US Imposes Additional Sanctions on Huawei... Increased Pressure on China Ahead of Quad Meeting

One Day Before the Quad Summit, Increased Pressure on China
Tightening the Noose on Huawei 5G Component Suppliers

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The U.S. Department of Commerce announced that it will impose additional sanctions on companies supplying 5th generation mobile communication (5G) components to Huawei, China’s largest telecommunications equipment manufacturer. This move, made ahead of the first summit of the anti-China coalition Quad, is analyzed to carry more symbolic significance in tightening the reins on a hardline policy toward China rather than the practical effectiveness of the sanctions.

According to foreign media including Bloomberg on the 11th (local time), the U.S. Department of Commerce stated that it will strengthen regulations on companies exporting 5G equipment components to Huawei. While the Department of Commerce did not disclose the specific additional regulations citing confidentiality, Bloomberg reported, citing sources, that the range of items that can be exported to Huawei will be further restricted by this measure. As a result, more companies than before are expected to face export restrictions when dealing with Huawei.

In particular, this measure was taken a day before the first summit of the Quad, an anti-China coalition consisting of the U.S. and Asia-Pacific countries, and is interpreted as a declarative action signaling the continuation of a hardline policy toward China. Huawei has been under sanctions since May 2019 during the Donald Trump administration, and it has already suffered significant damage, with its 5G business and its core smartphone production expected to decrease by 60% compared to the previous year.

Since the Joe Biden administration is expected to continue the Huawei sanctions policy of the previous Trump administration, Huawei’s strategy to try to lift sanctions after the change of U.S. administration is unlikely to succeed. Earlier, the U.S. Federal Communications Commission (FCC) dismissed Huawei’s petition last December, at the end of the Trump administration, requesting reconsideration of the FCC’s previous decision that Huawei poses a threat to U.S. national security. Additionally, the U.S. Congress included a new provision in the 2021 fiscal year National Defense Authorization Act (NDAA) that calls for reconsideration of deploying U.S. troops and major military equipment in countries using 5G technology from Chinese companies such as Huawei.

This content was produced with the assistance of AI translation services.