This past Wednesday, the U.S. Department of Commerce added China General Nuclear Power Group (CGN) to the BIS entity list. As a result, American companies are now prevented from selling any products to China’s largest state-owned nuclear company. If any American company or person does business with CGN (or any other listed entity), they would be violating the law and subject to persecution.
The U.S. Department of Commerce claims CGN its subsidiaries engaged in activity to acquire advanced U.S. nuclear technology and material for use in the Chinese military.
China claims the real goal of placing CGN on the entity list is to limit China’s growth under China’s “Made in China 2025” initiative. Made in China 2025 is an effort by the Chinese government to increase the high tech capability and manufacturing of China. If successful, the “Made in China 2025” efforts will make China the a superpower in high technology in Asia.
If you have any questions about your company’s operations and want to ensure compliance with the new entity list addition, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
In May, the Trump administration placed Huawei on the BIS entity list – a list of foreign organizations with whom U.S. companies are restricted from doing business with due to national security concerns. The Trump administration believes the Chinese government has influence over Huawei and that certain Huawei equipment and technology may allow the Chinese government to spy using the Huawei equipment – especially the planned 5G equipment Huawei has developed.
Even though Huawei is on the BIS entity list, the Trump administration issued a 90-day exemption to the ban, allowing U.S. companies to sell certain products and services to Huawei. However, this 90-day exemption will end on Monday, August 19th.
It is unknown whether the U.S. government will issued another extension. Given the current situation in Hong Kong and the lack of progress on US/China trade talks, the Trump administration will likely not grant another extension.
Will post any additional Huawei news as it becomes available. If you have any questions or concerns about whether your business can continue business with Huawei, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
Since the US eased restrictions on supplying components to Huawei, the largest US chimpaker, Intel, said they have begun selling products to Huawei “within the rules of the law”. Additionally, Intel says they are also requesting an export license to sell “general purpose computing” chips to Huawei that do not pose a national security risk.
As you are aware, the Trump administration raised concerns regarding the use of Huawei technology may contain backdoors that would allow the Chinese government to spy on users, posing a national security risk. As a result, the US Department of Commerce added Huawei to their entity list this past May. Inclusion on the entity list precluded Huawei from buying parts and components from American companies without US government approval (an export license).
However, after the Trump met with Chinese President Xi Jinping at the G20 summit last month, President Trump said that US firms can resume selling equipment to Huawei.
Additionally, earlier in July, Commerce Secretary Wilbur Ross announced an easing of restrictions against the Chinese company in line with Trump’s statements after the G20 summit, stating that the US would issue licenses to US companies looking to sell to Huawei as long as the sales do not pose a threat to national security. An export license would still be required as Huawei has not been removed from the entity list.
If you have any questions whether your company can continue to do business with Huawei, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
At the G-20 summit, President Trump announced that US companies could sell to Huawei. Today, the Trump administration filled in the rest of the details by announcing a relaxation of the restrictions against selling to Huawei – limited the ban only to products that are related to national security.
Yesterday, Commerce Secretary Wilbur Ross announced that that licenses would be issued to companies to sell their products to Huawei under certain conditions.
On Tuesday Wilbur Ross, the commerce secretary, said that Washington would issue licences to companies to sell their products to the Chinese telecoms equipment maker under certain conditions. The main condition being “no threat to US national security”. As Huawei is still on the BIS entity list, companies that sell products not harmful to US national security will still need to apply for a license.
If you have questions about the Huawei ban or would like to apply for an export license, contact export compliance attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
Despite a recent reprieve prohibiting doing business with Huawei, Huawei is still going forward with their Hong Meng OS, an alternative to Android.
Based off testing on Chinese handset brands Oppo and Vivo, it is believed that Hong Meng OS is 60% faster than Android. In addition, Huawei is also preparing an app store alternative to Google’s Play and Apple’s App store.
In the same interview, Huawei’s CEO also countered speculation that Huawei handsets could be used for surveillance by talking up Huawei’s protection of user data, claiming it would never hand over data to the Chinese government because it would be too risky for its reputation internationally, stating:
“We will never do such a thing. If I had done it even once, the US would have evidence to spread around the world. Then the 170 countries and regions in which we currently operate would stop buying our products, and our company would collapse,” he told the Financial Times.
“After that, who would pay the debts we owe? Our employees are all very competent, so they would resign and start their own companies, leaving me alone to pay off our debts. I would rather die.”
If you have any questions how the Huawei ban may impact your business or want to be sure your export compliance program meets the ever-changing needs, contact experienced trade attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
According to the folks at Android Authority, citing a Nikkei conducted teardown of Huawei’s new flagship device, revealed that only 0.9 percent of the components in a P30 Pro come from the US – in other words, only 15 US parts out of a total of 1,631 parts.
Dollar wise, the total US components cost $59.36 out of the $363.83 total component price. The parts from the US include the DRAM from Micron, parts from Skyworks, Qorvo and the Gorilla Glass from Corning.
As reported by CNN Hong Kong, Facebook has stopped allowing Huawei to preinstall the Facebook application on Huawei smartphones in response to Huawei’s inclusion on the BIS entity list.
Huawei is the second largest smartphone brand in the world (behind Samsung) and the target of a US export ban. The US is concerned Huawei equipment can be used for Chinese spying, a claim vehemently denied by Huawei. Any US firms that supply to Huawei will need a license in order to export software, goods or service to Huawei.
If you have any questions about how the Huawei export ban may impact your business, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
Micron Technology Inc. based in Idaho manufactures chips for smartphones and other devices. Following the inclusion of Huawei on the entity list, Micron has determined they could resume shipment of their products to China as the products are not subject to EAR or entity list restrictions.
News of the continued shipment caused Micron stock to rise as high as 10%. Besides Micron, the New York Times has reported that Intel also started to resume shipments of their chips to Huawei.
In another blow to Huawei, the current acting FCC commissioner, Democrat Geoffrey Starks says the US government should replace Chinese telecommunications gear currently installed on US networks.
As you are aware, the Commerce Department added Huawei to the BIS entity list in May of this year over concerns the Chinese government’s connection to Huawei could compromise US national security. Huawei’s addition to the entity list prohibits US companies from supplying parts and service to Huawei.
The reason the FCC commissioner wants to remove all Huawei equipment is out of fear foreign governments may disrupt US communication networks during times of national emergencies.
The full cnet interview is an interesting read if you have time and can be found here.
If you or your company supplies equipment to Huawei and want to know how the entity list inclusion of Huawei will impact your business, contact David Hsu by phone/text at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.