US Lawmakers Furious As Intel’s AI Chip Reaches China Despite Prohibition

In a riveting turn of events, U.S. lawmakers recently slammed the Biden Administration as Huawei, a Chinese telecoms equipment giant, launched a new laptop containing AI Chips powered by Intel. The lawmakers’ backlash comes as the U.S. placed Huawei on a trade restriction list in 2019 for violating Iran sanctions, aiming to hinder Beijing’s tech progress.

This move by the U.S. regulators mandates suppliers to obtain a hard-to-acquire license before shipping AI chips to Chinese firms. However, the Chinese tech firm Huawei revealed laptops with Intel’s AI chip, nabbing significant attention among the U.S. regulatory authorities.

Huawei Acquires Intel’s AI Chip: A Closer Look

A license approved by the Trump administration appears to have given Intel the permit to supply central processors to Huawei for laptop use since 2020. However, China hardliners pushed for its revocation, and many reluctantly acknowledged its impending expiry without renewal later this year.

Nonetheless, the launch of Huawei’s latest AI-enabled laptop, the MateBook X Pro, promptly fueled shock and anger among critics, hinting at the U.S. Commerce Department’s contrasting approval for shipments of Intel’s new Core Ultra 9 processor to the Chinese tech giant. This sparked a sense of frenzy among U.S. lawmakers as it contrasted the nation’s tightened grip on AI chip exports.

Meanwhile, the recently launched laptop also juxtaposes the Biden Administration’s recent announcement of barring exports of laptops with AI chips to China. In addition, the Republican Congressman Michael Gallagher, chair of the House of Representatives select committee on China, told Reuters, “One of the greatest mysteries in Washington, DC is why the Department of Commerce continues to allow U.S. technology to be shipped to Huawei.”

Whereas, Intel and the Commerce Department declined to comment on the matter.

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U.S. To Tighten Grip Further?

Notably, the Biden Administration appears to be constantly evolving its regulatory efforts regarding AI chip export curbs. In March, the regulatory authorities barred exports of laptops containing AI chips to China, further underscoring the nation’s efforts to hamper Chinese tech markets.

Aligning with this, it is worth noting that the Commerce Department recently revealed that it plans to constantly update the guidelines and restrictions on AI chip exports to China. This further paves the way for further regulatory guidelines in the pipeline, coming in an effort to hinder Huawei’s rise following its placement on the trade restrictions list.

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