Title: Biden Limits Trading In 5G Components
description: Huawei was a pioneer of the 5G revolution, at least in China. Following the ban and lawsuits, Huawei began to lose its position in the global market. It looks like the Chinese company has received another blow, this time from the newly formed Biden administration. The Biden administration has further improved the licenses for companies selling Huawei. POTUS has restricted companies from supplying components that can be used with 5G devices, reports Reuters.
The new amendment may additionally disrupt existing contracts with Huawei, which were drawn up on the basis of previous licenses. So we can see that, as in life, it is not always perfect and sometimes something has to get complicated. Information on restrictions has been circulating on social media for a long time, but it came into force quite recently. In January, the Trump administration drafted a bill that would refuse 116 licenses with a face value of $ 119 billion. Instead, the administration approved only four licenses worth $ 20 million. What was the refusal?
The license was denied mainly for telephone, memory, web applications and other devices. According to a document from the U.S. Department of Commerce, the Trump administration approved business licenses for sale
approximately $ 87 billion. It appears the Biden administration has tightened Huawei's export licenses even further amid concerns over national security. Recent changes highlight legacy licenses that are more consistent with stricter licensing rules. We have bad news.
Tensions between the US and China have been increasing for some time; even more after the coronavirus pandemic and China's repression in Hong Kong. The newly revised restrictions are sure to hurt US suppliers. The interest in devices will surely decrease. Large losses for companies are also possible.
In addition, a spokesman for the US Department of Commerce declined to comment on the new amendment and is unwilling to comment on it.
We can only say that on the telephone market it is like in life once on a cart and once underneath.
keywords: Huawei, 5G, limitations, Biden, losses
