[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 24th (local time) that the U.S. government recently eased sanctions on the Chinese telecommunications equipment company Huawei, allowing Huawei to purchase semiconductors necessary for electric vehicle parts from American companies. According to sources, Huawei purchased semiconductors worth hundreds of millions of dollars.
Huawei was placed on the U.S. Department of Commerce's blacklist in 2019 during the Donald Trump administration. Former President Trump explained that the sanctions were due to Huawei posing a threat to U.S. security. Without U.S. government approval, American companies were prohibited from selling products or technology to Huawei. The U.S. further tightened sanctions on Huawei last year, and the Biden administration continues to maintain these sanctions.
Huawei has been unable to receive semiconductor supplies for telecommunications equipment from U.S. companies and has also been denied Android smartphone technology support from Google.
As a result, Huawei abandoned Android and unveiled its own smartphone operating system (OS) called 'Hongmeng' (English name Harmony), which it developed independently.
Meanwhile, due to U.S. sanctions, Huawei's core businesses of smartphones and telecommunications equipment have faced difficulties, prompting the company to enter other sectors such as electric vehicles. At the Shanghai Motor Show in April this year, Huawei revealed its first autonomous vehicle, the 'Arcfox αS HI,' developed in cooperation with its electric vehicle subsidiary Beijing Auto New Energy.
The products that the U.S. has permitted Huawei to purchase are known to be semiconductors used in automotive video screens and sensors. Semiconductors used in automotive parts are relatively simple and can more easily obtain approval from the U.S. government.
A U.S. Department of Commerce official stated that sanctions continue to be imposed to prevent Huawei from accessing products, software, and technologies that could affect U.S. national security and foreign policy interests. However, the official declined to specify which items are approved or denied.
A Huawei spokesperson expressed that the company is striving to establish itself as a supplier in the smart car sector.
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