Britain confirmed to quit Huawei in its 5G network.

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According to the Voice of America quoting a British political insider – the British government will quit plans to use Huawei technology in its 5G network, with an announcement coming soon. The announcement will also discuss the gradual removal of the current Huawei technology in place. Part of the decision is due to the COVID-19 crisis and public disillusionment with Beijing along with strong opposition to Huawei from senior members.

The VOA article stated initial public support for Huawei changed due to China’s handling of the coronavirus and the situation over Hong Kong. Lastly, the article mentions Britain’s Prime Minister Johnson’s fight against COVID-19 also likely resulted in a tougher view towards China.

In response, Huawei launched an advertising campaign reminding the British public of their 20 year involvement in the UK and their “commitment to helping bring fast reliable mobile and full fiber broadband networks to every part [of] the country.”

The United States will likely welcome the news as they have been lobbying the UK government and according to a statement from Secretary of State Mike Pompeo: “The United States stands with our allies and partners” and “stands ready to assist our friends in the U.K. with any needs they have, from building secure and reliable nuclear power plants to developing trusted 5G solutions that protect their citizens’ privacy,” Pompeo said.

It will be interesting to see whether Nokia or Ericcson are picked to replace Huawei in England. Will post more as news becomes available.

Canadian government silent on Huawei 5G.

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Canada’s three major telecommunications companies have previously rejected use of Huawei Technologies equipment for Canada’s 5G-network. However, after two years, Canada’s government is still reviewing the potential for Huawei involvement in Canadian 5G.

Currently, Telus Corp, Bell Canada and Rogers Communications have all agreed to not choose Huawei and instead look at Ericcson and Nokia for 5G equipment. It is unknown why the shift away from Huawei, as Telus Corp and Bell Canada previously chose Huawei as the more affordable option.

As you are aware, Canada is facing pressure from the US and the UK to seek alternatives to Huawei. If you or your company does any export business with Huawei, contact our office for a no cost obligation. Contact David Hsu by phone/tezt at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

HSBC may face retaliation if UK bans Huawei equipment.

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According to the Telegraph, HSBC Holdings PLC (HSBC) Chairman Mark Tucker is reported to have told one of the British Prime Minister’s advisers that HSBC bank in China could face retaliation if Britain bans networking equipment from Huawei Technologies.

This past January, Britain designated Huawei a “high-risk” vendor and placed a limit to Huawei’s 5G participation in the UK 5G network at 35% and excluding Huawei form the data-heavy core of the network.

In addition, there are current discussions with entirely removing Huawei out of the 5G network by 2023.

UK wants group of 10 countries to develop its own 5G technology.

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According to NDTV, Britain is seeking cooperation among 9 other nations to form a group to develop their own 5G technology in an effort to curtail dependence on China’s Huawei. One reason Britain may be leading the way because 35% of their 5G network use Huawei’s equipment. The group of countries are likely the other democractic countries in the G7 nations that include Australia, South Korea and India.

However, the current Prime Minister Boris Johnson has asked his government to draft a plan to remove Huawei equipment out of the 5G network by 2023. With a potential exit by Huawei, this would leave only two other companies to fill the void – Nokia and Ericsson.

Relations between the UK and China have worsened following passage of new security laws in Beijing that would apply to Hong Kong. Following the passage of the security law, Britain said they would offer 350,000 Hong Kong nationals holding a British National oversees passports the ability relocate to the UK.

Will new US export controls block Huawei’s 5G ambitions?

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As previously posted on my blog, the May 19th Commerce Department export rules are part of the US effort to limit Huawei’s access to semiconductor chips needed to build components in their 5G infrastructure. The new rules prohibit chipmakers located mostly in Taiwan and South Korea from using U.S. origin machines and software to produce semiconductors for Huawei.

Huawei relies on Taiwan and South Korean chipmakers to make the actual chips – however the chipmakers are now subject to the US export rules since the machines and software used are based off American machines from US companies and technology.

These new rules were meant to close a loophole that allowed semiconductor foundries to manufacture chips for Huawei as long as the manufacturing occurred outside of the U.S.

The U.S. government views Huawei as a national security threat because their hardware could potentially allow them to access sensitive information and hand it over to the Chinese government – a claim denied by Huawei.

If you have any questions how the new US export control regulations will impact your ability to do business with Huawei or one of its entities, contact export control attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

UK planning to remove Huawei equipment from its 5G networks.

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According to a Financial Times article, the UK is going to remove Huawei from their 5G network and make efforts to remove all Huawei components in the next 3 years. The move by the UK should be welcome news for the US, as Trump administration officials have been pressuring the UK to not use Huawei for their 5G network.

The US has argued that Huawei could build backdoors into network infrastructure and assist in spying efforts by the Chinese government. In the past, the US threatened intelligence efforts between the two countries could be limited if the UK does proceed with the Huawei 5G network.

The recent news developments shifts away from previous UK policy limiting how much Huawei equipment could be used in the 5G networks. Yesterday’s announcement signals a significant shift away.

Other online sources reporting the news also claim the UK response is partially due to public sentiment about China and their handling of the corona virus pandemic.

If your company exports to Huawei and have any questions about compliance with the changing export rules, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

COVID-19 victim? Huawei dropped as UK 5G vendor.

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One fallout of the COVID-19 pandemic is the United Kingdom’s recent decision to move away from China-based Huawei as the company to help build the UK’s 5G infrastructure. Last year, Prime Minister Boris Johnson (who is currently recovering from COVID-19) gave Huawei the lead in building the UK’s 5G infrastructure.

UK lawmaker Tom Tugendhat, the Conservative Party’s chairman of the House of Commons Foreign Affairs Committee, is quoted as saying: “It’s a shared realization of what it means for dependence on a business that is part of a state that does not share our values,” Tugendhat said.

This is likely welcome news to the US which was very critical of Johnson’s decision last year to go with Huawei – raising concerns by the US that China could use Huawei technology to collect intelligence.

The US viewed Johnson’s decision on Huawei as a major blow to the “five eyes” electronic surveillance alliance among the US, the UK, Canada, Australia and New Zealand. US officials fear China could use Huawei to collect intelligence.

If you or your company does business with Huawei, and you  have concerns about your export compliance, contact experienced import/export compliance attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.