The US has revoked eight licenses this year, which previously allowed certain companies to export goods to Huawei in an attempt to exert pressure on the Chinese telecom giant. Earlier in May, the Commerce Department announced that it had revoked some licenses but did not specify the details.

The development occurred as Republican hardliners in Congress pushed to intensify measures against Huawei, which surprised the industry last August with a new phone featuring an advanced chip from Chinese manufacturer SMIC despite US export restrictions. The phone boosted Huawei's smartphone sales by 64% in the first six weeks of 2024. Additionally, Huawei's smart car components business has driven its fastest revenue growth in four years during 2023.

These details highlight the Biden administration's efforts to hinder Huawei's recovery despite previous measures aimed at weakening the company on national security grounds. Meanwhile, Huawei continues to deny being a security threat.

Why does this matter?

Such license revoking measures can be located as a part of the larger tech war intensification between the US and China, especially concerning chip market dominance. With the race between the two superpowers set to continue, it'll cost the global economy enormously with a loss of trade revenue.