US Lawmakers Angry After Huawei Unveils Laptop With New Intel AI Chip

In this Oct. 14, 2020, file photo, a man wearing a face mask to protect against the coronavirus walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing. (AP Photo/Mark Schiefelbein, File)
In this Oct. 14, 2020, file photo, a man wearing a face mask to protect against the coronavirus walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing. (AP Photo/Mark Schiefelbein, File)
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US Lawmakers Angry After Huawei Unveils Laptop With New Intel AI Chip

In this Oct. 14, 2020, file photo, a man wearing a face mask to protect against the coronavirus walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing. (AP Photo/Mark Schiefelbein, File)
In this Oct. 14, 2020, file photo, a man wearing a face mask to protect against the coronavirus walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing. (AP Photo/Mark Schiefelbein, File)

Republican US lawmakers on Friday criticized the Biden administration after sanctioned Chinese telecoms equipment giant Huawei unveiled a laptop this week powered by an Intel AI chip.

The United States placed Huawei on a trade restriction list in 2019 for violating Iran sanctions, part of a broader effort to hobble Beijing's technological advances. Placement on the list means the company's suppliers have to seek a special, difficult-to-obtain license before shipping to it, Reuters reported.

One such license, issued by the Trump administration, has allowed Intel to ship central processors to Huawei for use in laptops since 2020. China hardliners had urged the Biden administration to revoke that license, but many grudgingly accepted that it would expire later this year and not be renewed.

Huawei's unveiling Thursday of its first AI-enabled laptop, the MateBook X Pro powered by Intel's new Core Ultra 9 processor, shocked and angered them, because it suggested to them that the Commerce Department had approved shipments of the new chip to Huawei.

“One of the greatest mysteries in Washington, DC is why the Department of Commerce continues to allow US technology to be shipped to Huawei" Republican Congressman Michael Gallagher, who chairs the House of Representatives select committee on China, said in a statement to Reuters.

A source familiar with the matter said the chips were shipped under a preexisting license. They are not covered by recent broad-cased restrictions on AI chip shipments to China, the source and another person said.

The Commerce Department and Intel declined to comment. Huawei did not immediately respond to requests for comment.

The reaction is a sign of growing pressure on the Biden administration to do more to thwart Huawei's rise, nearly five years after it was added to a trade restriction list.

In August, it shocked the world with a new phone powered by a sophisticated chip manufactured by sanctioned Chinese chipmaker SMIC, becoming a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.

At a Senate subcommittee hearing this week, Kevin Kurland, an export enforcement official, said Washington's restrictions on Huawei have had a "significant impact" on it access to US technology. He also stressed that the goal was not necessarily to stop Huawei from growing but to keep it from misusing US technology for "malign activities."

But the remarks did little to stem frustration among Republican China hawks following the news about Huawei's new laptop.

"These approvals must stop," Republican congressman Michael McCaul said in a statement to Reuters. "Two years ago, I was told licenses to Huawei would stop. Today, it doesn’t seem as though the policy has changed."



Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
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Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)

Microsoft pledged Wednesday to fight any US government order to halt data center operations in Europe as it sought to soothe concerns among European customers that trans-Atlantic tensions would lead to service disruptions.

The company's president, Brad Smith, said it's not something that officials are talking about in Washington, D.C. but it is a “real concern” for Microsoft's customers across Europe, which include governments.

President Donald Trump has stoked tensions between the US and Europe with his tariff-fueled trade war, and alarmed European leaders with policy changes, including pausing intelligence sharing with Ukraine, that throw into doubt his administration's commitment to the trans-Atlantic relationship, The AP news reported.

Smith, speaking at an event in Brussels, tried to allay concerns as he announced that the company was expanding data center operations across Europe.

“What we want Europeans to know is that they can count on us,” he said in a speech.

“In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court,” Smith wrote in a Wednesday blog post.

He noted that Microsoft has experience fighting lawsuits from the previous Trump administration as well as from former President Barack Obama’s administration.

“If we ever find ourselves losing we will put in place business continuity arrangements” that include storing computer code in Switzerland that European partners can access, he said.

Microsoft is making five digital commitments to Europe, including increasing its data center capacity by 40 in 16 countries over the next two years, Smith said. The expansion will cost tens of billions of dollars annually. Smith declined to be more specific about the cost when asked by reporters.

The expansion comes amid calls for Europe to assert tech and data sovereignty by weaning itself off reliance from big US cloud data service providers, including Microsoft, Amazon and, to a lesser extent, Google.

“Given recent geopolitical volatility, we recognize that European governments likely will consider additional options,” and Microsoft is committed to collaborating with European companies, Smith said.