US Revokes Licenses for Chip Exports to Huawei
The US government has announced the revocation of certain licenses allowing American chip makers to export goods to Huawei, the Chinese tech giant.
The Department of Commerce didn't specify which licenses were canceled, but this move followed Huawei's introduction of an AI-powered computer featuring an Intel chip.
FirstFT: US revokes licences for chip exports to Huawei https://t.co/qlJsEc8a9W
— FT Economics (@fteconomics) May 8, 2024
Source: Twitter/FT Economics
Intel, the American chip maker, chose not to comment when approached by BBC News. The BBC has reached out to Huawei and Qualcomm, a San Diego-based chip giant, for their reactions to the announcement.
Since 2019, the US has restricted technology exports, including computer chips, to Huawei, citing concerns over alleged ties to the Chinese military. The Commerce Department confirmed the revocation of some licenses for exports to Huawei on Tuesday, without providing further details.
Political Response to Huawei Actions
Republican Congresswoman Elise Stefanik took to social media to assert that the recent action by the Biden Administration concerning Huawei wouldn't have occurred without accountability from Republicans in Congress.
Huawei has encountered significant challenges due to US trade restrictions but has recently demonstrated signs of resurgence, particularly with the launch of the Mate 60 Pro smartphone in August.
During Donald Trump's presidency in 2019, US officials placed Huawei on the "entity list," mandating US companies to obtain government licenses for certain technology exports to prevent their use by the Chinese military.
However, some US companies, such as Intel and Qualcomm, were granted licenses during this period to supply Huawei with non-5G related technology.
US-China Tech Tensions
In recent years, the US has imposed restrictions on numerous Chinese technology companies amid escalating tensions between the world's top two economies.
President Biden recently signed legislation that could potentially lead to the ban of the video app TikTok in the US unless it is divested by its Chinese parent company.
TikTok responded by filing a lawsuit on Tuesday to challenge the law. Beijing has criticized Washington's actions against its companies, labeling them as 'economic bullying'.
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