REUTERS
"Exclusive: US plans to restore tariffs on dominant solar technology, sources say"
By Nichola Groom and Jarrett Renshaw
April 17, 2024
April 17 (Reuters) - The Biden administration is expected to grant a request by South Korea’s Hanwha Qcells to reverse a two-year-old trade exemption that has allowed imports of a dominant solar panel technology from China and other countries to avoid tariffs, two sources familiar with the White House plans said on Wednesday.
The news sent shares of solar manufacturers including U.S.-based First Solar higher in afternoon trade.
The Qcells request, which has not previously been reported, comes as the company is seeking to protect a pledged $2.5 billion expansion of its U.S. solar manufacturing presence against competition from cheaper Asian-made products.
The solar division of Korean conglomerate Hanwha Corp outlined the request in a formal petition to the U.S. Trade Representative on Feb. 23.
It included letters of support from seven other companies with billions of dollars combined invested in U.S. solar factories.
No decision has been made on the timeline of the expected reversal, the sources said.
Duties on imports of bifacial panels, the main technology in utility-scale solar projects, would be a boon to the more than 40 solar equipment factories planned since U.S. President Joe Biden signed his landmark climate change law, the Inflation Reduction Act, in 2022.
Those plants are critical to Biden's plan to fight climate change, revitalize American manufacturing and create millions of union jobs.
Past trade remedies have sharply divided the U.S. solar industry, which is dominated by installers and developers who rely on cheap imports to keep their project costs low.
The top U.S. solar trade group, the Solar Energy Industries Association (SEIA), lobbied for the bifacial exemption.
In a statement, SEIA did not address the exemption directly but advocated for an increase in the amount of solar cells that can be imported tariff-free to help companies assembling American-made panels.
"We hope the Administration is prepared to directly support increased domestic manufacturing of solar modules by raising the tariff rate quota on cells," said Stacy Ettinger, SEIA's senior vice president of supply chain and trade.
Biden administration officials, including Treasury Secretary Janet Yellen and U.S. Trade Representative Katherine Tai, in recent weeks have said the U.S. is evaluating trade remedies to deal with threats posed by China's massive investment in factory capacity for clean energy goods.
The solar panel issue goes to the core of one of Biden’s arguments for re-election: that his economic policies have begun transforming the U.S. energy economy while combating climate change.
However, the pace of growth in the domestic solar panel manufacturing market has been cast into doubt by surging imports of cheap, Chinese panels.
A bipartisan group of U.S. senators, led by the two Democrats from the critical election battleground state of Georgia, asked Biden earlier this year to toughen up tariffs on Chinese solar panels or face a glutted market just as clean-energy tax credits hit the market.
Qcells, which has two factories in Georgia, is the largest U.S. producer of silicon-based solar products.
In its petition, a copy of which was seen by Reuters, the company asked Biden to revoke an exemption of so-called bifacial panels from duties first imposed by Republican former President Donald Trump in 2018 and extended by Biden, a Democrat, in 2022.
The tariffs on imported modules started at 30% and currently stand at 14.25%.
They are due to expire in 2026.
'A LEVEL PLAYING FIELD'
Most panel imports come from Southeast Asia but are made by Chinese companies there.
The U.S. imposed duties on some panel makers for finishing their products in Cambodia, Malaysia, Thailand and Vietnam to avoid tariffs on Chinese-made goods.
Biden waived those tariffs nearly two years ago, a policy that the White House said it will allow to expire in June.
"We're continuing to look at all of our options to ensure that the historic investments spurred by the Inflation Reduction Act are successful," a White House official said.
"Our companies and workers can compete with anyone, but they need a level playing field."
Bifacial panels can generate electricity on both sides.
The technology was nascent when the tariffs were first imposed but now accounts for 98% of imported modules, according to the petition.
The action is needed, Qcells said in the petition, to preserve the many plans for new U.S. solar manufacturing capacity that have been unleashed by incentives contained in the IRA.
"Despite these positive trends, there is growing evidence that negative market conditions caused by surging imports of bifacial modules are causing several companies to rethink their plans to invest in the U.S.," the petition said.
Qcells' request is supported by seven other solar manufacturers with U.S. factories - First Solar, Heliene, Suniva, Silfab, Crossroads Solar, Mission Solar and Auxin Solar - according to the petition documents.
First Solar shares closed nearly 3% higher at $178.01 on the Nasdaq.
Reporting by Nichola Groom and Jarrett Renshaw; editing by Timothy Gardner and Bill Berkrot
https://www.reuters.com/world/us/us-pla ... 024-04-17/
CHINA
Re: CHINA
REUTERS
"New tariffs on Chinese metals won't impact inflation, White House says"
By Reuters
April 17, 2024
WASHINGTON, April 17 (Reuters) - Sharply higher tariffs on Chinese metal products being considered by the Biden administration would not affect U.S. inflation and are necessary for national security, White House economic adviser Jared Bernstein said on Wednesday.
"If we don't take action, we're putting at risk about one of our most critical sectors -- what the president calls the backbone of the American economy, the bedrock of our national security -- and that's domestic steel production," the chairman of the White House Council of Economic Advisers told CNBC.
U.S. President Joe Biden on Wednesday will call for sharply higher tariffs on Chinese steel and aluminum as part of a package of policies aimed at pleasing steelworkers in the swing state of Pennsylvania, at the risk of angering Beijing.
Bernstein said such tariffs would not have a negative effect on the U.S. economy.
"This is a targeted intervention that shouldn't have much impact at all on inflation," he said in an interview with CNBC.
Reporting by Doina Chiacu; editing by Susan Heavey
https://www.reuters.com/markets/commodi ... 024-04-17/
"New tariffs on Chinese metals won't impact inflation, White House says"
By Reuters
April 17, 2024
WASHINGTON, April 17 (Reuters) - Sharply higher tariffs on Chinese metal products being considered by the Biden administration would not affect U.S. inflation and are necessary for national security, White House economic adviser Jared Bernstein said on Wednesday.
"If we don't take action, we're putting at risk about one of our most critical sectors -- what the president calls the backbone of the American economy, the bedrock of our national security -- and that's domestic steel production," the chairman of the White House Council of Economic Advisers told CNBC.
U.S. President Joe Biden on Wednesday will call for sharply higher tariffs on Chinese steel and aluminum as part of a package of policies aimed at pleasing steelworkers in the swing state of Pennsylvania, at the risk of angering Beijing.
Bernstein said such tariffs would not have a negative effect on the U.S. economy.
"This is a targeted intervention that shouldn't have much impact at all on inflation," he said in an interview with CNBC.
Reporting by Doina Chiacu; editing by Susan Heavey
https://www.reuters.com/markets/commodi ... 024-04-17/
Re: CHINA
REUTERS
"US commerce secretary downplays chip in advanced Huawei phone"
By Reuters
April 22, 2024
WASHINGTON, April 21 (Reuters) - The chip powering the Mate 60 Pro phone of sanctioned Chinese company Huawei is not as advanced as American chips, U.S. Commerce Secretary Gina Raimondo said on Sunday, arguing that it shows U.S. curbs on shipments to the telecoms equipment giant are working.
Huawei, which has been on a trade restriction list since 2019, surprised the industry and the U.S. government when it released a new phone powered by a sophisticated chip last August.
The Huawei Mate 60 Pro was seen as a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.
It was also seen by many as a slight for Raimondo, who was visiting China when it was released.
But in an interview with CBS News' "60 Minutes," Raimondo pushed back against that view.
"What it tells me is the export controls are working because that chip is not nearly as good, ... it's years behind what we have in the United States," she said.
"We have the most sophisticated semiconductors in the world."
"China doesn't."
Washington has been locked in a years-long effort to deprive Beijing of advanced semiconductor chips and the tools needed to make them over concerns they would be used to strengthen China's military capabilities.
Huawei, a symbol of that tech war, was added to the so-called entity-list in 2019 amid fears it could spy on Americans, forcing its U.S. suppliers to seek a difficult-to-obtain license to ship to it.
But its suppliers, including Intel, have received licenses worth billions of dollars to keep selling to the company.
Huawei's revelation of its first AI-enabled laptop powered by an Intel chip this month has fueled anger among Republican China hardliners.
When asked if she was tough enough on big business, Raimondo was emphatic.
"I hold businesses accountable as much as anyone," she told Lesley Stahl on "60 Minutes."
"When I tell them they can’t sell their semiconductors to China, they don’t love that, but I do that," she added.
The Huawei phone also prompted a review by the Biden administration to learn the details behind the chip that powers it, the most advanced semiconductor China has so far produced.
But details of the review have been scant.
Reporting by Alexandra Alper; Editing by Leslie Adler
https://www.reuters.com/technology/us-c ... 024-04-21/
"US commerce secretary downplays chip in advanced Huawei phone"
By Reuters
April 22, 2024
WASHINGTON, April 21 (Reuters) - The chip powering the Mate 60 Pro phone of sanctioned Chinese company Huawei is not as advanced as American chips, U.S. Commerce Secretary Gina Raimondo said on Sunday, arguing that it shows U.S. curbs on shipments to the telecoms equipment giant are working.
Huawei, which has been on a trade restriction list since 2019, surprised the industry and the U.S. government when it released a new phone powered by a sophisticated chip last August.
The Huawei Mate 60 Pro was seen as a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.
It was also seen by many as a slight for Raimondo, who was visiting China when it was released.
But in an interview with CBS News' "60 Minutes," Raimondo pushed back against that view.
"What it tells me is the export controls are working because that chip is not nearly as good, ... it's years behind what we have in the United States," she said.
"We have the most sophisticated semiconductors in the world."
"China doesn't."
Washington has been locked in a years-long effort to deprive Beijing of advanced semiconductor chips and the tools needed to make them over concerns they would be used to strengthen China's military capabilities.
Huawei, a symbol of that tech war, was added to the so-called entity-list in 2019 amid fears it could spy on Americans, forcing its U.S. suppliers to seek a difficult-to-obtain license to ship to it.
But its suppliers, including Intel, have received licenses worth billions of dollars to keep selling to the company.
Huawei's revelation of its first AI-enabled laptop powered by an Intel chip this month has fueled anger among Republican China hardliners.
When asked if she was tough enough on big business, Raimondo was emphatic.
"I hold businesses accountable as much as anyone," she told Lesley Stahl on "60 Minutes."
"When I tell them they can’t sell their semiconductors to China, they don’t love that, but I do that," she added.
The Huawei phone also prompted a review by the Biden administration to learn the details behind the chip that powers it, the most advanced semiconductor China has so far produced.
But details of the review have been scant.
Reporting by Alexandra Alper; Editing by Leslie Adler
https://www.reuters.com/technology/us-c ... 024-04-21/
Re: CHINA
REUTERS
"Yellen says US economy strong, all options open on China's overcapacity"
By Alessandra Galloni, David Lawder and Andrea Shalal
April 25, 2024
Summary
* Yellen: Q1 GDP data may be revised up; spending, investment strong
* Inflation to continue to ebb despite Q1 flare-up, Yellen says
* Yellen: tapping interest on Russian assets can win G7 support
WASHINGTON, April 25 (Reuters) - U.S. Treasury Secretary Janet Yellen told Reuters on Thursday that U.S. economic growth was likely stronger than suggested by weaker-than-expected data on first-quarter output and said the Biden administration was keeping all options open to respond to threats from China's excess industrial capacity.
In a wide-ranging Reuters Next interview, Yellen also said that a U.S. proposal for using the interest earnings from $300 billion in frozen Russian assets to aid Ukraine could win broad support from G7 allies.
Yellen said U.S. GDP growth for the first quarter could be revised higher after more data is in hand and inflation will ease to more normal levels after a clutch of "peculiar" factors held the economy to its weakest showing in nearly two years.
"The U.S. economy continues to perform very, very well," Yellen said in an interview with Reuters, responding to the Commerce Department's report showing that U.S. gross domestic product grew at a 1.6% annualized rate last quarter.
That was below the 2.4% estimated by economists and less than half the pace in the fourth quarter of 2023 - thanks to substantial drags from trade and private inventories.
The report also showed a worrisome surge in inflation, with the personal consumption expenditures (PCE) price index excluding food and energy rising at a 3.7% annual rate after a 2.0% pace in the fourth quarter of 2023.
Yellen downplayed the inflation jump and said she did not see that as indicating that unemployment needed to increase or other areas of the economy needed to cool to return inflation to the Fed's 2% target.
"The fundamentals here are in line with inflation continuing back down to normal levels," Yellen said.
Fighting inflation remained President Joe Biden's top priority, Yellen said, highlighting his administration's efforts to reduce healthcare, energy and housing costs.
But Biden, a Democrat, has struggled to translate U.S. economic strength into voter support ahead of the November presidential election.
Republican challenger Donald Trump led Biden by seven percentage points in a recent Reuters/Ipsos poll when voters were asked which candidate would be better for the economy.
"What I focus on most is the strength of consumer spending and investment spending," Yellen said.
"Those two elements of final demand came in in line with last year's growth rate ... so this is the underlying strength of the U.S. economy that showed continuing robust strength."
"The headline figure was off a little bit but for reasons that are peculiar and not really indicative of underlying strength," she added.
Indeed, a number of private economists said the GDP data likely overstated any weakness in an economy that had grown at above the rate most see as its potential for nearly two years, despite aggressive interest rate hikes over that span by the U.S. Federal Reserve aimed at quashing inflation.
Yellen said dollar strength has been another byproduct of U.S. growth and tight monetary policy.
She acknowledged that this has put some pressure on other countries, but said currency interventions should occur only in "very rare and exceptional circumstances," when markets are disorderly with excessive volatility.
She declined to comment on the Japanese yen's value when asked whether it was out of line with fundamentals.
Last week, the U.S., Japan and South Korea agreed to consult closely on currencies, acknowledging concerns from Tokyo and Seoul over their currencies recent sharp declines against the dollar.
CHINA OVERCAPACITY
Yellen told Reuters no option was "off the table" for dealing with one threat to the U.S. economy - overproduction in China, which was hurting manufacturers in numerous countries.
She said that while Chinese policymakers have acknowledged they have a problem with excess industrial capacity for electric vehicles, solar panels and other clean energy goods, they need to address it.
The issue was "discussed intensively" last week at a U.S.-China meeting on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington, she said.
Asked about potential for new tariffs or other actions to protect U.S. producers from an expected flood of Chinese exports, Yellen said she would not eliminate any options as a possible response.
She said Chinese overproduction threatens the viability of manufacturers in the U.S., Europe, Japan, Mexico and India but the problem won't be resolved "in a day or a week."
"So it's important that China recognize the concern and begin to act to address it," Yellen said.
"But we don't want our industry wiped out in the meantime, so I wouldn't want to take anything off the table."
The Biden administration is completing a review of the "Section 301" unfair trade tariffs on Chinese imports imposed by former President Donald Trump in 2018, which U.S. officials have said could lead to higher tariffs on some products.
Biden last week called for the review to triple the Section 301 duties on Chinese steel to 25%.
U.S. Trade Representative Katherine Tai also told senators that the U.S. needed to take "early action, decisive action" to protect the fledgling American EV sector from Chinese imports.
U.S. tariffs on Chinese vehicle imports are now about 27.5%, and few Chinese EVs are sold in the U.S. at the moment.
RUSSIAN ASSET PLANS
Yellen said that a proposal under discussion by finance ministers from the Group of Seven (G7) industrial democracies to harness earnings from frozen Russian central bank assets to aid Ukraine can be achieved without an outright confiscation of those assets, allaying the concerns of some countries.
Yellen welcomed what she called a "very constructive step" taken by the European Union to segregate the proceeds from assets held by Brussels-based Euroclear and transfer them to Ukraine, noting future interest could also be pulled forward to back loans to Ukraine.
"This is an approach that could be broadly supported by countries that are concerned about the seizure of assets, and some of the interest could be brought forward through, for example, a loan," Yellen said.
Yellen said the approach was among several options being discussed by G7 countries ahead of a leaders summit in June, adding, "it certainly belongs on the list."
The U.S. approach, led by deputy national security adviser Daleep Singh, is gaining momentum among the G7 nations, two officials from the group told Reuters earlier on Thursday.
Most of the Russian assets held by Euroclear have now been converted to cash, Yellen told Reuters. G7 officials say the assets could generate around $5 billion a year in interest.
Reporting by Alessandra Galloni, David Lawder and Andrea Shalal; Additional reporting by Dan Burns and Lindsay Dunsmuir; Writing by David Lawder, Andrea Shalal and Dan Burns; Editing by Andrea Ricci
https://www.reuters.com/markets/us/yell ... 024-04-25/
"Yellen says US economy strong, all options open on China's overcapacity"
By Alessandra Galloni, David Lawder and Andrea Shalal
April 25, 2024
Summary
* Yellen: Q1 GDP data may be revised up; spending, investment strong
* Inflation to continue to ebb despite Q1 flare-up, Yellen says
* Yellen: tapping interest on Russian assets can win G7 support
WASHINGTON, April 25 (Reuters) - U.S. Treasury Secretary Janet Yellen told Reuters on Thursday that U.S. economic growth was likely stronger than suggested by weaker-than-expected data on first-quarter output and said the Biden administration was keeping all options open to respond to threats from China's excess industrial capacity.
In a wide-ranging Reuters Next interview, Yellen also said that a U.S. proposal for using the interest earnings from $300 billion in frozen Russian assets to aid Ukraine could win broad support from G7 allies.
Yellen said U.S. GDP growth for the first quarter could be revised higher after more data is in hand and inflation will ease to more normal levels after a clutch of "peculiar" factors held the economy to its weakest showing in nearly two years.
"The U.S. economy continues to perform very, very well," Yellen said in an interview with Reuters, responding to the Commerce Department's report showing that U.S. gross domestic product grew at a 1.6% annualized rate last quarter.
That was below the 2.4% estimated by economists and less than half the pace in the fourth quarter of 2023 - thanks to substantial drags from trade and private inventories.
The report also showed a worrisome surge in inflation, with the personal consumption expenditures (PCE) price index excluding food and energy rising at a 3.7% annual rate after a 2.0% pace in the fourth quarter of 2023.
Yellen downplayed the inflation jump and said she did not see that as indicating that unemployment needed to increase or other areas of the economy needed to cool to return inflation to the Fed's 2% target.
"The fundamentals here are in line with inflation continuing back down to normal levels," Yellen said.
Fighting inflation remained President Joe Biden's top priority, Yellen said, highlighting his administration's efforts to reduce healthcare, energy and housing costs.
But Biden, a Democrat, has struggled to translate U.S. economic strength into voter support ahead of the November presidential election.
Republican challenger Donald Trump led Biden by seven percentage points in a recent Reuters/Ipsos poll when voters were asked which candidate would be better for the economy.
"What I focus on most is the strength of consumer spending and investment spending," Yellen said.
"Those two elements of final demand came in in line with last year's growth rate ... so this is the underlying strength of the U.S. economy that showed continuing robust strength."
"The headline figure was off a little bit but for reasons that are peculiar and not really indicative of underlying strength," she added.
Indeed, a number of private economists said the GDP data likely overstated any weakness in an economy that had grown at above the rate most see as its potential for nearly two years, despite aggressive interest rate hikes over that span by the U.S. Federal Reserve aimed at quashing inflation.
Yellen said dollar strength has been another byproduct of U.S. growth and tight monetary policy.
She acknowledged that this has put some pressure on other countries, but said currency interventions should occur only in "very rare and exceptional circumstances," when markets are disorderly with excessive volatility.
She declined to comment on the Japanese yen's value when asked whether it was out of line with fundamentals.
Last week, the U.S., Japan and South Korea agreed to consult closely on currencies, acknowledging concerns from Tokyo and Seoul over their currencies recent sharp declines against the dollar.
CHINA OVERCAPACITY
Yellen told Reuters no option was "off the table" for dealing with one threat to the U.S. economy - overproduction in China, which was hurting manufacturers in numerous countries.
She said that while Chinese policymakers have acknowledged they have a problem with excess industrial capacity for electric vehicles, solar panels and other clean energy goods, they need to address it.
The issue was "discussed intensively" last week at a U.S.-China meeting on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington, she said.
Asked about potential for new tariffs or other actions to protect U.S. producers from an expected flood of Chinese exports, Yellen said she would not eliminate any options as a possible response.
She said Chinese overproduction threatens the viability of manufacturers in the U.S., Europe, Japan, Mexico and India but the problem won't be resolved "in a day or a week."
"So it's important that China recognize the concern and begin to act to address it," Yellen said.
"But we don't want our industry wiped out in the meantime, so I wouldn't want to take anything off the table."
The Biden administration is completing a review of the "Section 301" unfair trade tariffs on Chinese imports imposed by former President Donald Trump in 2018, which U.S. officials have said could lead to higher tariffs on some products.
Biden last week called for the review to triple the Section 301 duties on Chinese steel to 25%.
U.S. Trade Representative Katherine Tai also told senators that the U.S. needed to take "early action, decisive action" to protect the fledgling American EV sector from Chinese imports.
U.S. tariffs on Chinese vehicle imports are now about 27.5%, and few Chinese EVs are sold in the U.S. at the moment.
RUSSIAN ASSET PLANS
Yellen said that a proposal under discussion by finance ministers from the Group of Seven (G7) industrial democracies to harness earnings from frozen Russian central bank assets to aid Ukraine can be achieved without an outright confiscation of those assets, allaying the concerns of some countries.
Yellen welcomed what she called a "very constructive step" taken by the European Union to segregate the proceeds from assets held by Brussels-based Euroclear and transfer them to Ukraine, noting future interest could also be pulled forward to back loans to Ukraine.
"This is an approach that could be broadly supported by countries that are concerned about the seizure of assets, and some of the interest could be brought forward through, for example, a loan," Yellen said.
Yellen said the approach was among several options being discussed by G7 countries ahead of a leaders summit in June, adding, "it certainly belongs on the list."
The U.S. approach, led by deputy national security adviser Daleep Singh, is gaining momentum among the G7 nations, two officials from the group told Reuters earlier on Thursday.
Most of the Russian assets held by Euroclear have now been converted to cash, Yellen told Reuters. G7 officials say the assets could generate around $5 billion a year in interest.
Reporting by Alessandra Galloni, David Lawder and Andrea Shalal; Additional reporting by Dan Burns and Lindsay Dunsmuir; Writing by David Lawder, Andrea Shalal and Dan Burns; Editing by Andrea Ricci
https://www.reuters.com/markets/us/yell ... 024-04-25/
Re: CHINA
REUTERS
"U.S. chip bans not meant to hobble China's growth, Blinken says"
By Stephen Nellis
April 26, 2024
April 26 (Reuters) - U.S. export controls on sending advanced computing chips to China are not meant to hold back China's economy or technological development, Secretary of State Antony Blinken said during an interview with National Public Radio on Friday.
Since 2022, U.S. officials have imposed sweeping controls on which computing chips can be exported to China, cutting off some sales from Nvidia, Advanced Micro Devices and Intel, among others.
Those controls followed earlier bans on shipping chips to Huawei Technologies.
But U.S. officials have granted at least two U.S. companies - Intel and Qualcomm - licenses to keep shipping chips to Huawei, which is using an Intel chip to power a new laptop model.
Two Republican lawmakers earlier this week criticized the exemption for Intel, but in the interview with NPR, Blinken highlighted the device as a sign the U.S. was not trying to hobble China.
"I saw that Huawei just put out a new laptop that it boasted was AI capable, that uses an Intel chip," Blinken told NPR host Steve Inskeep while visiting Beijing.
"I think it demonstrates that what we're focused on is only the most sensitive technology that could pose a threat to our security."
"We're not focused on cutting off trade, or for that matter containing or holding back China."
Intel and Qualcomm's licenses to sell to Huawei were granted during President Donald Trump's administration and have remained in place under President Joe Biden.
Those companies' direct competitors, AMD and MediaTek, have not received similar exemptions, and neither the Trump nor Biden administrations have explained why.
Reporting by Stephen Nellis in San Francisco; Editing by Sandra Maler
https://www.reuters.com/technology/us-c ... 024-04-26/
"U.S. chip bans not meant to hobble China's growth, Blinken says"
By Stephen Nellis
April 26, 2024
April 26 (Reuters) - U.S. export controls on sending advanced computing chips to China are not meant to hold back China's economy or technological development, Secretary of State Antony Blinken said during an interview with National Public Radio on Friday.
Since 2022, U.S. officials have imposed sweeping controls on which computing chips can be exported to China, cutting off some sales from Nvidia, Advanced Micro Devices and Intel, among others.
Those controls followed earlier bans on shipping chips to Huawei Technologies.
But U.S. officials have granted at least two U.S. companies - Intel and Qualcomm - licenses to keep shipping chips to Huawei, which is using an Intel chip to power a new laptop model.
Two Republican lawmakers earlier this week criticized the exemption for Intel, but in the interview with NPR, Blinken highlighted the device as a sign the U.S. was not trying to hobble China.
"I saw that Huawei just put out a new laptop that it boasted was AI capable, that uses an Intel chip," Blinken told NPR host Steve Inskeep while visiting Beijing.
"I think it demonstrates that what we're focused on is only the most sensitive technology that could pose a threat to our security."
"We're not focused on cutting off trade, or for that matter containing or holding back China."
Intel and Qualcomm's licenses to sell to Huawei were granted during President Donald Trump's administration and have remained in place under President Joe Biden.
Those companies' direct competitors, AMD and MediaTek, have not received similar exemptions, and neither the Trump nor Biden administrations have explained why.
Reporting by Stephen Nellis in San Francisco; Editing by Sandra Maler
https://www.reuters.com/technology/us-c ... 024-04-26/