The United States has revoked several export licenses that allowed companies like Qualcomm to supply Chinese technology giant Huawei, as confirmed by the Department of Commerce on Wednesday. This move increases pressure on Huawei, which has been a focal point in the technological rivalry between Beijing and Washington over concerns of Chinese espionage activities.
The measure was prompted by Republican lawmakers urging President Joe Biden’s administration to block all export licenses to Huawei following the release of a new computer equipped with a chipset from US chip giant Intel. The Department of Commerce stated that they continually evaluate controls to protect national security interests, leading to the revocation of certain export licenses to Huawei.
The 2019 sanctions limiting Huawei’s access to American-made components severely impacted their smartphone production and required suppliers to obtain licenses before shipping to the company. Qualcomm confirmed the revocation of certain export licenses for Huawei, stating their commitment to complying with export control regulations.
In response, the Chinese Ministry of Commerce expressed firm opposition to the US export restrictions, calling them economic coercion and vowing to safeguard the rights of Chinese companies. Republican lawmakers criticized the collaboration between Huawei, Intel, and Qualcomm in the new product, highlighting concerns about American technology in Huawei’s offerings.
Intel did not respond to queries, and Qualcomm shares fell slightly following the news. Qualcomm indicated that they do not expect revenue from Huawei products beyond the current year, citing factors such as potential denials of new licenses by the Commerce Department and Huawei’s efforts in developing devices with their chip products.
Last year, House Foreign Affairs Committee chairman Michael McCaul called for stronger export controls on Huawei, noting that the company can still procure significant amounts of American technology. The ongoing saga underscores the complex and contentious relationship between Huawei, US companies, and government regulations in the midst of escalating tensions between the two global powers.