American intelligence agencies concluded in 2022 that the United Arab Emirates had provided Huawei with technology later used by China to upgrade its long-range air-to-air missiles. According to six people familiar with the findings, US officials believed that G42 — Abu Dhabi’s flagship artificial-intelligence company — transferred software that optimized missile flight paths. The data suggested that the technology improved China’s PL-15 and PL-17 missiles, giving the People’s Liberation Army a range advantage over American aircraft, the Financial Times reported.
G42 and Huawei deny US claims
G42, whose investors include Microsoft, Silver Lake, and the UAE’s sovereign fund Mubadala, called the allegations “false and defamatory,” insisting that it had never provided proprietary or military-related software to Huawei or China’s military. The company said Huawei had acted only as a commercial cloud-infrastructure vendor, and that all business ties ended in October 2023. Huawei also denied any transfer of technology from G42, calling the US claims “entirely untrue.”
A wider concern about UAE–China ties
The intelligence sparked debate in Washington about whether the UAE — long a critical US ally hosting American bases — was edging closer to Beijing. “Intel was flashing red,” said one former US official, describing concerns that G42 and the Emirati tech sector were “drifting into China’s orbit.” The issue became so sensitive that the White House considered adding G42 to the Commerce Department’s entity list, which would have effectively cut it off from US technology.
Diplomatic pressure and assurances
The Biden administration dispatched senior officials to Abu Dhabi in early 2023, warning National Security Adviser Sheikh Tahnoon bin Zayed that the UAE had to choose between US and Chinese partnerships in artificial intelligence. Then–commerce secretary Gina Raimondo reportedly told Emirati officials it was “one strike and you’re out.” Following months of negotiations, G42 agreed to remove Huawei equipment from its data centres and pivot its AI cooperation toward American companies.
Amos Hochstein, Biden’s global energy adviser at the time, said the UAE “acted immediately” whenever concerns were raised, though some US security officials remained sceptical about its transparency.
China’s military advantage and US caution
Analysts said the suspected technology transfer underscored how China’s defence industry had overtaken the US in certain missile systems. “The PL-15 and PL-17 leapfrogged their US equivalents in range and seeker technology,” said a former CIA expert on China. While no laws appear to have been violated, US officials warned that the incident highlighted the risks of dual-use technology flowing through global AI partnerships.
Under Trump, cooperation resumes — cautiously
Relations improved under the Trump administration, which has embraced Abu Dhabi as a partner in “Stargate,” a $500 billion AI project led by OpenAI to build massive US–UAE data centres. But export-control hurdles remain, with Washington slow to issue the licences needed for advanced chip transfers.
Some lawmakers continue to warn that deeper AI collaboration with the UAE must be contingent on clear distancing from China. “I welcome closer cooperation,” said Representative John Moolenaar, chair of the House China committee, “but it needs to come with the Emiratis verifiably and irreversibly choosing America.”
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