The US government has stopped giving more permission for the Chinese company Huawei to buy certain chips used in computers and mobile devices. The Financial Times (FT) says that the US Department of Commerce took back some licenses for exports to Huawei. They didn’t mention which companies these licenses were for.
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People who know about this say that Intel and Qualcomm, two American companies, are among those who had licenses for selling chips to Huawei. Huawei has been facing restrictions for some years now. This includes limits on buying chips from US companies like Intel and Qualcomm. But not all kinds of chips were restricted until now.
For example, Huawei could still buy LTE modem chips from Qualcomm in recent years. But they couldn’t buy chips for 5G technology. There has been a lot of political pressure in the US to put more sanctions on Chinese companies. It seems like President Joe Biden’s government has agreed to this pressure now.
China Accuses USA of “Economic Coercion”
“We continually evaluate how our controls can best protect our national security and foreign policy interests, taking into account the ever-changing threat landscape and the technological landscape,”
Explains a spokesman for the ministry.
The Chinese Ministry of Commerce doesn’t agree with the decision and accuses the US government of “economic coercion”. They say they will do whatever it takes to protect the rights of Chinese companies.
There’s been more pressure from politics, especially because Huawei has been doing well lately. In the first part of 2024, Huawei got a big share of the market in China. They got 15.5%, just a bit less than Apple with 15.7%. Also, Huawei surprised experts by putting its own chips in another smartphone.
Huawei is still selling laptops with Intel chips. The US companies involved have been told about the decision, but Intel didn’t say anything about it. Qualcomm and Huawei didn’t answer questions from the Financial Times.
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