U.S. chipmaking giant Intel (INTC) – Get Report has been granted a new set of licenses from the U.S. government to continue supplying some of its chips and other manufactured components to China’s Huawei Technologies.
An Intel spokesperson told Reuters that the Santa Clara, Calif.-based company has been given the nod to continue selling products to Huawei, which has been blacklisted from doing business with American companies amid ongoing tensions between the U.S. and Chinese governments.
U.S. officials have for more than a year argued it was necessary to place restrictions on Huawei because they see the company’s equipment embedded in U.S. telecom networks as posing significant national-security risks. Huawei has insisted from the get-go that it is not a threat.
However, amid heightened political tensions, the Commerce Department in mid-August imposed new, more stringent curbs, including requiring U.S. chipmakers like Intel and rival Qualcomm (QCOM)