House Foreign Affairs Committee Chairman Michael McCaul said the move is key to preventing China from developing advanced artificial intelligence.

The purported commerce department order intends to prevent Intel and Qualcomm’s chips from being used on Huawei’s latest smartphones and laptops.

The US government says it has revoked licences that had allowed US chip makers Intel and Qualcomm to export certain goods to Chinese technology giant Huawei.The Department of Commerce did not specify which permits were cancelled but the move follows Huawei's release of an AI-enabled computer powered by a chip created by Intel.

The Biden administration has revoked export licenses that allow Intel and Qualcomm to supply Huawei with semiconductors as Washington increases the

The Commerce Department's decision comes after some Republican lawmakers expressed outrage that Huawei had developed a laptop featuring Intel chips.

The move is expected to impact chip sales by Intel and Qualcomm to Huawei’s smartphone and laptop business lines.

The U.S. has revoked licenses that allowed companies including Intel and Qualcomm to ship chips used for laptops and handsets to sanctioned Chinese telecoms equipment maker Huawei Technologies, three people familiar with the matter said.

Intel’s stock took a hit Wednesday after the semiconductor giant disclosed that a U.S. government ruling will stop the export of some of the company’s products to a customer in China.