Huawei’s Google maps alternative.

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As you are aware, Huawei’s inclusion on the US entity list means no access Android and the Google Play Store. As a result Huawei has been looking at alternative companies to replace the Google Maps application – and last week, found their replacement.

According to Reuters, Huawei reached a deal with Dutch mapping company, TomTom which will see TomTom providing Huawei access to their navigation, mapping and traffic information.

With the TomTom information, Huawei will create their own proprietary apps for their own Harmony Operating System.

If you have any questions how Huawei’s inclusion on the BIS entity list will impact your business or if you are in need of export compliance, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Department of Justice charges Indonesian citizen and companies with exporting goods to Iranian airline Mahan Air.

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According to a Department of Justice (DOJ) filing found here, the DOJ charged an individual Indonesian citizen and several Indonesian based companies for violating US export control of goods to Iran. Specifically, the charged individual and companies worked together to export goods originating from the US to Iranian airline Mahan Air. The complaint says the Indonesian national and companies shipped goods owned by Mahan Air through the following Indonesian companies: PT MS Aero Support (“PTMS”), PT Kandiyasa Energi Utama (“PTKEU”) and PT Antasena Kreasi (“PTAK”) .

The charge against the defendants include (i) unlawful and attempted export to an embargoed country, (ii) conspiracy to launder monetary instruments and (iii) false statements.

If you do not want to be the subject of DOJ investigation, call experienced trade controls attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com. Initial consultations are free, contact us to figure out how to protect you and your company from the many hazards of exporting US goods overseas.

Huawei shipping phones made without US components.

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As a result of the current export ban on US companies to do business with China’s Huawei, Huawei’s latest flagship (the Mate 30) is now shipping without US parts.

According to arstechnica.com, the new Mate 30 includes flash memory from Samsung (Korea) or Japan’s Toshiba and chips from US based Skyhook and Qorvo have been replaced by Huawei’s own HiSilicon versions.

As the article mentions, while sourcing non-US hardware isn’t a problem for Huawei, the biggest problem is software and app support. Huawei cannot use Google apps or Google’s Play store for users to download apps. As a result, popular apps like Netflix, Facebook, Twitter, Uber, Lyft and Amazon are not found on the Mate 30 phones.

In addition to including Huawei on the sanction list, the White House may consider putting Huawei on the Treasury Department’s “Specially Designated Nationals” (SDN) list, effectively prohibiting Huawei from the US banking system.

If you have any questions about the Huawei export ban, or are interested in updating your company’s compliance program to become compliant with the multiple landmines that occur when exporting, contact experienced trade compliance attorney David Hsu by phone/text 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.

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.

Huawei CFO arrested in Canada for violating U.S. sanctions on Iran.

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According to Bloomberg – Huawei’s CFO, Wanzhou “Sabrina” Weng was arrested in Canada on December 1st over Huawei’s potential violations of U.S. sanctions on Iran. Sabrina Weng is the deputy chairwoman and daughter of Huawei founder Zhengfei Ren.

The arrest prompted China’s embassy in Canada to demand Sabrina be released and for the US and Canada to “rectify wrongdoings” and to “to clarify the grounds for the detention, to release the detainee and earnestly safeguard the legitimate rights and interests of the person involved”.

It is not known when or if Sabrina will be expedited to the US.

Check back for more updates as they are available. If you have any questions about your company’s compliance with US export controls and or want to ensure your company is in compliance with all the sanctions and laws regarding exporting, contact David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

Deal reached between the US and ZTE.

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Credit: Courtesy of ZTE Corporation

The US will end the ban on ZTE buying American software and hardware.

The terms of the deal require:
1. $1 billion penalty;
2. $400 million in escrow to be forfeited in the event of future export violations during the 10-year probationary period;
3. Compliance team in ZTE that will report to the company’s new chairman;
4. ZTE must change board and management team in 30 days.

Various online articles covering the US/ZTE deal ask what the US gets out of the ZTE deal.

None of the news sources mention that this deal saves ZTE and will lead to business for US suppliers of components and software to ZTE:

-Acacia Communications Inc
-Oclaro,
-Lumentum Holdings,
-FiberHome
-NeoPhotonics Corp
-Inphi Corp
-Finisar Corp
-Analog Devices Inc
-Xilinx Inc
-Qualcomm
-Qorvo Inc.
-Alphabet Inc

If you or anyone you know has questions about the ZTE deal or export compliance questions, feel free to contact experienced trade attorney, David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

ZTE facing $1.7 billion penalty?

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Reuters reports the Trump administration may seek a penalty up to $1.7 billion from ZTE. In addition to the hefty fine, the U.S. Department of Commerce is also seeking unrestricted access to sites to verify US components are being used as claimed by ZTE.

As previously mentioned on this blog, ZTE is banned from purchasing from US hardware and software suppliers for 7 years due to violating U.S. export controls. This ban would severely limit ZTE’s ability to make phones as US companies provide 25-30% of the components in ZTE equipment, with ZTE paying over $2.3 billion to US suppliers.

As the penalty can change anytime – check back for more updates.