ALBAWABA - The United States has withdrawn licenses which allow let firms that include Intel and Qualcomm to provide laptop and smartphone processors to sanctioned Chinese telecom devices maker Huawei, Reuters reports citing sources aware of the situation.
Earlier on Tuesday, the US Commerce Department disclosed that certain licenses had been withdrawn without specifying the companies’ involved in the decision, Intel however has stated in an SEC filing that its license to export consumer products to a certain customer in China was revoked, causing a 2 percent drop in its share price.
"We have revoked certain licenses for exports to Huawei," the Commerce Department stated, with Republican Congresswoman Elise Stefanik saying that “this action will bolster U.S. national security, protect American ingenuity, and diminish Communist China’s ability to advance its technology.”
Huawei, which recently unveiled its Pura 70 series featuring Chinese made Kirin 9000s, still depends heavily on Intel for chips that power its laptop computers and this decision could potentially hurt the firm.
Additionally, Intel has been experiencing low demand for its conventional PC and data center CPUs. Its stock value dropped by $11 billion last month as a result of its second-quarter sales and profit forecasts being lower than the market expected.
"China resolutely opposes the United States overstretching the concept of national security and abusing export controls to suppress Chinese companies without justification," the Chinese foreign ministry commented in a statement.
