The United States government has allegedly approved the sale of hundreds of millions of dollars worth of electronic chips to Chinese technology giant Huawei, in a massive reversal of a Trump-era policy by the Biden Administration, as reported by the Daily Caller.
The report was first made by Reuters on Wednesday, which cited two anonymous sources who claimed to be familiar with the deal. Huawei intends to use the new supply of chips to construct more automatic components of automobiles, including video monitors and motion sensors. Huawei allegedly asked the suppliers to raise the value of chips from hundreds of millions to at least one billion for the next sale after the four-year licensing agreement expires.
Huawei, the largest producer of telecom equipment in the world, has not yet issued a statement on the alleged deal; however, a spokesman for the company said that the company intends to position itself “as a new component provider,” that will “build better vehicles” in the future.
However, due to the company’s close ties to the Chinese Communist Party (CCP), the company had faced numerous restrictions and was largely forbidden from doing business with the United States under President Donald Trump. Huawei was designated as a national security threat by the Federal Communications Commission in June 2020, a designation that was upheld by a unanimous vote in December after the company made an appeal.
Despite the reports, a spokesperson for the Department of Commerce said that the government is still enforcing restrictions against Huawei, including restricting its “access to commodities, software, or technology for activities that could harm U.S. national security and foreign policy interests.” Former Commerce Department official Cordell Hull, who served in the Trump Administration, said that such a transaction wouldn’t pose a “huge risk” in and of itself, even though the company itself should still be considered a threat.