- Move could hurt Huawei's laptop business and US suppliers
- Tensions between US and China continue to escalate.
The US Department of Commerce has revoked certain licenses that allowed American chip makers to export specific goods to Chinese tech giant Huawei, in a move that further tightens trade restrictions on the company. The announcement comes after Huawei launched an AI-enabled computer powered by a chip created by Intel, a US-based chip maker.
The US has been restricting technology exports to Huawei since 2019, citing alleged ties to the Chinese military. The company was added to the US “entity list” during the presidency of Donald Trump, requiring US companies to obtain a license to export or transfer certain technologies to Huawei.
While some licenses have been granted to US companies like Intel and Qualcomm to supply Huawei with non-5G related technology, the latest move marks a significant escalation in the trade tensions between the US and China. The revocation of licenses is seen as a response to Huawei’s recent resurgence, particularly after the launch of its Mate 60 Pro smartphone in August.
US lawmakers have been critical of the Biden administration’s handling of Huawei, with some accusing it of being too soft on the company. Republican Congresswoman Elise Stefanik welcomed the move, stating that the administration would not have taken this action without Republican pressure.
Huawei has been hit hard by US trade restrictions, but has been working to develop its own technology and reduce its dependence on US suppliers. The company has also been exploring alternative markets and partnerships to mitigate the impact of US sanctions.
The move is part of a broader trend of US restrictions on Chinese technology firms, with tensions between the two countries intensifying in recent years. Earlier this month, President Biden signed a law that could ban the video app TikTok in the US unless it is sold by its Chinese parent company. TikTok filed a lawsuit on Tuesday to block the legislation, arguing that it is unconstitutional.
Beijing has condemned Washington’s moves against its companies, describing them as “economic bullying.” The Chinese government has been working to promote its own technology sector and reduce its dependence on US technology, as the trade tensions between the two countries continue to escalate.
