The U.S. has also pressured its allies not to purchase Huawei’s 5G networking gear by telling them that Huawei might have placed backdoors into the equipment for spying purposes. Huawei is the world’s largest seller of networking equipment but the U.S. is concerned by the company’s alleged ties to the communist Chinese government.
While Huawei can now purchase chips from U.S. suppliers for its vehicle parts business, the next step needed for the company’s revival would be for Commerce Department to allow the manufacturer to buy the chips it needs to build its handsets. It might not be enough to bring Huawei back to its position as one of the world’s top three phone manufacturers but it is a start.