Huawei’s Android alternative to make first debut … but not on a phone.

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I have previously mentioned Huawei’s Hongmeng OS, their in-house Android alternative that was slated to have an earlier release date after the US placed Huawei on the “entity list”. However, Huawei’s Hongmeng OS’ first device won’t be on a smart phone – but rather on Huawei’s TV with a smart screen. The smart screens on TV’s will be the communication hub for the tv and the living room and is expected to launch next month.

The Hongmeng is also trademarked as “Ark” and has been reported to be in development for a long time. I thought the Hongmeng OS would be shelved for awhile after the reprieve by President Trump, however, it seems Huawei has the new OS ready to go. Will be interested to see how the OS operates and what kind of native application support it will have.

GitHub blocks developers in countries facing US trade sanctions.

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GitHub (owned by Microsoft) is the world’s largest software development platform that provides hosting for software development version control using Git. It was acquired by Microsoft in 2018 for $7.5 billion and has recently started blocking developers in countries facing US trade sanctions.

For example, last week Github restricted the account of Anatoliy Kashkin, a 21-year-old Russian citizen who lives in Crimea. He was told his GitHub account had been restricted “due to US trade controls”.

The correspondence from GitHub advised Kashkin of GitHub’s US trade control policy – listing Crimea, Cuba, Iran, North Korea, and Syria as countries facing US sanctions. In addition to his website now showing a 404 error, Kashkin also can’t access his previous work.

GitHub’s website does advise that “Users are responsible for ensuring that the content they develop and share on GitHub.com complies with the U.S. export control laws, including the EAR (Export Administration Regulations) and the US International Traffic in Arms Regulations (ITAR)” and that “The cloud-hosted service offering available at Github.com has not been designed to host data subject to the ITAR and does not currently offer the ability to restrict repository access by country. If you are looking to collaborate on ITAR- or other export-controlled data, we recommend you consider GitHub Enterprise Server, GitHub’s on-premises offering.”

Besides banning accounts for individuals in Crimea, GitHub has also restricted developers in Iran.

If you want to ensure your company is in compliance with the Export Administration Regulations and the US International Traffic in Arms Regulations (ITAR), contact experienced compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Intel CEO talks about Huawei ban.

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In an interview with Yahoo Finance, Intel CEO Bob Swan said Huawei was an “important customer” while stressing Intel must abide by the “rules of the road” – the export restrictions in place after Huawei’s inclusion on the BIS entity list.

Intel’s CEO was one of six other tech CEO’s who met with President Trump this past Monday to discuss security issues around the use of Huawei equipment. While most people relate Huawei to their smartphones, Huawei also makes the infrastructure for the internet. Huawei is currently working on 5G equipment which US officials suspect will contain back doors or other  means for Chinese espionage.

In related news – Intel reported second-quarter earnings and beating expectations and Intel will sell most of its smartphone modem business to Apple for $1 billion.

China’s industrial profits fall in June, sparking fears of slowdown.

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According to CNBC, profits earned by China’s industrial firms fell 3.1% in June from a year earlier, according to the China’s National Bureau of Statistics.

The decrease in industrial profits is likely due to the US/China trade war and the increase in tariffs on Chinese imports. CNBC also states that economic growth in the second quarter slowed to a near 30-year low.

With the US and China set to meet on July 30th for the first time since May, both sides may be looking for an agreement to end the almost year-long trade war.

US exports of cherries to China collapses due to trade war.

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US imports of cherries to China was zero in the year 2000, growing to over $200 million in 2017. However, the current US China trade war and the retaliatory tariffs implemented by China have caused the US exports of Cherries to China to fall to about $200,000 for the year.

In retaliation for the Section 301 duties placed on Chinese imports, China in turn levied tariffs on US goods – for example, a 50% duty on US cherries. As a result, the US only shipped 187 tonnes in May 2019, versus 337 tonnes in May 2018 and 1,505 tonnes in May 2017. In fact, US cherry growers sometimes exported more cherries to China than to Canada.

Trump: Apple goods from China will be subject to duties.

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According to the AFP, earlier today, President Donald Trump warned he would deny Apple’s “exclusion request” for tariff exemptions on device components imported from China.

Specifically, President Donald Trump wrote on Twitter:

“Apple will not be given Tariff wavers, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!”

Trump’s message on Twitter is in response to Apple’s filing of an “exclusion request” with the U.S. trade representative. Apple claims that some parts of the Mac Pro desktop being sold at $6,000 can only be sourced in China and therefore not be subject to 301 duties.

If your imported goods from China are subject to the current “List 3” duties and you would like to file an exemption, contact experienced trade attorney David Hsu at dh@gjatradelaw.com, attorney.dave@yahoo.com or by phone/text at: 832-896-6288.

Columbia Grain Trading stops some new soybean sales to China.

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Columbia Grain Trading Inc. (owned by Japan-based Maurbeni Corp.) says they will stop all new soybean sales to China due to falling sales as of July 24th. The reasons cited include falling sales volume to China due to the trade war with the US.

China was the top buyer of U.S. soybeans until Beijing levied a 25% tariff on shipments of soybeans from the US in response to US tariffs on Chinese goods.

China imported 16.6 million tonnes of soybeans from the United States in 2018, about half of the 32.9 million tonnes purchased the in 2017 before the trade war.

14 House Democrats ask Nancy Pelosi to bring vote on USMCA.

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A group of 14 House Democrats sent a letter to House Speaker Nancy Pelosi asking her to to bring a vote by the end of the year on USMCA, the renegotiated trade with Canada and Mexico to replace NAFTA.

The letter to Speaker Pelosi reads:

“It is imperative that we reach a negotiated agreement early in the fall. Canada and Mexico are by far our most important trading partners, and we need to restore certainty in these critical relationships that support millions of American jobs.”

The 14 House Democrats:

Colin Allred (D-Texas)
Scott Peters (D-Calif.)
Kendra Horn (D-Okla.)
Haley Stevens (D-Mich.)
Anthony Brindisi (D-NY)
Joe Cunningham (D-SC)
Lizzie Fletcher (D-Texas)
Ben McAdams (D-UT)
Josh Harder (D-Calif.)
J. Luis Correa (D-Calif.)
Sharice L. Davids (D-Kansas)
TJ Cox (D-Calif.)
Susie Lee (D-Nevada)
Greg Stanton (D-Arizona)

If you have questions how the new USMCA will impact your business, contact experienced trade attorney David Hsu at dh@gjatradelaw.com, attorney.dave@yahoo.com.

France to begin digital tax against Google, Amazon, Facebook, and Apple.

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While the Trump administration investigates Google and other tech companies for potential anti-trust violations here in the US, the Trump administration has threatened retaliatory tariffs against French imports if France implements a tax on digital activities.

The digital tax law was passed by the French Parliament on July 11th and to tax Google, Amazon, Facebook and Apple (known as the “GAFA” companies). The 3% tax on digital services would generate 400 million euros in 2019 and expected to generate 650 million by 2022.

In response, the US Trade Representative has begun an investigation against France for unfairly targeting US-based companies and is now open for public comment before a public hearing on August 19th.

We may see new tariffs on the over 36 billion in French imports into the US starting in August. If you import any items from France and want to know how you may be impacted, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Apple shifts Mac Pro production to China, then asks to not pay tariffs on imported Mac Pros.

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The Mac Pro was the last Apple product manufactured in the US, and last June, Apple announced they would shift Mac Pro production to China.

On July 18th, Apple filed “exclusion requests” with the US Trade Representative to exclude certain items from the 25% 301 duties on goods imported from China.

The parts include a CPU, heat sink, power supplies, USB charging cables, circuit boards, graphics processing modules, computer enclosure, the Magic Mouse and Magic Trackpad.

To view Apple’s exclusion requests, go here: https://exclusions.ustr.gov/s/PublicDocket and search by “Organization Name” for “Apple”.

If you want to file an exclusion request, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.