the telecommunications equipment maker looks to make a shift towards manufacturing products that are less vulnerable to US sanctions.

The Commerce Department’s latest move was met with significant opposition, particularly from US Senator Marco Rubio, whom said the license approvals were “yet another example of President Biden’s failure to protect America’s economic and national security.” According to him, the White House needs to ramp up its restrictions and penalties on Huawei, rather than relax them.

However, according to one of the Commerce Department’s high ranking officials, Cordell Hull, there is little risk to US national security by allowing Huawei access to chips for its auto business. “If it’s truly a commodity product, I think we would want western and allied companies getting that revenue.”

After the US government put Huawei on a trade ban in 2019 in an effort to prevent US companies from selling their products to the Chinese company, Washington ramped up its efforts even more last year, and restricted the sale of chips made with US equipment abroad. As a result, Huawei suffered a sharp decline in its revenue in 2021, after the tightened trade restrictions forced the company to sell a portion of its handset business.

Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Kyle Bass Makes Fearless Bet Against Hong Kong’s Currency Peg

Kyle Bass, who founded Hayman Capital Management and then made his mark when he bet...

Wednesday, June 10, 2020, 01:40:21 PM

Beijing Further Cracks Down on American Defense Firms Over Taiwan Arms Sales

China has announced sweeping export restrictions on 28 U.S.-based defense contractors and related entities, escalating...

Saturday, January 4, 2025, 09:37:00 AM

US Navy Recovers Downed Chinese Spy Balloon

The United States Navy has recovered the suspected Chinese spy balloon, or at least most...

Wednesday, February 8, 2023, 12:21:00 PM

China Slams US As Iran Attacks Threaten Beijing’s $400 Billion Oil Pact With Tehran

The escalating conflict in Iran is eroding the value of China’s 25-year, US$400 billion Comprehensive...

Monday, June 23, 2025, 11:19:00 AM

US Blocks Nvidia Exports to China Under Latest Retaliation

Nvidia (NASDAQ: NVDA) is caught in the middle of the US-China trade war after Washington...

Wednesday, April 16, 2025, 07:54:21 AM