The U.S. government revoked licenses for exporting goods to Huawei, the Chinese telecommunications equipment maker. This move comes after the release of Huawei's first AI-enabled laptop, the MateBook X Pro, which is powered by Intel's new Core Ultra 9 processor. Republican lawmakers criticized the Commerce Department for allowing Intel to sell the chip to Huawei.
The license revocation could hurt Huawei, which relies on Intel chips for its laptops. It could also hurt U.S. suppliers that do business with Huawei. Huawei was placed on a U.S. trade restriction list in 2019 due to concerns that it could spy on Americans. This is part of a broader effort to limit China's ability to bolster its military.
Despite the restrictions, Huawei has received billions of dollars in licenses to sell goods and technology. This includes a controversial authorization from the Trump administration that allowed Intel to ship central processors to Huawei for its laptops since 2020. Qualcomm has also sold older 4G chips to Huawei since receiving a license from U.S. officials in 2020.
Critics argue that these licenses have contributed to Huawei's resurgence. The company shocked the industry in 2023 with a new phone powered by a sophisticated chip manufactured by Chinese chipmaker SMIC, despite U.S. export restrictions on both companies. This phone helped Huawei smartphone sales spike 64% year-on-year in the first six weeks of 2024.