Huawei 5G technology coming to the US?

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As Huawei is on the US Commerce Department’s Entity List, Huawei is prevented from doing business with US companies without permission (ie without a license from BIS).
However, media outlets report that Huawei is discussing licensing of their 5G technology to unnamed American companies who have shown interest in long term and one-time transfers. Even a license to an American company may be a violation even if no goods exchange hands.
The Huawei inclusion on the entity list is part of an effort to prevent suspected Chinese government surveillance onto their communications equipment.
If you or your company is interested in doing any business with Huawei – contact experienced BIS/trade compliance attorney David Hsu by text/phone at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Huawei admits they are impacted by US blacklist.

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According to a recent Forbes article, Huawei has confirmed the U.S. blacklist in place since May is impacting their ability to offer Google software onto their mobile phones. The Forbes article also says Huawei has not finished their in house operating system.
The black list that took effect in May restricts Huawei from access to the US supply chain for software and hardware. While Huawei has been able to source non US goods for the hardware, they have not been able to replace Google’s Android software.
While our blog earlier indicated Huawei would be launching their own in-house operating system, it is not yet ready for smart phones. Huawei has launched their Harmony OS, but that software is limited to smart TVs.
While not mentioned in the article, without Google’s Play Store, Huawei users will likely have to download APK files from online if they want to install their aps onto a new Huawei phone.
Things for Huawei will also get worse next month – this November marks the expiration of a temporary exemption on certain suppliers.
If you  have any questions how your company may be impacted by the trade restrictions with Huawei, contact experienced export compliance attorney David Hsu by text/phone at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Huawei claims they are victims of 1 million cyber attacks daily.

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According to a Forbes.com article, the Huawei security chief, John Suffolk claims Huawei is cyber attacked almost 1 million times per day on the Huawei networks and computers. According to their security chief, most of the attacks are looking for intellectual property theft as Huawei leads the world in 5G technology. In response to these attacks, Huawei has pledged to work with their customers to secure their defenses from further cyber attacks.
On the other hand, the US government has alleged that Huawei receives Chinese state support and as such is subject to assisting Beijing with intelligence gathering overseas through backdoors in their hardware.
The US is not alone in its suspicion, the Forbes article also cites a EU report warning of the “combination of new technologies and 5G networks risks hostile state control of critical infrastructure, logistics, transportation even law enforcement”. The EU report did not cite China or Huawei but the article did indicate that 5G suppliers from countries “with poor democratic standards,” for which the reference to Huawei and China was clear.
If you do business with Huawei and have questions about maintaining Huawei compliance, contact export compliance attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Newest Huawei P30 smartphone ships with Google Android 10.

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Despite a current ban on US companies from supplying technology to Huawei, the new P30 Pro features a 6.47 inch display, 4 cameras and Google’s  Android 10 (Android 9 “Pie”was the last Android version to be released with a name associated with a confectionary food).
While Google was exempt from export restrictions imposed against Huawei and the supplying of software for new products. Future Huawei smartphones such as the 5G Mate 30 Pro may include the Huawei developed Harmony OS.
If your company does business with Huawei and you want to be sure you are in compliance, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Intel has begun selling to Huawei as US loosens restrictions.

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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 attorney.dave@yahoo.com, dh@gjatradelaw.com.

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.

China’s #2, – Premier Li Keqiang eases trade tensions with the US.

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According to the New York Times, China’s Number 2 official, Premier Li Keqiang speaking at the World Economic Forum in the Chinese port city of Dalian, promised to cut tariffs, loosen restrictions on foreign investments, protect intellectual property rights and allow foreign companies to apply for China’s generous subsidies for research and development.

Speaking during a question and answer session, Li also said that China would allow foreign financial services companies into its market a year earlier than previously promised, and that it would rewrite many rules on foreign investment.

The NYT mentioned the lack of details, and indicated previous vague promises by Chinese officials in the past.

In addition to extending an olive branch to foreign companies, Premier Li’s remarks also sought to calm worries about the relocation of manufacturing overseas as a result of the Section 232 and 301 duties levied against China.

If you have questions how the China duties will impact your business, contact David Hsu by phone/text at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

US Trade Representative Lighthizer will meet with tech CEOs.

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According to anonymous sources, U.S. Trade Representative Robert Lighthizer will meet with CEO’s from Google, Microsoft, Qualcomm and Oracle today in Silicon Valley.

The topics likely center around intellectual property protections, the ongoing trade war, reports of bias in news searches, emerging technologies such as 5G, AI and robotics.

Other topics could include the Trump Administration’s plan to increase restrictions on exports of new technologies to China due to national security concerns. The new technologies include AI, quantum computing, and speech recognition.

Check back for more news as they become available.

Huawei CFO arrested in Canada for violating U.S. sanctions on Iran.

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According to Bloomberg – Huawei’s CFO, Wanzhou “Sabrina” Weng was arrested in Canada on December 1st over Huawei’s potential violations of U.S. sanctions on Iran. Sabrina Weng is the deputy chairwoman and daughter of Huawei founder Zhengfei Ren.

The arrest prompted China’s embassy in Canada to demand Sabrina be released and for the US and Canada to “rectify wrongdoings” and to “to clarify the grounds for the detention, to release the detainee and earnestly safeguard the legitimate rights and interests of the person involved”.

It is not known when or if Sabrina will be expedited to the US.

Check back for more updates as they are available. If you have any questions about your company’s compliance with US export controls and or want to ensure your company is in compliance with all the sanctions and laws regarding exporting, contact David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

Deal reached between the US and ZTE.

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Credit: Courtesy of ZTE Corporation

The US will end the ban on ZTE buying American software and hardware.

The terms of the deal require:
1. $1 billion penalty;
2. $400 million in escrow to be forfeited in the event of future export violations during the 10-year probationary period;
3. Compliance team in ZTE that will report to the company’s new chairman;
4. ZTE must change board and management team in 30 days.

Various online articles covering the US/ZTE deal ask what the US gets out of the ZTE deal.

None of the news sources mention that this deal saves ZTE and will lead to business for US suppliers of components and software to ZTE:

-Acacia Communications Inc
-Oclaro,
-Lumentum Holdings,
-FiberHome
-NeoPhotonics Corp
-Inphi Corp
-Finisar Corp
-Analog Devices Inc
-Xilinx Inc
-Qualcomm
-Qorvo Inc.
-Alphabet Inc

If you or anyone you know has questions about the ZTE deal or export compliance questions, feel free to contact experienced trade attorney, David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.