US paying Brasil to not use Huawei?

people having a party holding yellow and green flag
Photo by Anna Kapustina on Pexels.com

According to Reuters on October 20th, a US trade delegation visited Brazilian President Bolsonaro to offer financing to telecommunications companies that purchase network equipment from suppliers other than Huawei.

China is Brazil’s biggest trading partner and Huawei currently supplies equipment to telecommunications companies. Brazil plans to auction the 5G spectrum next year and this effort may be an attempt to convince Brazilian authorities to look at other 5G suppliers.

If successful, Brazil would join the US, UK, Australia, Sweden and Japan as countries already taking a position on banning Huawei into their 5G network.

Do you supply Huawei equipment or parts to Huawei and have questions about the export control ban? If so, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Huawei Docs to replace Office, Google Docs and iCloud?

apple internet technology computer
Photo by Zana Latif on Pexels.com

2 days ago, Huawei announced “Huawei Docs”, an office productivity software suite with individual software titles: Document, Spreadsheet and Presentation – clear alternatives to Microsoft’s Word, Excel and Power Point. Take a page from Google, Huawei Docs claims to support over 50 types of file formats and “Huawei Drive” allows users to save changes to the same document across all devices using their “Huawei ID.”

For Huawei users, Huawei Docs is avialable on all Huawei Mate 40 devices worldwide. While Huawei is number one in the world for most phones shipped, this new office productivity software can only increase sales.

Ultimately, I believe this move by Huawei is a result of the export ban on Huawei – preventing Huawei from accessing Google software and or Microsoft apps found on the Google play store.

Do you supply goods to Huawei and want to know if you are in compliance with the current export regulations? Contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com for a no-cost consultation.

Will Huawei sell their “Honor” phone brand to avoid US sanctions?

apps blur button close up
Photo by Pixabay on Pexels.com

According to a Reuters article on October 14th, Huawei Technologies Co. Ltd. is in talks with Digital China Group, TCL, and/or Xiaomi to sell their “Honor” brand smartphone business. Honor was established in 2013 as Huawei’s budget line of smart phones. It is believed the new deal may earn Huawei more than $3.5 billion dollars.

One benefit of the sale away from Huawei – would be Honor’s ability to purchase materials from US suppliers. The deal, if sold would include the Honor brand, research and development, and the supply chain management business.

If you export goods overseas or have any questions about how to avoid violating export penalties for violating US sanctions – contact export attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Huawei chip supply diminishing due to US export sanctions, may soon halt production of their Kirin chipset.

green motherboard
Photo by Pixabay on Pexels.com

As you are aware, in May 2019 the US Government added Huawei and its affiliated entities to the entity list – preventing US firms from selling technology to Huawei without a license. Huawei was to remain on the list until 2021. However, in May 2020, the US Department of Commerce changed the export rule to stop any shipment of semiconductors chips to Huawei from any company that produced chips using US software and technology, unless they applied for a license.

The May 2020 revised rule had an immediate impact on Huawei. For example, Taiwan Semiconductor Manufacturing Company (world’s largest semiconductor manufacturer) stopped accepting any orders for Huawei in May following the new rule.

Huawei’s consumer business unit CEO Richard Yu, said the chips purchased from foreign semiconductor manufacturers that use US software and technology will stop production on September 15th. Without chips from foreign manufacturers, Huawei will no longer be able to manufacture their Kirin chips.

If you have any questions about Huawei or want to ensure you are not violating any export controls, contact David Hsu by phone/text anytime at 832-896-6288 or by email at attorney.dave@yahoo.com.

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

Photo by Pok Rie on Pexels.com

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.

person-woman-park-music

Photo by Breakingpic on Pexels.com

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.

Bill introduced to ban government employees from using Huawei, ZTE products.

night skyline skyscrapers shanghai

Photo by Manuel Joseph on Pexels.com

Senators Ted Cruz and Josh Hawley will introduce a bill banning US officials from using projects from Chinese companies that have been deemed to be national security threats. In the past, Chinese companies such as Huawei and ZTE have been deemed to be national security threats.

The proposed legislation is named the “Countering Chinese Attempts at Snooping Act” and would prohibit federal employees from conducting official business through technology from companies deemed by the State Department to be under the control of the Chinese government.

If passed, the bill would also require the State Department to create a list of companies supported by the Chinese company that could pose a threat and be used to conduct espionage.

This proposed legislation comes one month after President Trump signed into law legislation that barred the use of federal funds to purchase equipment from Huawei and ZTE.

If you have any questions about export compliance or think it’s time to revisit your compliance program, contact experienced compliance attorney David Hsu for a no-cost consultation by/phone or text at 832-896-6288 or by email at attorney.dave@yahoo.com.

New rules on exports to China, effective June 29, 2020.

mountains clouds historical great wall of china

Photo by Manuel Joseph on Pexels.com

Yesterday, the Federal Register published new guidelines by the Bureau of Industry and Security governing the export, reexport and transfer of goods to the People’s Republic of China (PRC).

The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to expand license requirements on exports, reexports, and transfers (in-country) of items intended for military end use or military end users in the People’s Republic of China (China).

The first major change will require U.S. companies to obtain a license before selling certain items in China that can support the military, even if the products are for civilian use. Previously, a loophole allowed an exception for civilian technology to be exported with a license.

The new regulations will impact several industries in the US, such as the semiconductor industry.

The second major change will require U.S. companies to file declarations for all exports to China, regardless of value.

A third proposed rule change will require foreign companies shipping American goods to China to seek approval from the US prior to export.

There will be a brief comment period to collect information on the proposed changes.

If you would like to submit a comment, or if you would like an evaluation of your company’s export (and import) compliance program, or have any trade questions – contact experienced trade law attorney David Hsu by phone/text at anytime: 832-896-6288 or by email at attorney.dave@yahoo.com

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

pexels-photo-3386511

Photo by Andre Moura on Pexels.com

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.

Potential changes to the Foreign Direct Product Rule may hinder Huawei supply chain.

board-printed-circuit-board-computer-electronics-163125

Photo by Pixabay on Pexels.com

The Trump administration has agreed to changes to the Foreign Direct Product Rule, which subjects some foreign-made goods based on U.S. technology or software to comply with U.S. regulations.  The proposed rule change requires foreign companies that use U.S. chip making equipment to obtain a license before they can supply certain semiconductor chips to Huawei.

The proposed rule change is to limit the number of foreign suppliers who continue to supply chips to Huawei. The new rule will greatly impact Huawei as most chip manufacturers use equipment produc Multiple articles on this subject cite the Taiwan-based “Taiwan Semiconductor Manufacturing Company” (TSMC). TSMC is Taiwan’s largest semiconductor manufacturer with over 15 fabs located throughout Taiwan.

If you have any questions whether you are subject to export controls or if you want to know how you are impacted, contact experienced export controls attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.