The Biden administration has taken another step in increasing pressure on Chinese technology giant, Huawei. The US Department of Commerce has revoked export licenses that allow Intel and Qualcomm to supply semiconductors to Huawei, affecting the supply of chips for Huawei’s laptop computers and mobile phones.
This move comes as Washington aims to restrict the sale of US technology to Huawei due to concerns raised by national security officials about the company’s alleged involvement in cyber espionage. The Chinese telecoms company has repeatedly denied these claims.
The revoking of export licenses signifies the serious approach that the US government is taking towards what it perceives as national security threats from Chinese technology. It is an indication that the Biden administration will continue the hardline stance against Huawei, with any subsequent administration expected to do the same.
The action by the US government is significant as it demonstrates the extent to which they are willing to go to protect their national security interests. However, critics argue that the licenses should never have been granted in the first place, and that the Biden administration needs to be proactive in denying Chinese companies critical technologies.
The move comes amidst concerns about Huawei’s ability to develop advanced chips despite existing export controls. Last year, when US commerce secretary Gina Raimondo visited China, Huawei released the Mate 60 Pro smartphone, which featured an advanced chip that surprised experts.
Lawmakers, including Marco Rubio and Elise Stefanik, have urged the commerce department to take a tougher stance on Huawei, expressing concern about the Chinese group’s access to US technology. The Republican lawmakers argue that the Biden administration should be proactive rather than reactive when it comes to dealing with the threat posed by Chinese companies.
While the US government’s actions may be viewed as a necessary step to protect national security, critics argue that they violate the principles of fair competition and disrupt global industrial and supply chains. The Chinese embassy in Washington has criticized the move, labeling it as “economic bullying.”
The potential implications of the US’s revocation of export licenses for Intel and Qualcomm are significant. It not only impacts the supply chain for Huawei’s laptop computers and mobile phones but also raises questions about the future relationships between US technology companies and Chinese counterparts.
This action could serve as a catalyst for other countries to tighten their restrictions on exports of chip-related technology to China. The FT previously reported that the US had been urging its allies in Europe and Asia to enhance restrictions on chip-related exports due to growing concerns about Huawei.
These trends may disrupt and destabilize global industrial and supply chains, leading to increased decoupling between the US and China, as well as potentially impacting the wider global economy.
In conclusion, the revocation of export licenses by the US Department of Commerce targeting Intel and Qualcomm has further escalated tensions between the US and Huawei. It showcases the US government’s determination to protect national security interests and restrict the flow of critical technologies to Chinese companies. The implications of this move extend beyond Huawei, potentially impacting the relationships between US and Chinese technology firms and affecting global industrial and supply chains. The future trends in this space will be shaped by how the US and its allies further respond to the evolving challenges posed by Chinese technology companies.