According to a Reuters article, China has warned India not to block Huawei from doing business in the country, warning there could be consequences for Indian firms operating in China.
Part of the warning comes as India is holding trials for a 5G networking in the upcoming months and has not yet determined whether they will invite Huawei to take part in the rollout of 5G in India.
The Reuters article says Indian companies do not have a larger presence in China, but do have manufacturing, healthcare, financial services and outsourcing companies there.
India is currently evaluating bids from 5G firms such as Ericcson, Nokia, Samsung and officials have not yet confirmed Huawei will take part. The Indian Department of Telecommunications have found no evidence of Huawei capabilities of a backdoor or malware to collect data and the Indian Ministry of Home Affairs has issued no directive to curtail Huawei’s entry.
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 email@example.com, firstname.lastname@example.org.
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 email@example.com, firstname.lastname@example.org.
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.
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.
According to the New York Times, telecommunications companies in Vietnam are avoiding using Huawei equipment in their 5G plans. The NYT article finds this unusual as companies in Thailand, Indonesia, Cambodia, Laos and Malaysia have already welcomed Huawei for their 5G plans.
However, in Vietnam the major wireless carriers are working with Ericsson and Nokia for their 5G collaborations. A spokesperson for government owned Viettel stressed the company is not prohibited from using Huawei equipment.
The NYT article cites Major General Le Van Cuong, the former director of the Institute of Strategic Studies at the Vietnamese Ministry of Public Security states that Vietnam should view China as a cyber security threat if “a superpower like America regards China as a cybersecurity threat”.
Vietnam currently has a majority of its people connected to 4G and hopes to have 5G connections countrywide by 2020.
As China is Vietnam’s largest trading partner, Vietnam has supported previous initiatives such as Beijing’s Belt and Road Initiative. However, both sides claim portions of the disputed South China Seas which has led to tensions between the two countries, even though China is Vietnam’s largest trading parter.
While Vietnamese telecom companies have cooperated with Ericsson and Nokia, it is unsure whether those carriers will speak to Huawei.
The NYT article also says Viettel is developing their own software and equipment in house, employing 300 engineers in research and development. he also notes that 1,000 of the 4G base stations across Vietnam, Cambodia and other countries are also self-produced by Viettel.
Well, not exactly Huawei, but at least Huawei’s smartphone division. After backtracking on sanctions, Huawei’s shipments for 2019 are estimated to be 260 million units and more. This new forecast even beats the pre entity list placement forecast of 250 million units.
According to the Bloomberg article cited several reasons for increased smartphone sales: (1) inclusion of Google play store apps for future smart phones, and (2) increased Chinese domestic sales of Huawei devices that may result from consumers supporting a domestic company.
Ultimately, Trump’s reversal of the Huawei ban (for devices not a threat to national security) has ultimately saved Huawei and their smartphone sales. Over the past two months, there have been multiple reports of canceled phones and laptops (new Matebook); we can expect to see those new devices in the near future as a direct impact of President Trump’s reversal at the G20 summit.
If you export any goods that may contain Huawei parts or components, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at email@example.com, firstname.lastname@example.org.
As reported by the Wall Street Journal, Chinese telecommunications firm Huawei will lay off hundreds of workers at their research subsidiary – Futurewei Technologies. Futurewei is the US-based research and development arm for Huawei and employs roughly 850 people nationwide.
According to public records, Futurewei was founded in 2001 in Plano, Texas. I just checked online, and the website www. futurewei.com already appears to be offline.