Global Economy

US Revokes Export Licenses for Suppliers to China’s Huawei

The United States has taken a significant step by revoking certain licenses that permit companies to export goods, including chips, to Huawei Technologies, a sanctioned Chinese telecommunications giant. The move, effective immediately for some companies, follows the recent launch of Huawei’s MateBook X Pro, an AI-enabled laptop featuring Intel’s new Core Ultra 9 processor. This action comes in response to concerns raised by Republican lawmakers, who criticized the perceived authorization for Intel to supply chips to Huawei, suggesting potential national security risks.

The decision by the US Department of Commerce, though not specifying which licenses were withdrawn, reflects intensified pressure from Republican China hawks in Congress urging tougher measures against Huawei. Republican Congresswoman Elise Stefanik emphasized the move’s significance in bolstering national security and curbing China’s technological advancement. While the revocation of licenses could impact Huawei’s access to Intel chips for its laptops, it may also affect US suppliers engaged in business with the company.

Huawei, placed on a US trade restriction list in 2019, faces challenges in sourcing components due to the licensing requirements imposed by the US government. Despite restrictions, Huawei has obtained licenses worth billions of dollars for procuring goods and technology. However, critics argue that such licenses have contributed to Huawei’s resilience, evident in its recent surge in smartphone sales and growth in the smart car component business. The move to revoke licenses reflects ongoing efforts to navigate national security concerns amid the complex dynamics of US-China relations.