Intel, Qualcomm say exports to China blocked as Beijing objects

Intel, Qualcomm say exports to China blocked as Beijing objects is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Intel said its sales would take a hit after after the U.S. revoked some of the chipmaker’s export licenses for a customer in China, in a move Beijing complained was going too far in the name of national security.
• Intel did not reveal the identity of the Chinese customer whose licenses were revoked in its filing with the Securities and Exchange Commission. However, the U.S. has revoked licenses, including those of Intel and Qualcomm, allowing the shipment of chips for laptops and handsets to Huawei Technologies.
• Republican lawmakers criticised the release of Huawei’s MateBook X Pro laptop in April, featuring Intel’s new Core Ultra 9 processor, alleging that it implied approval from the Commerce Department for Intel to supply chips to Huawei.

Intel stated on Wednesday that its revenue would suffer following the U.S. revocation of certain export licenses to a Chinese customer, prompting Beijing to criticise the move as an excessive measure for national security reasons.

Also read: Intel develops the largest neuromorphic computer system

U.S. views Huawei as a threat

Qualcomm said on Wednesday that one of its export licenses for Huawei had been revoked.

“Huawei is a threat,” Commerce Secretary Gina Raimondo told Reuters after a congressional hearing on Wednesday, adding that the move was not a policy change.

“Maybe we have an increased focus on AI. And so when we learn more about AI capabilities, that’s when we have to take action,” she said. “So if a chip that we previously licensed for example, now we discover had AI capabilities, we’re going to revoke the license.”

Also read: Why are Huawei phones banned in the US?

Chinese foreign ministry complains about the policy

The Chinese foreign ministry criticised the U.S.’s recent move to impose restrictions on tech exports, stating it believes the U.S. is stretching the concept of national security and unfairly targeting Chinese companies like Huawei without justification. This action follows the U.S.’s placement of Huawei on a trade restriction list in 2019 over spying concerns. 

President Biden sees these restrictions as essential to impeding China’s technological advancements and has implemented various measures, including export bans and diplomatic efforts, to achieve this goal. Biden has conveyed this strategy to Chinese leader Xi Jinping, framing it as the new normal in the competition between their nations.