It all started in 2019 when the United States government put HUAWEI on a trade blacklist, which meant that US-based companies will have to get a special license to continue exporting products to the Chinese tech giant.
That led to HUAWEI phones and tablets losing 5G connectivity and being stuck with 4G LTE and WiFi 6 — even on their flagship devices, even the HUAWEI P50 and Mate 50 Pro.
US companies like Qualcomm, AMD, and Intel managed to be granted a license to sell 4G-only chipsets to HUAWEI. However, that may end soon, as sources say that the US government is thinking of further expanding the band products.
It is said that the government is thinking of also banning US companies from exporting 4G, WiFi 6, and WiFi 7 tech related to AI, as well as high-performance and cloud computing to HUAWEI.
In fact, an insider said that new licenses for 4G exports are already being denied.
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Meanwhile, for existing and old licenses, an expert said that the Commerce Department is already on the move to revoke them.
What’s more, it’s been reported that Japan and the Netherlands will also follow suit as it will also ban its local companies from exporting related products to China.
It’s no surprise that HUAWEI experienced a major drop in revenue in 2021. Albeit, they managed to keep it stable in December 2022.
Source: Reuters