Strengthen Huawei Export Controls, Licensing Policies, Lawmaker Tells BIS

The Bureau of Industry and Security should “significantly” strengthen export controls against Huawei to further restrict the Chinese technology company from buying U.S.-origin items, Rep. Michael McCaul, R-Texas, said in a March 6 letter to the agency. Although McCaul applauded its use of the Entity List and the foreign direct product rule to “curtail Huawei’s unconstrained march to dominate 5G telecommunications systems globally,” he said more should be done.

McCaul pointed to the BIS licensing data he released in 2021, which showed BIS approved more than a combined $100 billion worth of export licenses for shipments to Huawei and Chinese top chipmaker SMIC from Nov. 9, 2020, through April 20, 2021 (see 2110210073). That data “suggests BIS’s use of export controls towards Huawei must be strengthened significantly, as the company can still buy significant amounts of U.S. technology,” he said.

BIS should provide McCaul and the House Foreign Affairs Committee, which he chairs, a “clarification of the Biden Administration’s licensing policy regarding Huawei,” he said. McCaul specifically asked whether the administration has “halted” new export licenses for Huawei. The Financial Times in January reported the administration notified companies it would no longer approve license applications for technology shipments to Huawei, moving toward a “total ban” on U.S. sales to the Chinese telecommunications company (see 2301310009).

If BIS has a new licensing policy for Huawei, the agency should provide the lawmaker information on whether current licenses will be revoked, whether certain licenses will remain in effect or renewed, and the “duration and monetary value” of those licenses, he said. McCaul also asked BIS to explain when it will “conclude” its assessment of its Huawei licensing policies. “We look forward to your prompt responses,” the lawmaker said.

A BIS spokesperson didn’t comment.