U.S. officials have approved license applications for China’s telecom company Huawei to buy chips for its auto component business, Reuters reported.
Earlier, the Donald Trump administration put Huawei, the world’s largest telecom equipment maker, on the blacklist limiting the sale of chips and other components used in its network gear and smartphones businesses. The Biden administration has been reinforcing the hard line on exports to Huawei, denying licenses to sell chips to Huawei for use in or with 5G devices.

The U.S. has granted licenses authorizing suppliers to sell chips to Huawei for such vehicle components as video screens and sensors. The approvals come as Huawei pivots its business toward items that are less susceptible to U.S. trade bans.

The U.S. Department of Commerce spokesperson said the government continues to consistently apply licensing policies “to restrict Huawei’s access to commodities, software, or technology for activities that could harm U.S. national security and foreign policy interests.”

A Huawei spokeswoman said: “We are positioning as a component provider for intelligent connected vehicles, and our aim is to help car OEMs (manufacturers) build better vehicles.”

Huawei’s rotating chairman Eric Xu announced deals with state-owned Chinese carmakers, including BAIC Group, to supply “Huawei Inside”, a smart vehicle operating system, at the Shanghai Auto Show earlier this year.

Richard Barnett, chief marketing officer at a global electronics consultancy called Supply Frame, said Huawei is in the “early innings” of trying to invest in the $5 trillion automotive market that has large potential growth both inside and outside of China.