Tag Archives: Huawei

Breaking news – Trump allows US companies to sell to Huawei.

June 29, 2019 By in Huawei, Uncategorized Tags: , , , , Leave a comment
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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

In comments at the G20 Summit, Trump was quoted as saying:

“One of the things I will allow, however, is, a lot of people are surprised we send and we sell to Huawei a tremendous amount of product that goes into the various things that they make. And I said that that’s okay, that we will keep selling that product. These are American companies… that make product and that’s very complex, by the way, and highly scientific. And in some cases we’re the ones that do it, we’re the only ones that do it. What we’ve done in Silicon Valley is incredible, actually and nobody has been able to compete with it, and I’ve agreed and pretty easily, I’ve agreed to allow them to continue to sell that product. So American companies will continue and they were having a problem, the companies were not exactly happy that they couldn’t sell because they had nothing to do with whatever it was potentially happening with respect to Huawei, so I did do that.”

Based off Trump’s comments, hardware components from US companies such as Intel and Micron can continue to sell to Huawei.

Will post more official verification as soon as it becomes available.

If you have questions about the Huawei BIS entity ban, contact experienced export compliance attorney David Hsu by phone/text at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

“Teardown” of Huawei P30 Pro highlights US parts content of Huawei phones.

June 29, 2019 By in entity list, Huawei, Uncategorized Tags: , Leave a comment
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According to the folks at Android Authority, citing a Nikkei conducted teardown of Huawei’s new flagship device, revealed that only 0.9 percent of the components in a P30 Pro come from the US – in other words, only 15 US parts out of a total of 1,631 parts.

Dollar wise, the total US components cost $59.36 out of the $363.83 total component price. The parts from the US include the DRAM from Micron, parts from Skyworks, Qorvo and the Gorilla Glass from Corning.

Nokia looking to benefit from Huawei ban.

June 27, 2019 By in Huawei, Nokia, Uncategorized Tags: , , , Leave a comment
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According to Tommi Uitto, President of mobile networks at Nokia, Nokia has signed 43 commercial 5G deals while Nokia has signed 50.

At the end of March, Nokia had 30 contracts while Huawei had 40, indicating Nokia has been winning more 5G customers than Huawei. Specifically, Nokia has been expanding its 5G business in Australia, New Zealand and the US – where Huawei’s 5G involvement is limited after their inclusion on the BIS entity list.

While the Huawei ban may help in some markets, Uitto indicates the ban may increase Huawei’s aggressiveness in other markets in countries where they can compete.

Facebook no longer allow pre-installation on Huawei smartphones.

June 27, 2019 By in entity list, Huawei, Uncategorized Tags: , , , Leave a comment
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As reported by CNN Hong Kong, Facebook has stopped allowing Huawei to preinstall the Facebook application on Huawei smartphones in response to Huawei’s inclusion on the BIS entity list.

Huawei is the second largest smartphone brand in the world (behind Samsung) and the target of a US export ban. The US is concerned Huawei equipment can be used for Chinese spying, a claim vehemently denied by Huawei. Any US firms that supply to Huawei will need a license in order to export software, goods or service to Huawei.

If you have any questions about how the Huawei export ban may impact your business, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

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.

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.

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.

Huawei and affiliates added to the BIS “Entity List”.

May 27, 2019 By in entity list, Huawei, Uncategorized Tags: , , , Leave a comment
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On May 21, 2019, the Federal Register published the Bureau of Industry and Security (BIS) “Addition of Entities to the Entity List”. While not published until the 21st, the entity list had an effective date of 5/16/2019. The full document can be found here.

What does this mean?
This rule by BIS amends the Export Administration Regulations (EAR) by adding Huawei Technologies Co., LTD and its affiliates to the “Entity List”.

What is the “Entity List”?
This is a list of certain foreign persons (including companies and individuals) that are subject to license requirements for export, re-export or transfer of specific items.

Why was Huawei added to the list?
The U.S. Government has determined that there is reasonable cause to believe that Huawei has been involved in activities contrary to the national security or foreign policy interests of the United States. BIS is also adding non-U.S. affiliates of Huawei to the Entity List because those affiliates pose a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States.

What other Huawei affiliates, subsidiaries are on the entity list?
The list also covers Huawei’s affiliates located in twenty-six destinations: Belgium, Bolivia, Brazil, Burma, Canada, Chile, China, Egypt, Germany, Hong Kong, Jamaica, Japan, Jordan, Lebanon, Madagascar, Netherlands, Oman, Pakistan, Paraguay, Qatar, Singapore, Sri Lanka, Switzerland, Taiwan, United Kingdom, and Vietnam.

Questions?
If you have questions how the inclusion of Huawei to the entity list will impact your business, call/text David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.