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.

China threatens retaliation if India bans Huawei.

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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.

US Companies can no longer do business with Huawei on August 19th.

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

Trump administration bars federal agencies from buying ZTE or Huawei technology.

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Last year, Congress passed the defense spending bill that included a provision barring all federal agencies from purchasing Huawei and ZTE equipment due to concerns Chinese technology contained within those devices may pose a national security concern.
One year later, the new prohibition will take effect August 13th – this prohibition also includes Chinese companies Hytera and Hikvision. Next year, federal conttractors will be subject to this prohibition, although waivers will be available to contractors on a case-by-case basis.
Huawei has challenged the ban in court but no decision has been made.

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.

Huawei’s Android alternative to make first debut … but not on a phone.

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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.

Intel CEO talks about Huawei ban.

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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.