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.

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.

Trump saves Huawei.

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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

Well, not exactly Huawei, but at least Huawei’s smartphone division. After backtracking on sanctions, Huawei’s shipments for 2019 are estimated to be 260 million units and more. This new forecast even beats the pre entity list placement forecast of 250 million units.

According to the Bloomberg article cited several reasons for increased smartphone sales: (1) inclusion of Google play store apps for future smart phones, and (2) increased Chinese domestic sales of Huawei devices that may result from consumers supporting a domestic company.

Ultimately, Trump’s reversal of the Huawei ban (for devices not a threat to national security) has ultimately saved Huawei and their smartphone sales. Over the past two months, there have been multiple reports of canceled phones and laptops (new Matebook); we can expect to see those new devices in the near future as a direct impact of President Trump’s reversal at the G20 summit.

If you export any goods that may contain Huawei parts or components, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Huawei laying off hundreds of US workers.

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As reported by the Wall Street Journal, Chinese telecommunications firm Huawei will lay off hundreds of workers at their research subsidiary – Futurewei Technologies. Futurewei is the US-based research and development arm for Huawei and employs roughly 850 people nationwide.

According to public records, Futurewei was founded in 2001 in Plano, Texas. I just checked online, and the website www. futurewei.com already appears to be offline.

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.

US announces clarification of Huawei ban.

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Wilbur Ross, Official Portrait

At the G-20 summit, President Trump announced that US companies could sell to Huawei. Today, the Trump administration filled in the rest of the details by announcing a relaxation of the restrictions against selling to Huawei – limited the ban only to products that are related to national security.

Yesterday, Commerce Secretary Wilbur Ross announced that that licenses would be issued to companies to sell their products to Huawei under certain conditions.

On Tuesday Wilbur Ross, the commerce secretary, said that Washington would issue licences to companies to sell their products to the Chinese telecoms equipment maker under certain conditions. The main condition being “no threat to US national security”. As Huawei is still on the BIS entity list, companies that sell products not harmful to US national security will still need to apply for a license.

If you have questions about the Huawei ban or would like to apply for an export license, contact export compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

CNBC reports Huawei personnel links to China’s military intelligence.

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CNBC published an article online citing a study conducted by Christopher Balding, an associate professor at Fulbright University Vietnam, and London-based conservative think tank Henry Jackson Society. The study looked at resumes and curriculum vitae of Huawei employees and they report that “key mid-level technical personnel employed by Huawei have strong backgrounds in work closely associated with intelligence gathering and military activities.” The paper said that some employees had “to specific instances of hacking or industrial espionage conducted against Western firms”.

The resumes and personal information was leaked when a website and database run from a recruitment firm was compromised and published online.

In response, Huawei has claimed they are unable to verify the Huawei employee information and cannot confirm whether the “veracity of all of the information published online”. In response, Huawei also states that “Huawei maintains strict policies for hiring candidates with military or government backgrounds. During the hiring process, these candidates are required to provide documentation proving they have ended their relationships with the military or the government”.

A Huawei spokesperson also added: “We welcome professional and fact-based reporting on investigations into Huawei’s transparency. We hope that any further research papers will contain less conjecture when drawing their conclusions, and avoid so many speculative statements about what Professor Balding ‘believes,’ ‘infers,’ and ‘cannot rule out,’”.

If you have questions about how the Huawei inclusion on the BIS entity list means for your business, contact export license attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.