Beijing Objects to Exports to China, Blocking Intel and Qualcomm

Intel’s sales to take a hit after U.S. revokes export licenses for China

In a move that has sparked controversy, Intel announced on Wednesday that its sales would be impacted after the U.S. revoked some of the chipmaker’s export licenses for China. Beijing has complained that the decision goes too far in the name of national security.

The specific Chinese customer whose licenses were canceled was not disclosed by Intel in its filing with the Securities and Exchange Commission. However, Reuters had previously reported that the U.S. had revoked licenses that allowed companies like Intel and Qualcomm to ship chips used for laptops and handsets to sanctioned Chinese telecoms equipment maker Huawei Technologies.

The release of Huawei’s first AI-enabled laptop in April, powered by Intel’s new Core Ultra 9 processor, drew criticism from Republican lawmakers who questioned the Commerce Department’s approval of the sale. This controversy has led to a 3% drop in Intel’s shares, which were trading at $29.77 on Wednesday afternoon.

Qualcomm also revealed that one of its export licenses for Huawei had been revoked, causing its shares to remain flat.

Commerce Secretary Gina Raimondo defended the decision, stating that Huawei poses a threat and that the move was not a change in policy. The Chinese foreign ministry, on the other hand, criticized the U.S. for over-stretching the concept of national security and abusing export controls to suppress Chinese companies without justification.

The restrictions on Huawei are part of President Joe Biden’s efforts to deny China access to sensitive technology in order to thwart Beijing’s technological advances. This move is seen as a continuation of the competition between the two nations with different political systems.

Overall, the revocation of export licenses for China has sparked a heated debate between the U.S. and China, with both sides standing firm on their positions.