SMIC supplier Huawei has licensed US products worth billions of dollars – document

Texas News Today

The Huawei logo is drawn on July 22, 2019 in the Manhattan area of ​​New York, NY, USA. Reuters / Carlo Allegri / Files

21 October 2021

Karen Freifeld and Alexandra Alpero

WASHINGTON (Reuters) – Suppliers of China’s telecommunications giant Huawei and Chinese top chip maker SMIC awarded licenses worth billions of dollars between November and April, despite being on a US trade blacklist. , sold goods and technology.

According to the document, 113 export licenses valued at $61 billion have been granted to suppliers to ship products to Huawei, and another 188 licenses worth about $42 billion have been granted to Semiconductor Manufacturing International Corp (SMIC). Accepted.

The data also shows that more than 9 out of 10 license applications were made to SMIC suppliers and 69% of shipping requests to Huawei were approved in the same period.

On Thursday, the House of Representatives’ Foreign Affairs Committee voted to allow top Republican member Michael McCall to request disclosure of license data he received from the Commerce Department in May.

At Reuters’ request, the commission’s Republicans provided the document to Reuters after approval. The document will be published soon.

This number may enrage Chinese hawks in Washington. They have worked together to deny Chinese companies access to advanced American technology.

“It is clearly in our national interest to increase transparency and public surveillance of how our country transfers its technology to the enemy,” McCall said in a statement. ..

Republican Senator Marco Rubio told Reuters that President Joe Biden thinks he needs to explain why companies continue to “exempt”.

“This is another example of President Biden not taking seriously the economic and security threat posed by the Chinese Communist Party,” he said.

The commerce ministry said in a statement that releasing any snapshot of the licensing approval was “risk of politicizing the licensing process and misrepresenting national security decisions” made by the government.

He also emphasized that the approved license application does not represent the actual shipment and that about half of all licenses are used. He added that license applications involving Huawei and SMIC will be processed under a policy developed by the Trump administration and maintained by the Biden administration.

Huawei declined to comment, but SMIC did not respond to a request for comment.

Huawei was blacklisted in May 2019 due to national security concerns and was forced to obtain a special license to ship goods to US suppliers and others. The SMIC was added to the so-called unit list in December 2020, fearing the possibility of a diversion of advanced technology to military users.

Most of the licenses granted did not permit the shipment of sensitive goods. Of the 113 licenses granted by Huawei during this period, 80 were for sensitive goods that required a license only because the recipient was blacklisted. For SMIC the number was 121 out of 188.

The license is usually valid for 4 years.

Reuters licensed $87 billion during the Trump administration – approved after Huawei’s idUSKBN2B3336 was blacklisted.

(Reporting by Karen Freifeld and Alexandra Alper, edited by Chris Sanders and Rosalba O’Brien)

SMIC supplier Huawei has licensed US products worth billions of dollars – document

Source link Huawei, a supplier of SMIC, has licensed US products worth billions of dollars – Documents

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