The Biden administration has tightened the noose around Huawei’s phone business, restricting access to older technology.
Huawei was once one of the biggest smartphone makers in the world and looked poised to dominate the industry for years. Concerns over its association with the Chinese government was its undoing, with the US and its allies imposing sanctions and bans on the company. As a result, Huawei’s phone business was virtually ruined.
Despite being cut off from more advanced technology, the company was still allowed to purchase older tech from US companies. It appears that door has now slammed shut, according to Reuters, with the US government banning the company from buying most of the remaining tech it still had access to.
According to the report, Huawei is now effectively cut off from US-based tech, including “4G items, Wifi 6 and 7, artificial intelligence, and high-performance computing and cloud items.”
The Commerce Department would not confirm or deny the report. If it is true, however, it would deal a major blow to Huawei’s phone business, as well as its other endeavors.
Huawei has been pivoting to other industries, especially ones that do not rely so heavily on US tech, such as software and cloud computing. The company has also explored the possibility of entering the electric vehicle market.
With the US tightening restrictions, however, Huawei may soon find its other ventures under the same kind of pressure its phone business experienced.