The latest approval can be connected with Huawei’s move to pivot towards items that don’t fall under the trade ban.
Officials in the US have now approved Huawei’s license applications to purchase chips worth millions of dollars. Previously, Huawei was blacklisted in the US, citing security concerns, but now, the license was approved due to the rise in demand in the auto components business. Huawei is one of the biggest names in the telecommunications equipment segment, but it was continuously hobbled by stringent trade restrictions made by former president Trump’s office. This eventually led to Huawei being blacklisted in the US to sell chips and other important components for smartphones and network gear businesses.
The Biden administration continued to enforce the ban and denied Huawei from selling chips to be used in 5G devices. However, in recent times, several sources have reported that the US has now granted licenses for suppliers to make use of chips from Huawei for vehicle parts like sensors and video screens. The latest approval can be connected with Huawei’s move to pivot towards items that don’t fall under the trade ban. The licenses were recently approved by the US mainly because the chips used in the auto segment are not very sophisticated, and it has a very low bar for receiving approval from the government.