Infrastructure

US Revokes Export Licences For Supply Of Chips To China’s Huawei

Swarajya Staff

May 08, 2024, 01:02 PM | Updated 01:02 PM IST


The revocation of licences could potentially harm Huawei. (Photo: Alexander Koerner/Getty Images)
The revocation of licences could potentially harm Huawei. (Photo: Alexander Koerner/Getty Images)

The Joe Biden administration said on Tuesday that it had revoked export licences that allow Intel and Qualcomm to supply goods, such as chips, to the sanctioned Chinese telecommunications equipment maker Huawei Technologies.

The move follows Huawei's release last month of its inaugural AI-enabled laptop, the MateBook X Pro, powered by Intel's new Core Ultra 9 processor.

The laptop's launch sparked criticism from Republican lawmakers, who interpreted it as an indication that the Commerce Department had authorised Intel to supply the chip to Huawei.

"We have revoked certain licenses for exports to Huawei," the Commerce Department said in a statement, declining to specify which ones it had withdrawn.

The revocation of these licences could potentially harm Huawei, which relies on Intel chips to power its laptops, and could also impact US suppliers conducting business with the company.

Washington has already imposed stringent restrictions on the sale of US technology to Huawei since the company was added to a US trade restriction list in 2019 due to concerns regarding potential cyber espionage activities.

Being added to the list means Huawei's suppliers have to obtain a special, challenging-to-obtain licence before shipping goods to the company.

However, Republican lawmakers have urged President Biden to take even harsher measures against the Chinese company, citing concerns about Huawei's capability to develop advanced chips despite extensive export controls implemented in 2022.

In a letter last month, Marco Rubio, the Republican vice-chair of the Senate intelligence committee, and Elise Stefanik, the fourth-ranking Republican in the House of Representatives, urged Raimondo to revoke Huawei licences. This came after reports surfaced that the Shenzhen-based group had manufactured laptops using Intel chips.

“It is clear from these trends that Huawei, a blacklisted company that was on the ropes just a few years ago, is making a comeback,” the lawmakers wrote in their letter.

After the release of the letter, Intel said it “strictly complies with all the laws and regulations in the countries where we do business”.


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