China puts Intel and Qualcomm on alert on Huawei

China warns Huawei

China warned US tech companies Intel (INTC), Qualcomm (QCOM) and others of the dire consequences if they reacted aggressively to the trade restrictions imposed by US authorities in Huawei, according to a government report New York Times.

Last month, the Trump administration placed Huawei on the blacklist as a risk to national security, thus banning vendors operating in America from doing business with Huawei. As a result, several US companies, including Google (GOOGL) and Microsoft (MSFT) have suspended their trading relationship with Huawei. Reuters also announced that Intel, Qualcomm, Broadcom (AVGO) and other semiconductor companies present in the United States had stopped selling their chips to Huawei. In addition, some of these chip companies have sought to limit the interaction between their employees and their counterparts in Huawei.

Low demand in China weighs on Intel data center sales

China worries that US suppliers avoiding Huawei may be hindering the progress of one of its technology champions. For Intel, for example, the trade dispute between the United States and China threatens to slow down their growth and throw their expansion ambitions into uncertainty.

China is an important market for Intel, the leading provider of processor chips for data centers. China is home to some of the world's most dynamic cloud computing companies, who buy chips for their data centers from Intel. Intel's data center operations posted a 6.0% year-over-year decline in sales, which reached $ 4.9 billion in the first quarter, due to the weakness of demand in China.