Category Archives: Huawei

FedEx sues Commerce Department.

June 25, 2019 By in FedEx, Huawei, Uncategorized Tags: , , , , Leave a comment
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On Monday June 24th, FedEx filed a lawsuit against the the U.S. Department of Commerce to avoid having to follow the BIS entity list restrictions the government imposed back in May against doing business with Huawei.

A FedEx statement said “FedEx is a transportation company, not a law enforcement agency,” and that the EAR violates a shipping company’s rights to due process under the Fifth Amendment because all shipping companies are strictly liable for shipments that violate the Export Administration Regulations; without requiring evidence the shippers had knowledge of any violations.

In short, FedEx claims compliance with the new EAR regulations is impossible because FedEx cannot know the origin and technological make-up of all the contents of the shipments it handles.

Will post updates as soon as they are available.

Huawei has shipped 100 million smartphones YTD.

June 24, 2019 By in Huawei, Uncategorized Leave a comment
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According to Reuters, Huawei smartphone sales in Western Europe are increasing despite Huawei’s inclusion on the BIS entity list. While Huawei expects a $30 billion loss in revenue due to this new ban, existing phones sold before the end of the 90-day reprieve will not be affected by a future ban. Huawei has guaranteed current users of phones and apps would be supported even though Google support for future Huawei phones would end in August.

As the second largest smartphone maker behind Samsung, Huawei has shipped 100 million smartphones as of May 30th this year.

Despite the large number of phones shipped, the ban against Huawei may result in the delay of future phones – such as their foldable 5G Mate X phone.

If you have questions how the Huawei ban may impact your company, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Huawei may use Aurora or HongMeng OS for future smartphones.

June 24, 2019 By in Huawei, Uncategorized Tags: Leave a comment
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After Huawei’s inclusion on the BIS entity list, US companies such as Google have to withdraw the Android license from Huawei and therefore future smartphones by Huawei will not be able to use Google’s Play Store, and access to popular apps like Google Maps, YouTube and more.

Because of the potential to lose the Android OS, GizmoChina has reported that Huawei is looking into use of the Aurora Operating system in addition to Huawei’s inhouse “HongMeng” operating system, also called ArkOS.

Even though Huawei is already on the entity list, there is a 90-day period in which the ban will take effect.

FCC Commissioner wants Huawei gear out of US networks.

June 23, 2019 By in entity list, FCC, Huawei, Uncategorized Tags: , Leave a comment

 

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Geoffrey Starks, source: FCC.gov

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

Huawei files lawsuit against Commerce Department for seizing equipment.

June 22, 2019 By in Huawei, Uncategorized Tags: , , Leave a comment
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According to Reuters, Huawei Technologies Company, Inc. filed suit against the U.S. Department of Commerce on Friday the 21st claiming the seizure of telecommunications equipment sent from China to the US and back to China was not covered under the Export Administration Regulations (EAR).

Specifically, Huawei claims the equipment was not subject to a license requirement because it did not fit into a controlled category (ECCN) as the hardware was being returned to China from which it came.

The equipment seized is a computer server and ethernet switch sent to California for testing and then seized on the shipment back to China.

Will post more updates as they become available.

Huawei may seek higher royalties from US firms relying on Huawei’s 5G patents.

June 22, 2019 By in Huawei, Uncategorized Tags: , Leave a comment
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Reuters reported Huawei asked Verizon to pay $1 billion in royalties for use of more than 230 of Huawei’s patents on network equipment. In addition to Verizon, the Huawei CEO, Ren Zhengfei indicated Huawei may seek more royalties from other companies.

As reported by CNBC, Huawei has more than 69,000 patents worldwide and 49,379 patents pending – with 57% of patents in China and 18% in the US.

The request for additional royalties is likely due to Huawei’s inclusion on the BIS entity list, which resulted in Huawei forecasting a loss of $30 billion in revenue this year. As the ban will impact Huawei’s smartphone business, Huawei is likely to focus on other avenues for revenue – patent royalties.

7 effects of Huawei’s inclusion on the BIS entity list.

June 18, 2019 By in Huawei, Uncategorized Leave a comment
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Lots of articles on Huawei and the impact on the company following their inclusion on the BIS entity list, here’s a summary of what has been reported as potential impacts to Huawei:

1. Huawei’s projected revenue will fall from $120 billion to $100 billion;

2. 40% decrease in overseas smartphone shipments;

3. Postponing of their planned new MateBook 14 and update to the MateBook X Pro Line set for June 2019;

4. Google ended Huawei’s Android License;

5. Huawei sales of their Mate 20X and Mate X folding handset postponed in the UK and Japan;

6. Broadcom (major supplier to Huawei) lowered 2019 revenue forecast by $2 billion;

7. Huawei creating it’s own smart phone operating system compatible with Android applications.

If your company is a Huawei supplier and you have questions on how the “Huawei ban” will impact your company, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

Several US suppliers lobby for Huawei.

June 16, 2019 By in entity list, Huawei, Uncategorized Tags: Leave a comment
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According to a Reuters report on June 16, 2019, several American companies such as Qualcomm, Intel and Micron Technology, Inc. are asking the US government to allow sales to Huawei’s units that sell smart phones and computer servers. The American companies claim the smart phone and computer server units operated by Huawei do not present the security concern of Huawei’s 5G networking gear.

The lobbyists indicate that in 2018, Huawei purchased $70 billion in components, $11 billion of which went to US companies Qualcomm, Intel and Micron Technology, Inc.

In addition, members of the Semiconductor Industry Association (SIA), a trade group, also are lobbying on Huawei’s behalf arguing the smart phone and computer server technology is not related to the US concerns over national security. Despite the widespread lobbying efforts on behalf of Huawei (Google included), Huawei has indicated they have had no part in the lobbying efforts.

If you have any questions how the inclusion of Huawei to the entity list will impact your business, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

Huawei executive: willing to sign a “no-spy agreement”.

June 4, 2019 By in entity list, Huawei, spying, Uncategorized Tags: Leave a comment
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According to an NPR article on June 4th, a Huawei executive said Tuesday that the company is willing to sign a “no-spy agreement” with the United States to assuage fears the company’s technology could be used for spying.

While Huawei is one of China’s most successful technology companies with operations worldwide and one of the largest smartphone makers and providers of 5G telecommunications equipment, many Western Countries have voiced concerns over the security of Huawei’s products.

Last month, the U.S. Commerce Department added Huawei to Entity List which prevents American businesses from selling technology to Huawei without government approval.

More Huawei news and repeat of the same royalty-free image will be posted as news becomes available. If you have any questions how your company may be impacted by Huawei and its affiliates inclusion on the entity list, contact David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

Huawei challenging constitutionality of US ban.

May 29, 2019 By in Huawei, NDAA, Uncategorized Tags: , , , , Leave a comment
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Yesterday, Huawei filed a motion in court to challenge a ban against Huawei in the most recent National Defense Authorization Act (NDAA) passed last August 13, 2018.

The NDAA language banning US government agencies is found here:

SEC. 889. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT.

(a) Prohibition On Use Or Procurement. – (1) The head of an executive agency may not—

(A) procure or obtain or extend or renew a contract to procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system; or

(B) enter into a contract (or extend or renew a contract) with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.

Huawei’s main argument is the ban is unlawful because it targets a specific person – Huawei and its entities.

The NDAA (defense budget) does specifically mention Huawei and ZTE when it included:

(3) COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES.—The term “covered telecommunications equipment or services” means any of the following:

(A) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

The government claims the ban is for national security reasons. Previous bans included a federal ban on software from Russia-based Kaspersky Lab. Kapersky also filed a legal challenge but the government prevailed in court due to national security issues. It is unclear whether this court will rule similarly.

Will update as soon as more information becomes available.