The United States has recently revoked licenses that allowed companies to ship goods, such as chips, to Huawei Technologies, a sanctioned Chinese telecommunications equipment maker. Some companies were notified on Tuesday that their licenses were immediately revoked. This move follows the release of Huawei’s first AI-enabled laptop, the MateBook X Pro, which drew criticism from Republican lawmakers who accused the US Department of Commerce of approving the sale of Intel chips to Huawei.
The Commerce Department confirmed the revocation of certain export licenses to Huawei but did not specify which ones were withdrawn. This decision was made in response to pressure from Republican lawmakers who have been pushing the Biden administration to take tougher action against Huawei.
The revocation of these licenses could potentially harm both Huawei, which relies on Intel chips for its laptops, and US suppliers that do business with the company. A spokesperson for Intel declined to comment on the matter, while Huawei did not immediately respond to requests for comment.
Huawei was placed on a US trade restriction list in 2019 due to concerns about potential spying on Americans. Suppliers to Huawei have previously received licenses to sell goods and technology to the company, including controversial authorizations issued by the Trump administration.
Qualcomm, for example, has sold older 4G chips to Huawei under a license granted in 2020. However, Qualcomm does not expect to generate more chip revenue from Huawei beyond this year. Qualcomm also licenses its portfolio of 5G technologies to Huawei, with negotiations underway to renew the deal.
Critics argue that these licenses have contributed to Huawei’s resurgence in the industry. Despite US export restrictions, Huawei has managed to boost its smartphone sales and smart car component business. The company’s revenue growth has been impressive, with its fastest growth in four years recorded in 2023.