US revokes some export licenses from China’s Huawei – South China Morning Post

The United States said Tuesday it has revoked some licenses allowing companies to ship goods, such as chips, to sanctioned Chinese telecommunications equipment maker Huawei Technologies.

The move comes after the release last month of Huawei’s first AI-enabled laptop, the MateBook X Pro, powered by the new Intel Core Ultra 9 processor.

The laptop’s launch drew criticism from Republican lawmakers, who suggested the U.S. Commerce Department had given Intel the green light to sell the chip to Huawei.

The revocations come after a years-long review of U.S. policy on what U.S. goods and technology can be shipped to Huawei, a flagship Chinese company considered a national security threat.

They could hamper Huawei’s recent revenue rebound and also hurt U.S. suppliers who have been allowed to do business with the company.

“We continually evaluate how our controls can best protect our national security and foreign policy interests, taking into account an evolving threat environment and technology landscape,” the Commerce Department said in a statement.

“We do not comment on any specific licenses, but we can confirm that we have revoked certain export licenses to Huawei.”

An Intel spokesperson declined to comment. Qualcomm, whose chips are found in Huawei phones, could not immediately be reached for comment.

Some businesses were informed Tuesday that their licenses were being revoked effective immediately, according to a person familiar with the matter.

Huawei did not immediately comment on the US Commerce Department’s decision.

The company was placed on a U.S. trade restriction list in 2019 over concerns it could spy on Americans, part of a broader effort to handicap China’s ability to build up its military. Being added to the list means the company’s suppliers must seek a special, hard-to-obtain license before shipping.

Despite this, Huawei suppliers have received licenses worth billions of dollars to sell Huawei products and technologies, including a particularly controversial authorization, issued by the Trump administration, which allowed Intel to ship central processors to Huawei to use them in its laptops since 2020.

At the same time, sources said few new license applications for Huawei had been granted in more than a year.

Huawei shocked the industry last August with a new phone powered by a sophisticated chip made by Chinese chipmaker SMIC, despite U.S. export restrictions on both companies.

The phone helped Huawei smartphone sales increase 64% year-on-year in the first six weeks of 2024, according to research firm Counterpoint.

The recovery of Huawei, which last year recorded its fastest revenue growth in four years, has also been accelerated by new businesses such as smart car components.