Huawei, SMIC suppliers received billions worth of licenses for U.S. goods

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WASHINGTON, Oct 21 (Reuters) – Suppliers to Chinese language telecoms large Huawei and China’s prime chipmaker SMIC acquired billions of {dollars} price of licenses from November via April to promote them items and know-how regardless of their being on a U.S. commerce blacklist, paperwork launched by Congress confirmed on Thursday.

In keeping with the paperwork, first obtained by Reuters, 113 export licenses price $61 billion have been accredited for suppliers to ship merchandise to Huawei (HWT.UL) whereas one other 188 licenses valued at almost $42 billion have been greenlighted for Semiconductor Manufacturing Worldwide Corp (SMIC) .

The info additionally confirmed that greater than 9 out of 10 license purposes have been granted to SMIC suppliers whereas 69% of requests to ship to Huawei have been accredited over the identical interval.

The U.S. Home of Representatives Overseas Affairs committee on Thursday voted to grant a request by its prime Republican member Michael McCaul to launch the licensing information, which it acquired from the Commerce Division in Might.

The numbers enraged China hawks in Washington, who’ve made a concerted effort to deprive Chinese language corporations of entry to superior U.S. know-how.

Republican senator Marco Rubio advised Reuters he thinks President Joe Biden wants to clarify why the businesses have continued to obtain “waivers.”

“It’s simply one other instance of President Biden not taking the financial and safety menace posed by the Chinese language Communist Get together significantly,” he stated.

McCaul stated in an announcement that “It is clearly in our nationwide curiosity to extend transparency and public scrutiny on how our nation transfers its know-how to an adversary,”


Nonetheless, the Commerce Division stated that the discharge of an “arbitrary snapshot” of license approvals “dangers politicizing the licensing course of and misrepresenting the nationwide safety determinations” made by the federal government.

It additionally harassed that accredited license purposes don’t characterize precise shipments and round half of all licenses are used. It added that license purposes involving Huawei and SMIC are processed below insurance policies developed by the Trump administration and maintained by the Biden administration.

A former senior Commerce Division official within the Trump administration who declined to be named echoed the company’s view.

“This very small interval of license exercise is just not an correct window into the Huawei and SMIC license course of,” he stated, noting that the aim of stopping the businesses from acquiring vanguard know-how with out unnecessarily harming U.S. exports of different items had been profitable. “This [document release] appears designed to mislead folks and generate headlines,” he added.

Huawei declined to remark, whereas SMIC didn’t reply to a request for remark.

Huawei was positioned on a commerce blacklist in Might 2019 over nationwide safety considerations, forcing its U.S. suppliers and others to acquire a particular license to ship items to it. SMIC was added to the so-called entity record in December 2020, over fears it may divert superior know-how to army customers.

A majority of the licenses granted didn’t authorize shipments of delicate gadgets. Of the 113 licenses accredited for Huawei through the interval, 80 have been for non-sensitive items that solely required a license as a result of the recipient was blacklisted. For SMIC, the determine was 121 of 188.

Licenses are typically good for 4 years.

Reuters reported earlier this yr that, through the Trump administration, $87 billion price of for Huawei have been accredited after it was blacklisted.

Reporting by Karen Freifeld and Alexandra Alper, Modifying by Chris Sanders and Rosalba O’Brien


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