Britain confirmed to quit Huawei in its 5G network.

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According to the Voice of America quoting a British political insider – the British government will quit plans to use Huawei technology in its 5G network, with an announcement coming soon. The announcement will also discuss the gradual removal of the current Huawei technology in place. Part of the decision is due to the COVID-19 crisis and public disillusionment with Beijing along with strong opposition to Huawei from senior members.

The VOA article stated initial public support for Huawei changed due to China’s handling of the coronavirus and the situation over Hong Kong. Lastly, the article mentions Britain’s Prime Minister Johnson’s fight against COVID-19 also likely resulted in a tougher view towards China.

In response, Huawei launched an advertising campaign reminding the British public of their 20 year involvement in the UK and their “commitment to helping bring fast reliable mobile and full fiber broadband networks to every part [of] the country.”

The United States will likely welcome the news as they have been lobbying the UK government and according to a statement from Secretary of State Mike Pompeo: “The United States stands with our allies and partners” and “stands ready to assist our friends in the U.K. with any needs they have, from building secure and reliable nuclear power plants to developing trusted 5G solutions that protect their citizens’ privacy,” Pompeo said.

It will be interesting to see whether Nokia or Ericcson are picked to replace Huawei in England. Will post more as news becomes available.

UK wants group of 10 countries to develop its own 5G technology.

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According to NDTV, Britain is seeking cooperation among 9 other nations to form a group to develop their own 5G technology in an effort to curtail dependence on China’s Huawei. One reason Britain may be leading the way because 35% of their 5G network use Huawei’s equipment. The group of countries are likely the other democractic countries in the G7 nations that include Australia, South Korea and India.

However, the current Prime Minister Boris Johnson has asked his government to draft a plan to remove Huawei equipment out of the 5G network by 2023. With a potential exit by Huawei, this would leave only two other companies to fill the void – Nokia and Ericsson.

Relations between the UK and China have worsened following passage of new security laws in Beijing that would apply to Hong Kong. Following the passage of the security law, Britain said they would offer 350,000 Hong Kong nationals holding a British National oversees passports the ability relocate to the UK.

UK planning to remove Huawei equipment from its 5G networks.

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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, dh@gjatradelaw.com.

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

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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, dh@gjatradelaw.com.

US – UK trade deal by end of the year?

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With the UK set to formally leave the EU at 11:00 pm next Friday, January 31st, both the US and the UK have expressed strong interest in forming their own trade deal expected to be reached by the end of the year.

The goal at the end of the year reflects a comment by US Treasury Secretary Mr. Mnuchin in December 31 stating he wanted an “aggressive timeline” and that “It’s an absolute priority of President Trump and we expect to complete that within this year.”

Besides the US, it is expected that the UK seek trade deals with world wide and even the EU. EU negotiator Michel Barnier mentioned that “We are looking at a possibility of a relationship in the trade side where we will have zero tariffs and zero quotas between the EU and UK.” This would be the first for any non EU party and would allow access to the 450 million people under the EU umbrella.

Post Brexit US, Britain trade deal?

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According to the Associated Press, at last week’s visit to London, Vice President Pence indicated to Britain’s Prime Minister Boris Johnson that President Trump would be eager to reach a new trade deal with the UK once the UK leaves the European Union with the AP quoting Vice President Pence: “The minute the U.K. is out, America is in”.
While the US may be eager to join a trade deal, the AP cited British officials who are hesitant to entering into any deals that may favor the US. For example, the EU agriculture policy benefits British farmers, and any trade deal will include US demands for more access for agricultural products.
Another trade issue that will arise post-Brexit is between the UK and Ireland. With the
UK and Ireland belonging to the EU, free trade of people and goods has moved across the border with no problem. However, post-Brexit, this may complicate a new trade deal with the UK. In 2018, the UK was America’s 4th biggest export market with a US trade surplus of $18.6 billion.

Canada’s Global Affairs consults whether South Korea, Taiwan, Thailand and the UK should join CPTPP.

The Global Affairs Canada organization includes individuals, businesses (including SMBs), industry associations, experts, consultants, academics, civil society organization, labour unions, governments, indigenous groups, students and youth and other interested Canadian stakeholders.

In late July, Global Affairs Canada started discussions whether South Korea, Taiwan, Thailand and the United Kingdom should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”).

An announcement was published in the Canada Gazette, Part 1. Global Affairs Canada has has begun soliciting comments for whether these countries (and China) should join the CPTPP. The deadline for submissions is midnight, August 25, 2019.

The announcement asks for the following information:

1. Contributor’s name and address and, if applicable, the name of the contributor’s organization, institution or business;
2. The specific issues being addressed; and
3. Where possible, precise information on the rationale for the positions taken, including any significant impact it may have on Canada’s domestic or international interests.

Additionally, they would like feedback on specific markets that Canadians and businesses would support entry to the CPTPP.

The full text of the announcement and additional topics Global Affairs Canada would like feedback on can be found here:

http://www.gazette.gc.ca/rp-pr/p1/2019/2019-07-27/html/notice-avis-eng.html#nL5