US Revokes Licenses for Exports to China’s Huawei
The United States has rescinded several licenses permitting exports to Huawei Technologies, the Chinese telecom giant currently under sanctions with immediate effect, Excel Magazine International can report.
This development was confirmed by sources familiar with the matter on Tuesday.
Excel Magazine International was informed that the decision follows the recent unveiling of Huawei’s AI-enabled MateBook X Pro, featuring Intel’s new Core Ultra 9 processor, which sparked controversy among U.S. lawmakers.
Critics, including Republican members of Congress, argued that the product launch indicated an undue leniency from the U.S. Department of Commerce, allowing Intel to supply critical technology to Huawei despite existing sanctions.
In response to these concerns, the Commerce Department stated, “We have revoked certain licenses for exports to Huawei,” without detailing the specific licenses affected.
This action, initially reported by Reuters, aligns with increased pressures from Republican legislators advocating for a more stringent approach to Huawei, a company they view as a threat to national security and American technological leadership.
Representative Elise Stefanik emphasized the significance of the revocations, saying, “This action will bolster US national security, protect American ingenuity, and diminish Communist China’s ability to advance its technology.”
The revoked licenses could have significant repercussions for Huawei, which relies on Intel chips for its laptop production.
The impact could also extend to U.S. suppliers engaged in business with Huawei, potentially disrupting their operations and financial stability.
Huawei was added to the U.S. trade restriction list in 2019, amid concerns that it could facilitate espionage activities against Americans, and as part of a broader strategy to impede China’s military enhancements.
Suppliers to Huawei, therefore, must obtain a special license, which is challenging to secure, to conduct any business with the company.
Despite these restrictions, Huawei and its suppliers, including Qualcomm and Intel, have navigated the complexities of U.S. sanctions to maintain a level of cooperation.
For instance, Qualcomm has been supplying older 4G chips for Huawei handsets since 2020 under a U.S.-approved license.
However, this partnership is expected to conclude this year, with Qualcomm also licensing its 5G technologies to Huawei, which recently began using a 5G chip likely manufactured in contravention of U.S. sanctions.
This tightening of export controls comes as Huawei shows signs of business recovery, evidenced by a surge in smartphone sales following the release of a new model equipped with a sophisticated chip produced by SMIC, another Chinese firm under U.S. restrictions.
This resurgence is further bolstered by Huawei’s expanding smart car component sector, contributing to the company’s fastest revenue growth in four years in 2023.
