US revokes licenses for sales of chips to Huawei

The US government has recently intensified its crackdown on technology exports like chips to Huawei, the Chinese technology behemoth, by revoking specific licenses that previously allowed American chipmakers to supply critical components and technology.

This move, announced by the Department of Commerce, did not clarify which particular licenses were revoked.

However, this decision comes in the wake of Huawei unveiling a new AI-driven computer that employs a chip developed by U.S. tech giant Intel.

Intel, when approached for comments by BBC News, chose not to respond to inquiries regarding this latest development.

BBC News also reached out to Huawei and another leading chip manufacturer, Qualcomm, seeking their perspectives on these fresh restrictions, but responses were pending at the time of reporting.

Since 2019, the U.S. administration has maintained a stringent policy against Huawei, alleging that the company has ties with the Chinese military, and hence posing a national security threat.

This policy includes restricting the export of crucial technology like computer chips to Huawei.

The Commerce Department reiterated its stance in a recent statement: “We have revoked certain licenses for exports to Huawei,” without divulging further details about the specific licenses affected.

This enforcement action follows critical remarks from some U.S. lawmakers who voiced their discontent with the Biden administration’s policies after Huawei launched its MateBook X Pro laptop last month. Republican Congresswoman Elise Stefanik was notably vocal, asserting on social media, “Make no mistake, the Biden Administration would not have taken this action if Republicans in Congress were not holding them accountable.”

Despite facing significant hurdles due to U.S. trade restrictions, Huawei has demonstrated resilience and an ability to recover, particularly noted with the recent launch of its Mate 60 Pro smartphone in August, which marked a strong comeback in the global tech market.

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Back in 2019, during the tenure of President Donald Trump, Huawei was placed on the so-called “entity list,” a decision that required U.S. companies to obtain government licenses to export or transfer certain technologies to Huawei.

This was primarily due to concerns that these technologies could potentially be used by the Chinese military.

However, despite these restrictions, some licenses were issued to U.S. companies like Intel and Qualcomm, permitting them to supply Huawei with non-5G related technology.

The broader context of these actions includes escalating tensions between the U.S. and China, the world’s two largest economies, which have been at odds over technological and economic dominance.

This has resulted in the U.S. imposing restrictions on several Chinese technology firms over the years.

Adding to the intensity of these geopolitical frictions, earlier this month President Biden enacted legislation that could lead to the ban of the popular video app TikTok in the U.S. unless it is divested from its Chinese parent company.

In response, TikTok has initiated legal proceedings to challenge the legislation, marking another chapter in the ongoing techno-political skirmishes between the two nations.

Beijing has consistently criticized the U.S. government’s actions against its tech companies as “economic bullying,” a term that underscores the perceived aggression and strategic containment from the U.S. side.

This ongoing conflict reflects not only the complexities of international trade and national security but also highlights the deep-seated strategic rivalry that continues to shape the technology landscape globally.

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