Huawei was deprived of some of its American suppliers during the last days of Donald Trump’s presidency. Without much hope, some suppliers are currently trying to convince Joe Biden to grant them a new license to sell. Billions of dollars in chips remain hanging over the decisions of the new administration.
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Donald Trump took advantage of his last days at the head of the United States to decree several unpopular measures. The former president notably placed Xiaomi on a blacklist, prohibiting the firm from receiving funding from American investors. In parallel, Donald Trump revoked several sales licenses granted to US suppliers of Huawei, including Intel.
In recent months, some suppliers of the Chinese group had indeed managed to negotiate exemptions allowing to collaborate with Huawei despite the embargo. At the end of January, the billionaire suddenly canceled these permissions for no apparent reason. Semiconductor vendors are trying to convince Joe Biden to ease trade restrictions, according to five anonymous sources interviewed by Reuters.
On the same subject: Ren Zhengfei, founder of Huawei, wants to negotiate with Joe Biden
Billions of dollars in chips depend on Joe Biden’s decisions
As Reuters points out, billions of dollars in US technology and chips depend on how the Biden administration enforces the measures of the Trump Executive Order. According to an official document from the United States Department of Commerce, Trump administration rejected 116 license applications worth $ 119 billion as of January 13. Another 300 claims worth a total of $ 296 billion are still pending.
There is little hope that Joe Biden does not apply to the letter the sanctions decreed by his infamous predecessor in 2019. Recently questioned on the issue, Gina Raimondo, the new secretary of commerce of the United States, assures us that he there is no reason blacklisted companies should be able to escape sanctions. “Everyone chickened out” the head of a Huawei supplier told Reuters.
In any case, the companies affected by Donald Trump’s refusal have demanded additional time to initiate an appeal procedure. Some suppliers have been granted a three-month extension. At this time, it is not known whether this procedure will allow certain companies to recover a sales license. Joe Biden will he be more lenient than Donald Trump? We’ll tell you more as soon as possible.
Source : Reuters
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