US eyes banning supply of American chips to China

The US is reviewing existing licenses for exporting items to Huawei Technologies Co. as Washington intensifies a crackdown on Chinese companies amid growing tensions between the world’s two largest economies, Report informs referring to Bloomberg.

“The licensing rule from the previous administration, that still stands for Huawei - allows things below 5G, below cloud level, to go - and I will say that all those things are under assessment,” Alan Estevez, the undersecretary of Commerce overseeing the Bureau of Industry and Security, said during a House Foreign Affairs committee hearing.

The Biden administration is considering cutting off Huawei from all of its American suppliers, including Intel Corp. and Qualcomm Inc.

Sales from US firms to Huawei have been limited for four years, since former President Donald Trump added the Shenzhen, China-based company to the so-called US “entity list” out of national-security concerns. US suppliers have since required government approval to sell to the Chinese telecom equipment giant.