Trade War Takes a Toll: US Commerce Department Revokes Export Licenses to Huawei Technologies

The US Department of Commerce has revoked several export licenses to Huawei Technologies, including those granted to Intel and Qualcomm for the sale of laptop chips and handheld devices. This decision comes after Huawei released its first AI-powered laptop, the MateBook X Pro, which is powered by Intel’s new Core Ultra 9 processor.

Sources from Reuters revealed that these licenses were granted to Intel and Qualcomm for the sale of laptops and handheld devices. The department did not name the specific companies but stated that several export licenses had been revoked. This decision could negatively impact Huawei’s reliance on Intel chips for laptops, as well as American suppliers doing business with Huawei.

Huawei was placed on the US trade restrictions list in 2019 for security reasons, requiring suppliers to obtain special licenses to trade with the company. Despite this, some American companies have received licenses to sell goods and technology to Huawei over the years. For example, the Trump administration approved Intel to supply central processors to Huawei for use in laptops starting in 2020. Qualcomm also has a license to sell older generation 4G chips to Huawei.

Critics argue that these licenses have contributed to Huawei’s resurgence in the market. Despite US export restrictions, Huawei has launched products equipped with chips from Chinese manufacturers. This has led to increased sales for Huawei in various sectors, including smartphones and smart car components. However, this decision could lead to a decrease in sales for both companies and American suppliers doing business with Huawei due to their reliance on these exports.