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 General Nuclear Power Group added to BIS entity list.

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This past Wednesday, the U.S. Department of Commerce added China General Nuclear Power Group (CGN) to the BIS entity list. As a result, American companies are now prevented from selling any products to China’s largest state-owned nuclear company. If any American company or person does business with CGN (or any other listed entity), they would be violating the law and subject to persecution.

The U.S. Department of Commerce claims CGN its subsidiaries engaged in activity to acquire advanced U.S. nuclear technology and material for use in the Chinese military.

China claims the real goal of placing CGN on the entity list is to limit China’s growth under China’s “Made in China 2025” initiative. Made in China 2025 is an effort by the Chinese government to increase the high tech capability and manufacturing of China. If successful, the “Made in China 2025” efforts will make China the a superpower in high technology in Asia.

If you have any questions about your company’s operations and want to ensure compliance with the new entity list addition, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

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.

GitHub blocks developers in countries facing US trade sanctions.

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GitHub (owned by Microsoft) is the world’s largest software development platform that provides hosting for software development version control using Git. It was acquired by Microsoft in 2018 for $7.5 billion and has recently started blocking developers in countries facing US trade sanctions.

For example, last week Github restricted the account of Anatoliy Kashkin, a 21-year-old Russian citizen who lives in Crimea. He was told his GitHub account had been restricted “due to US trade controls”.

The correspondence from GitHub advised Kashkin of GitHub’s US trade control policy – listing Crimea, Cuba, Iran, North Korea, and Syria as countries facing US sanctions. In addition to his website now showing a 404 error, Kashkin also can’t access his previous work.

GitHub’s website does advise that “Users are responsible for ensuring that the content they develop and share on GitHub.com complies with the U.S. export control laws, including the EAR (Export Administration Regulations) and the US International Traffic in Arms Regulations (ITAR)” and that “The cloud-hosted service offering available at Github.com has not been designed to host data subject to the ITAR and does not currently offer the ability to restrict repository access by country. If you are looking to collaborate on ITAR- or other export-controlled data, we recommend you consider GitHub Enterprise Server, GitHub’s on-premises offering.”

Besides banning accounts for individuals in Crimea, GitHub has also restricted developers in Iran.

If you want to ensure your company is in compliance with the Export Administration Regulations and the US International Traffic in Arms Regulations (ITAR), contact experienced compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

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.

Treasury Secretary Mnuchin urges US suppliers to seek export licenses if they want to resume sales to Huawei.

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As reported by the Wall Street Journal, Treasury Secretary Steven Mnuchin asked U.S. suppliers of Huawei to apply for export licenses in order to resume sales to the Huawei. The export licenses are required as Huawei is listed on the BIS entity list.

At last month’s G20 meeting, Trump announced the ability for US companies to sell to Huawei if there was no threat to “U.S. national security”.

I just checked the BIS website and there are no published guidelines regarding products that would be eligible for a license and what components may be a threat to national security.

While both the US and China agreed to new meetings, there have also been no set dates for new face-to-face meetings.

If you need assistance applying for an export license to sell to Huawei or any other entity on the BIS list, or have questions how the Huawei ban will impact your business, contact experienced export attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.