Main article: Huawei
WSJ learned about plans of the USA for merger of Ericsson for a victory over Huawei
The administration of U.S. President of Donald Trump considers different schemes of opposition of the Chinese Huawei in the world market of telecommunication equipment for 5G networks, The Wall Street Journal (WSJ) writes .
|"These ideas show how far the USA in the fight against China for the one who will supply the world with advanced technologies is ready to come" — the newspaper writes.|
The Chinese company possesses 28% of the world market of telecommunication equipment, and that sells it "from Asia to Germany". The American suppliers are still too small to compete with Huawei, and it means that large operators of wireless communication, not persons interested to buy the Chinese equipment, still rely on three international suppliers — Ericsson, Nokia and Samsung Electronics Co., notes the edition.
According to sources of WSJ, the White House is ready to stimulate leaders of the technology sector of the USA, such as Cisco Systems, to merger of Ericsson or Nokia. The American authorities are going to provide tax benefits and to provide financing, support to the investors ready to invest in one of the European equipment manufacturers. However, according to sources, the American business did not show interest in purchase of the low-marginal companies.
The option of support of open technology for networks which will facilitate to the American startups development of the equipment for a 5G is in parallel discussed.
|As the edition, the group of experts, including the ex-director of NASA Daniel Golduin and the former top manager of Nokia Hossein Muin found out, prepared the report for the White House. They suggested to create with assistance of the federal government technology consortium which would allow to catch up with Huawei in development of technologies for networks of fifth generation. This idea is supported by group of private investors led by Cerberus Capital.|
|"For the first time in modern history the United States did not become the leader in a new wave of critical technologies" — experts in the field of telecommunications warn in the report, widespread in the White House.|
The British intelligence agencies are advised telecom operators to stock up with the equipment of Huawei because of new sanctions of the USA
On June 22, 2020 it became known of what the British intelligence agency began to advise telecom operators to stock up with the equipment of Huawei because of new sanctions which allegedly prepare the USA.
The national center of cyber security (National Cyber Security Centre, NCSC) which is included into the British intelligence agency of electronic investigation - Government Communications Headquarters (Government Communications Headquarters, GCHQ), was sent to several telecommunication companies, including BT Group and Vodafone, the letter (Reuters has a copy), which contains the recommendation to support adequate supply rates of spare parts from all producers.
In the message it is also specified the increased danger to the equipment of Huawei and uncertainty of rather future capability to provide updating of these products in the conditions of pressure from the USA.
|Preserving of relevance of products and component parts is a necessary condition of maintenance of security of networks. Escalation of actions of the USA against Huawei can affect its capability to release updates for the products containing the American technologies — it is told in the letter.|
The representative of NCSC in a conversation with Reuters explained that the National center of cyber security made to operators several recommendations about precautionary measures, having continued to study at the same time influence of these sanctions on the British networks.
Earlier in 2020 the authorities of Britain gave to Huawei the status of "high-risk producer", having limited for the company a 5G market share at the level of 35% and having excluded it from a part of network with the large volume of data.
The British government prepares the set of guidelines for June 22, 2020 about that, to properly unroll the equipment of Huawei taking into account the maximum security of the British networks. The final decision on this matter should be in the next weeks.
The American companies will be able to cooperate with Huawei for development of a 5G
The U.S. Department of Commerce accepted the solution to lift the bans on cooperation of the American companies with Huawei in creation of communication system 5G imposed earlier. As noted in department, participation of the USA in development of standards for networks of the next generation "influences the future of a 5G, autonomous vehicles, artificial intelligence and other advanced technologies".
According to representatives of department, these changes should not be considered as sign of easing of determination of the USA concerning Huawei. The list of the Huawei enterprises handicaps the USA in the field of standards where the companies develop the specifications allowing the equipment of the different companies to work together.
Huawei stocked up with the American chips for 2 years ahead
On June 8, 2020 it became known that Huawei stocked up with important American chips for 2 years ahead that to minimize a negative impact from sanctions of Washington. The most part of such purchases at the Chinese company fell on server Intel processors and also programmable chips of production of Xilinx company.
According to Nikkei, Huawei filled warehouses with "the most important components" for the base stations and the equipment used in work of cloud services. Stocks began to be created at the end of 2018.
|Programmable Xilinx chips are too difficult for replacement at present. Even own chipmaker Huawei – the HiSilicon company – cannot create chips which can compete with offers of Xilinx completely, – the informed interlocutor told Nikkei.|
According to own data, Huawei in 2019 spent for purchase of semiconductor components and materials of 167.4 billion yuans (about $23.5 billion). It is 73% more, than was spent the previous year.
Sources also told Nikkei that since 2019 the company stocks up also with memory chips. For concerns that USA can extend action of sanctions on DRAM- chips and NAND flash, the Chinese vendor buys these products from the companies Samsung SK Hynix, Micron and Kioxia. According to the Korean MEDIA, Huawei addressed the management of Samsung and SK Hynix and asked to provide guarantees of uninterrupted supplies of chips.
In the publication it is noted that Huawei could not purchase the most part of the stocks directly therefore it purchased components at retailers and other third parties that led to increase in prices and lack of support of the contract employee: Huawei will not be able effectively to solve problems or to receive compensation for the defective equipment and also to update the software which, turns out is tied to those processors that were purchased.
TSMC ceased to take orders of Huawei because of the American sanctions
On May 19, 2020 it became known that TSMC ceased to take from Huawei new orders for production of chips after new restrictions which U.S. authorities imposed on the Chinese company (prohibited to sell to producers Huawei the semiconductors using the American technologies). Read more here.
Trump prohibited all to sell in the world Huawei chips with the American technologies
In the middle of May, 2020 the administration of U.S. President of Donald Trump announced the new restrictions concerning Huawei. It was entrusted to U.S. Department of Commerce to block Huawei of delivery of the semiconductor chips using the American programs and other technologies. It concerns all producers in the world.
According to the White House, despite sanctions, Huawei and its subsidiary company HiSilicon continue to use the American developments in the semiconductor components. As a result Ministry of Trade decided to make amendments to rules of export that "strategically to block acquisition of the chips by Huawei company directly using the software and technologies of the USA".
|We should not assume that technologies of the USA were used in the malicious actions contradicting the interests of national security and foreign policy of the USA, - the minister of trade Wilbur Ross said.|
According to Wall Street Journal, new restriction does not allow foreign producers of semiconductors which use the American software and technologies, to send products to Huawei without preliminary obtaining the license from authorities of the USA.
The Chinese newspaper Global Times reported that in response to new restrictions China is ready to include the American companies in "the list of the unreliable organizations".
China will accept resolute counter-measures for protection of the legitimate rights if the USA continues implementation of the plan prohibiting to prime vendors of chips, including the Taiwan TSMC, to sell chips of Huawei, said in the publication Global Times.
These counter-measures can include the beginning of investigation and imposing of restrictions for the large American companies, such as Apple, Cisco and Qualcomm and also suspension of purchase of the Boeing airplanes.
To the American companies prohibited to buy the equipment of Huawei on state money
In the middle of March, 2020 to the American companies officially prohibited to buy the equipment of Huawei and ZTE on the money selected with the state as products of these Chinese producers were recognized by the authorities unsafe for the country.
On March 12, 2020 the president USA Donald Trump signed the Law on safe and trusted networks (Secure and Trusted Communications Networks Act) which as reported in the White House, "will help to protect our telecommunication infrastructure, having prohibited use of federal funds for equipment procurement at the companies posing a threat of national security".
The law also assumes that the Federal commission on communication (FCC) will create fund in the amount of $1 billion for the purpose of assistance to small telecommunication companies — expenses on utilization and replacement of the prohibited equipment of Huawei and ZTE will be refunded to them.
Donald Trump also signed the decree on introduction in the USA of emergency mode for protection of the American information communication networks against foreign threats. He prohibits to buy and use the equipment which using the American technologies is made by the companies menacing to national security of the country.
In turn, the Huawei company opposes prohibition on use of its equipment and disputes the fact that it poses a threat of national security of the USA. One of the main arguments of the company is that U.S. authorities did not provide any proofs in confirmation of the charges
Huawei submitted a claim against the Federal commission on communication of the USA. The corporation considers that it considers that provisions of the constitution of the USA because of prohibition on participation in the program of federal subsidiyny fund were broken.
|Prohibiting such company as Huawei, only that it is based in China, it does not solve a cyber security problem — the general counsel of Huawei Song Liuping said.|
The court prohibited Huawei to appeal against the decision of the U.S. Government on prohibition of the equipment of the company
On February 18, 2020 Huawei Technologies lost legal case concerning the ban on the equipment of the Chinese company imposed by the U.S. Government in state agencies. Huawei will not be able to appeal against the decision of the authorities.
In March, 2018 Huawei took district court of the city of Pleyno (the State of Texas, the USA) with the complaint in which it was said that Article 889 of the Law on national defense adopted in 2019 which prohibits public institutions to buy products of Huawei is unconstitutional as it breaks the numerous constitutional principles and without proofs isolates the company.
In the resolution stated on 57 pages, the circuit judge Amos Mazzant confirmed legality of the restrictions introduced against Huawei.
He referred to the defense budget of the USA for 2019 financial year in which it is specified that activity of Huawei and other Chinese company — ZTE — can pose a threat of national security of the USA as they can receive and transfer information to the government of the People's Republic of China.
|Signing of the contract with the federal government is privilege, but the right which is not guaranteed by the constitution — at least as far as it is known to court — said Mazzant.|
According to him, the fact that Huawei pejoratively refers to as anticonstitutional interpretation of the facts from the Congress would be to characterize as attentive trial of potential threat to national cyber security of the USA by the Congress more precisely. Trial in the Congress led eventually to adoption of the bill which became the preventive response to such threat, he emphasized.
At the same time the judge noted that Huawei can continue all business with any non-state company and the individual in the USA and other countries.
The USA selected $1 billion for replacement of the telecom equipment of ZTE and Huawei
In the middle of December, 2019 the Congress USA approved the bill according to which will provide to small telecommunication operators $1 billion for replacement of the equipment purchased at the Chinese producers Huawei and ZTE.
The bill obliges the Federal commission on communications to allocate funds for "the program of substitution" which covers telecom providers about less than 2 million subscribers, purchased network equipment of Huawei or ZTE till August, 2018. Authors of the bill recognize premises that the similar equipment creates "unacceptable risk" of national security of the USA as his producers are closely connected with the Chinese government.
Thus, the new bill is designed to protect "national communication networks from foreign influence and date leak to the potential opponent by selection of financial aid of wireless communication to small and rural providers who should make complete replacement of the network equipment of the producers falling under sanctions of the USA existing at them by safer and checked equipment of the producers permitted for these purposes".
The taken measures also assume that the black list of equipment manufacturers can be expanded further. In the bill it is emphasized that special concern is caused by use of the equipment which is capable to trace or redirect the user traffic, to allow the hidden passing of data packets or far off to break work of networks.
The similar bill was already approved by committee of the U.S. Senate on trade in July, 2019. As a result the Federal commission on communications selected $700 million in the form of subsidies for the termination of supplies of equipment of Huawei to large American telecom operators for the purpose of protection of their security.
U.S. authorities permitted Huawei to use software of Microsoft
U.S. authorities prolonged the license of Huawei for work with the American companies for 90 days again. The Chinese company will be able to work till February 16, 2020 with some companies according to the time license when questions do not concern national security of the USA. Nevertheless Huawei since May is in the black list of legal entities: Google, Intel and Panasonic suspended cooperation with the company. However other corporations, including Microsoft, are ready to continue to work with Huawei.
|On November 20 the Ministry of Commerce of the USA satisfied a request of Microsoft for export of the software focused on the mass consumer for Huawei, said in the statement of the company.|
In addition to Microsoft applications for the license were submitted by 300 more companies, however not all were approved. What else companies, in addition to Microsoft, got permission of the U.S. Government to business of Huawei, by November 22, 2019 it is unknown.
|The ministry grants these licenses to permit limited activity which does not represent a significant risk for the interests of national security or foreign policy of the United States, said in the statement of department.|
Entering of Huawei in the black list of legal entities seriously affected revenues of some American companies. However case can come further away. The group of senators asked the U.S. President Donald Trump to suspend licenses for business with Huawei as thanks to them Huawei "continues to pose a serious threat for telecommunication infrastructure of the USA and national security in a broader sense'.
Russia and Huawei rally against the background of gain of Cold War of technologies
|Huawei is the largest Chinese technology company. China is on friendly terms with Russia therefore it is quite logical that now Huawei plays the leading role in this friendship — Vladimir Rubanov, the managing director of the Russian IT company Rosplatforma told .|
Recently Huawei achieved in Russia of considerable progress and was beaten out in leaders in local market in several areas at once — from deployment of mobile networks 5G and before sales of smartphones. Besides, Huawei began to expand research and design activity in Russia. In turn, Russia receives from the Chinese technical giant of investment and the help in training of specialists.
|There are not so many countries with such number of programmers and engineers, - he noted. - Russia is not the only country which can offer good employees of this area, but there is one of options.|
Thanks to huge financial resources of Huawei has all opportunities for attraction of the Russian talents. Komissarov noticed that Huawei employed several of his acquaintances from the IT industry, having doubled former salary.
According to Rubanov, the relations with Huawei will bring benefit to Russia - the Chinese company provides the Russian economy with the much-needed foreign investments and also helps local technical specialists to purchase new skills.
The leading analyst of Mobile Researh Group Eldar Murtazin says that success of Huawei in the Russian market of smartphones is in many respects connected with big investments into the Honor brand. Honor gained trust of the Russian consumers, having offered rather high-quality phones at low prices with which competitors of Huawei either could not, or did not want to fight. Murtazin considers that charges of the Chinese corporation of espionage do not make any sense.
|In Russia Huawei is considered as the law-abiding company, nobody produced any evidence — he added.|
Providers of the USA will receive $1 billion for failure from "iron" of Huawei and ZTE
The U.S. House of Representatives published the bill according to which it is going to select $1 billion to small and rural providers of services of wireless communication. Funds should be allocated for replacement of network equipment of Huawei and ZTE. It, in opinion, the American legislators, poses threat for national security of the USA. Reuters reported about it .
As notes the edition, the similar bill was approved by committee of the U.S. Senate concerning trade in July, 2019. It provided selection about $700 million to large telecom operators in the form of subsidies in exchange for failure from the equipment of Huawei. It was supposed that such measures will help "secure supply chains of telecommunication equipment".
Failure from substitution in smartphones of Google services applications of "Yandex"
Huawei is not going to substitute in the smartphones Google services with applications of "Yandex". The vice president of division of mobile services Huawei in Europe Jaime Gonzalo told about it in an interview of RIA Novosti at the end of September, 2019. Read more here.
Huawei began to make a 5G equipment without the American components
Huawei Technologies already makes base stations for 5G networks without use of the components developed by the American companies. It was said on September 26, 2019 by the founder and the actual head of the Chinese producer of telecommunication equipment and smartphones Ren Zhengfei.
According to him, since October, 2019 Huawei will begin to produce every month about 5 thousand base stations for a 5G networks without the American developments. In 2019 production of 600 thousand devices, and in the 2020th — up to 1.5 million is planned.
As the president on corporate strategy of Huawei Will Zhang explained Reuters, the equipment without the American technologies "is not worse", and the company "was pleasantly surprised" with it. The top manager refused to report details.
Zhen Zhengfei says that Huawei would still like to use the American components if it is possible because at the company "emotional relations" with old American suppliers are established.
According to him, Huawei can sell to the western competitors of the license for the technologies in the field of a 5G communication to dispel all doubts concerning security of products of the Chinese company.
Huawei is ready to provide to buyers continuous access to the available patents, licenses, source codes, technical drawings and production know-how in area 5G for a one-time payment, the head of the company reported.
|Huawei is open to share the technologies and technical solutions in the field of a 5G with the American companies that they could create an own 5G industry — Ren Zhengfei said.|
Huawei began to sell notebooks on Linux because of sanctions of the USA
In the middle of September, 2019 Huawei began sales of portable computers running Linux. The Chinese company passed to this operating system because of the American sanctions which limited to it use of Windows and other technologies from the USA. Read more here.
As the USA presses Huawei
According to the statement of Huawei, Washington uses cyber attacks to an intra-company network, threats and intimidation of the former and present employees of Huawei which overflow in the official plane and come to the end with arrests. Sometimes FBI agents are for this purpose used.
According to the Politico newspaper with reference to internal documents of Huawei, the U.S. Government waged an active campaign for recruitment of employees that those shared confidential information with the authorities.
Pressure was put upon the employees of Huawei addressing for the American visa. Besides, Americans studied contents of phones and notebooks of staff of Huawei in search of the compromising information on the company when they underwent passport control on arrival in the USA. The American agents also tried to issue themselves for former employees of Huawei to gain the confidence.
|In the last several months the U.S. Government directed the diplomatic and political influence on lobbying of prohibition of the equipment of Huawei in other countries. Moreover, the authorities use each tool at the order, including legal and administrative powers and also a set of other unfair means to break normal business activity of Huawei and its partners, says the company.|
Huawei claims that the USA charged to law enforcement agencies "intimidate, threaten, force and incite both present, and former employees of Huawei, to oppose the company and to work for them".
Besides, Huawei accused the USA of the organization of cyber attacks to the company for the purpose of penetration into internal systems.
The USA is strengthened by pressure upon Huawei: R&D-центров the companies blacklisted 20%
At the end of August, 2019 it became known of new American sanctions in the relation of Huawei. More than 20% of research and development centers (R&D) and the innovation centers of the company were included in the black list, and it means that the companies from the USA are forbidden to cooperate with them.
According to the Nikkei edition, in total 46 organizations connected with Huawei were included in the black list. At least 11 of them are the key research centers of the company located including, outside the People's Republic of China. Among them — a research institute of Huawei in Milan, the Center of complex photonics in Great Britain, the research center to Chengdu developing technologies of data storage, and institute in Beijing which Huawei calls the world's largest center of testing of routers.
By the end of August, 2019 research and development busy nearly 90 thousand employees of Huawei or nearly 45% of all state. In the 2018th the company spent for Research and Development 101.5 billion yuans ($14.37 billion) or more than 14% of the annual revenues. In 10 years Huawei invested in R&D over 480 billion yuans (about $67 billion).
Huawei: sanctions of the USA will deprive of us $10 billion revenue in the market of smartphones
As the chief executive of Huawei Eric Xu at the press conference devoted to the announcement of new chips reported, revenue of consumer division which basis are mobile phones can decrease more than by $10 billion because of the restrictions imposed by U.S. authorities.
By words the top manager, damage from sanctions, most likely, will be less, than it was expected initially.
By August 23, 2019 Huawei remains in the black list of Ministry of Trade of the USA that complicates cooperation with the American partners and threatens the termination of sales of the component parts and technologies developed in the USA, the Chinese company. The government was going to cut off completely Huawei from purchases of the American products by August, 2019, but granted a delay for 90 days.
Eric Xu called this indulgence "senseless" for Huawei as, according to him, the staff of the company "is completely ready" to live and work with prohibition.
Huawei actively develops own technologies quicker to reduce the dependence on foreign products. On August 23, 2019 the company provided the Ascend 910 AI processor which is going to use only in the devices — without sale to third-party clients.
Ascend 910 is constructed on architecture of ARM — the company which earlier in 2019 refused cooperation with Huawei. However the Chinese producer owns the perpetual license on ARMv8, and it means that the rupture of business contacts with ARM will not affect Ascend 910, Eric Xu assured.
Huawei reported that because of the American sanctions the company cannot interact with the American chipmakers any more, including Cadence Design Systems and Synopsys, but the company has alternative suppliers.
Head of Huawei: the company is on the verge of life and death
On August 20, 2019 the founder and the actual head of Huawei Ren Zhengfei sent to employees the e-mail in which reported that the company is "between life and death" and starts "the fighting mode" to cope with crisis.
Ren Zhengfei wrote the motivating message next day after the U.S. Administration prolonged the license of Huawei allowing it to buy the equipment from the American enterprises for 90 days.
The head of the company advised the employees underloaded at the main work to rally in "groups of a special purpose" on development of new projects. That who will not be able to bring to the company more benefit each several months can reduce salary and even dismiss.
|If you cannot perform this work, then make room for a tank. If you want to leave in the field of fight, you can tie a rope around "tank" to pull it. Everyone needs such determination! — Ren Zhengfei said.|
He called personnel for "worthy practical fulfillments". To the management the task "is set in the fastest way to advance on service of the caused a stir workers and to inhale new life" in Huawei. The company endures the most difficult stage which it should overcome "by all means", the founder noted it.
It expressed confidence that its Huawei will prosper, and the American export restrictions will not cause it a considerable loss. The company can do without cooperation with the American partners, the founder of the Chinese corporation completed.
He also considers that the American sanctions cause damage only to local developers of chips and components to the equipment of Huawei. At the same time Ren Zhengfei said that the company would like to buy further technologies of the companies from the USA as only this way it is possible "to make the contribution to shared prosperity of society".
The partner refused to deliver to Huawei already made electronics for $100 million because of sanctions and paid
On July 25, 2019 it became known that the contract producer electronic engineers Flex held more than a month in the warehouses already assembled devices Huawei after the declaration of sanctions of Washington against the Chinese company. In more detail here.
Reduction of 70% of the staff in American "subsidiary" because of sanctions
On July 22, 2019 it was announced reduction of 70% of number of staff in the American research company Futurewei Technologies which is included into Huawei. Liquidation of jobs turned out to be consequence of sanctions which U.S. authorities inflicted on the Chinese producer of telecommunication equipment and mobile devices. Read more here.
Trump permitted Huawei to buy the American technologies, but granted incomplete amnesty
At the end of June, 2019 the U.S. President Donald Trump during the press conference according to the results of a meeting with the leader of the People's Republic of China Xi Jinping on a G20 summit said that the American companies will be able to sell to Huawei the technologies further. However, about complete recovery of business of the Chinese smartphone manufacturer and telecommunication equipment the speech does not go.
Donald Trump reported that business contacts of Huawei and the American business will be possible only if they do not threaten national security of the USA.
As the economic adviser of the White House Larry Kudlou on air of Fox News TV channel specified, the decision of administration of Trump will extend only to the goods made in many other countries.
According to Kudlou, the Ministry of Commerce of the USA is going to grant additional time licenses for widespread goods.
|For example, chipmakers in the USA sell products which are available also from other countries, and we do not think that there is a threat of national security — he emphasized.|
Larry Kudlou added that Huawei will remain in the list of the organizations representing concern to whom serious export control extends.
Commenting on the proposal of senator from the State of Florida Marco Rubio to achieve resuming of all sanctions against Huawei, Kudlou told that he appreciates concern of the senate concerning national security and once again reminded that the time indulgences entered by Trump are not "general amnesty".
According to Donald Trump, the profit of the American companies on sale of products of Huawei annually was tens of billions of dollars.
Trump and Xi Jinping agreed to resume trade negotiations between the countries. The USA undertook not to introduce new duties on goods from China. Specific questions will be settled during the meeting of trade and economic delegations of two countries. 
The American technical companies found a method to bypass prohibition on deliveries of Huawei
Some American producers of processors continue to cooperate with the Chinese telecommunication company Huawei, despite the ban imposed by administration of U.S. President of Donald Trump. The building of The New York Times with reference to the informed sources reported about it.
According to interlocutors of the newspaper, among such companies there are in particular Intel and Micron Technology which for the last three weeks continued deliveries of the products made outside the USA. The companies use that products made abroad are not always considered "manufactured in the USA", explained one of sources. The prohibition bypass will help Huawei to continue by the American companies assembly and sale of the equipment, such as smartphones and servers, NYT notes.
It is authorized to American companies to sell component parts for the devices of Huawei which are already present at the market to the middle of August of this year, however prohibition on deliveries of components for new products of the Chinese company works already now. Interlocutors of the newspaper did not specify what share of deliverable Huawei of products is made by component parts for future developments, but, by some estimates, the volume of transactions of the American producers with the Chinese company is calculated by millions of dollars.
As Kevin Wolf explained the former employee of Ministry of Commerce of the USA, prohibition can be bypassed if products were made outside the USA, and its sale does not pose threat for national security of the country.
Promise to return money if smartphones do not support Gmail and Facebook
On June 19, 2019 it became known that Huawei Technologies promises to return to users all money spent for purchase of mobile devices of the company if those are not able to support popular applications of Google and Facebook.
Such program of full compensation of purchase of smartphones and Huawei tablets is announced on Philippines. The Chinese producer implements this initiative jointly more than with 30 local partners among retailers and distributors.
According to the Philippine Revu portal, users will be able within two years after purchase of gadgets of Huawei to calculate acquisition values on a full recovery if such services as Gmail, YouTube, Facebook, Instagram and WhatsApp, do not work on these devices.
Huawei confirmed to the South China Morning Post edition existence of such program, but refrained from further comments. In particular, it is unknown whether this initiative will be extended to other markets.
According to sources of news agency Bloomberg, Huawei prepares for reduction of deliveries of smartphones outside China for 40-60% in 2019 concerning the 2018th. The founder and the actual head of Huawei Ren Zhengfei confirmed on June 17, 2019 that sales of phones of the company were abroad reduced by 40%. At the same time it did not specify about what comparison of terms it there is a speech.
Interlocutors of Bloomberg say that for recession compensation abroad Huawei will focus on the Chinese market of smartphones and is going to occupy it to 50%.
Huawei considers several options of development of the telephone business abroad. The company intends to begin on June 21, 2019 sales of the new device Honor 20 in the European market. The management is going to monitor the product demand and in case of a failure will interrupt deliveries.
Huawei counted losses from the American sanctions — $30 billion
On June 17, 2019 Huawei for the first time estimated losses from the American sanctions. The founder and the actual head of Huawei Ren Zhengfei at a meeting with journalists in the company headquarters Shenzhen reported that the Chinese mobile device manufacturer and telecommunication equipment will not get $30 billion revenue in two years.
|We did not expect that U.S. authorities so resolutely attack Huawei. We did not expect that the States will strike so large-scale blow to our supply chain - not only will block deliveries of components, but also access to the international organizations... We cannot achieve deliveries of components, we cannot participate in many international organizations, we cannot closely cooperate with many universities, we cannot use anything with the American component parts and we cannot even set connections with networks which use such components — Ren Zhengfeya quotes Reuters agency.|
2018 Huawei completed with revenue in the amount of 721.2 billion yuans (about $104.16 billion). The company planned that in 2019 revenue will make $125 billion. However after the conflict with the American authorities of Huawei reviewed the forecast — in 2019 and 2020 of sale of vendor will fall to $100 billion, the head reported.
He recognized that the solution of U.S. authorities to blacklist the company will lead to decrease in production. "nobody will come out in the launched war between the company and the American government the winner", Ren Zhengfei is sure.
On a question of when Huawei is able to recover business in the conditions of sanctions, the founder called 2021.
Saying about as far as the company was ready to such succession of events, he drew an analogy to airplane.
|We protected only the engine and the fuel tanks and could not protect other parts — he told.|
Ren Zhengfei emphasized that Huawei intends to activate release of own chips and also to look for alternative opportunities for preserving of the competitive advantages both in the field of smartphones, and in segment 5G.
The USA for a long time postponed prohibition on Huawei. The technology dependence is too high
Administrative and budget management of the White House (Office of Management and Budget, OMB) determined failure terms from use of technologies of Huawei company in the territory of the USA. Department filed the corresponding petition to the U. S. Congress. Prohibition, we will remind, concerns the American companies cooperating with the government of the country or obtaining from it federal loans and grants.
According to Reuters agency, OMB delayed the introduction of sanctions in force for two years – prohibition will begin to work since 2021. Four-year term was initially planned, but on a result it was cut by half.
New sanctions have a direct bearing on the law of the USA on allocations for national defense. In it it is told that federal money cannot be used for purchase of devices of Huawei for reasons of national security – U.S. authorities are convinced that they are used for the purpose of espionage for benefit of the government and intelligence agencies of China. As of June 14, 2019 proofs of it were not submitted.
The two-year delay, according to OMB, is necessary for the American companies for search of new partners with whom they will be able to cooperate and who will take Huawei place. In other words, in a year of the introduction of the mentioned law in force, these companies were not ready to a total failure from partnership with Huawei.
The solution of administrative and budget management of the White House can mean for Huawei an opportunity within two years to solve all disputes with the American side which launched trade war with China and made the company one of the main levers of pressure. However "thaw" concerns not all spheres of its activity, and exclusively telecommunication equipment which the U.S. President Donald Trump in 2018 also required to refuse Union States.
S&P: sanctions against Huawei will do much harm the USA and will help China
In the middle of June, 2019 the international rating agency Standard & Poor's (S&P) warned that sanctions of the USA against Huawei more likely will do much harm to the American suppliers, than the most telecommunication company.
In the report S&P it is said that prohibition can push Beijing to increase in investments into the Chinese technologies and decrease in dependence on foreign suppliers. In turn, this solution can strengthen the competition in the technology sector and potentially lower long-term perspectives of growth of the American technology companies. S&P notes that revenue share from components of Huawei at such suppliers as Micron, Qorvo and Lumentum, makes about 15%, and at Qualcomm — from 5% to 10%.
As for a role of Huawei in development of a 5G networks, analytics S&P consider that even if initially Huawei was in the lead, other Asian and European suppliers make up for lost time so it is still unknown in what degree of Huawei implements the present advantage. If reports are right, operators of those countries that imposed sanctions on products of Huawei, can face higher equipment expenses or delays at implementation of a 5G. But, considering lack of applications with added value, ready to use 5G, S&P consider that the predicted delays and increase in prices will be insignificant for ratings.
Even in the markets where Huawei takes the worthy place, such as Europe and Africa, the imposed sanctions will have the minimum value, analysts consider. Because of slower implementation of consumer technologies and weaker perspectives of the fixed mobile communication large-scale deployment of a 5G in Europe will lag behind the Pacific Rim and the USA, and i.e. deployment of new network will be performed by reserved rates, monetized scenarios of use will not appear yet. Such approach minimizes the costs and delays connected with sanctions on the equipment of Huawei.
Huawei stopped development of new notebooks because of sanctions of the USA
On June 10, 2019 it became known that Huawei stopped development of new notebooks and also asked the partners to suspend deliveries of devices. Such solution is connected with sanctions which the American authorities inflicted on the Chinese company.
About time or, perhaps, final leaving of Huawei from the market of portable computers wrote the DigiTimes edition with reference to sources in a supply chain. The company did not specify time frames of resuming of development and production of the PC as it has no alternative to processors Intel and to the operating system Windows. As Huawei was included in the black list of the Ministry of Trade USA, for deliveries of products the Chinese vendor to the American companies needs to get special permissions. By June 10, 2019 also Microsoft limited to Intel cooperation with Huawei and abstain from informative comments about future deliveries.
Huawei ceased to release both the laptops MateBook, and models of the Honor subbrand (they are on sale under the name of MagicBook). The company stocked up with mobile processors after in 2018 U.S. authorities limited business of other Chinese producer — ZTE. In a case with notebooks it was impossible to buy chips for the future as in the market without that deficit of chips of Intel was observed.
To the American sanctions computer business of Huawei grew promptly. At the end of 2019 the company expected increase in supplies of equipment by 277.3%, but to achieve such result it will not turn out owing to the conflict with the authorities.
Notebooks of Huawei well were on sale, especially in China. For example, after an exit of the MateBook X Pro model in Celestial Empire it was bought up in 10 minutes in official online store Huawei, and the producer earned 10 million yuans (nearly $1.5 million).
Intel and Qualcomm prohibited any communication with the staff of Huawei
On June 10, 2019 it became known that several large technology companies prohibited the employees any communication with workers of Huawei Technologies because of the sanctions inflicted by the American government on the Chinese producer of telecommunication equipment and mobile devices.
According to Reuters news agency with reference to the people familiar with a situation, all informal contacts with the people working in Huawei were limited in Intel and Qualcomm and also in InterDigital Wireless research company and South Korean mobile operator LG Uplus.
In the publication it is specified that communication of staff of the technology companies is considered very customary practice during the international meetings and meetings when engineers are engaged in discussion of standards for communication technologies. Partners of Huawei, being afraid of possible discontent from the American government and the corresponding problems though such Washington did not introduce any restrictions for contacts.
The representative of LG Uplus told journalists that the company "voluntarily abstains from interaction with employees of Huawei, except for meetings on issues of installation of network equipment or maintenance".
According to industry experts, new restrictions can slow down construction of a 5G networks. At a conference on standards 5G which at the beginning of June, 2019 took place in the city of Newport Beach (California, the USA) participants a conversation with Reuters noted that old cooperation between engineers can suffer because of "technology war" between the USA and China.
The representative of the unnamed European company which introduced rules against interaction with Huawei called the people involved in development of a 5G, "shaken".
|It can push all to the corners. We need to work together to pass to a 5G. This market should be global — emphasized the interlocutor of the agency.|
Facebook prohibited Huawei to install the applications in smartphones from the plant
On June 7, 2019 it became known that applications Facebook will cease to be installed previously on smartphones Huawei because of sanctions which the American authorities inflicted on the Chinese company.
According to Reuters news agency with reference to representatives of Facebook, Facebook application of Messenger, WhatsApp and Instagram will not be established on devices of Huawei from the plant. Owners of already released gadgets will be able to use further programs and to receive updates for them.
In the publication it is noted that smartphone manufacturers often sign with the large companies agreements on preset of applications in tubes. In addition to Facebook, Huawei has such arrangements with social network Twitter and service of lease of housing Booking.com. Whether are going these services to boycott Huawei on an equal basis with Facebook, it is not reported.
Facebook filled up the list of partners of Huawei who refused to cooperate with the Chinese company Huawei after its getting into the black list (Entity List) of the U.S. Department of Commerce. The companies from this list cannot buy from the American partners of technology without special permission.
On June 6, 2019 the Nikkei edition with reference to informed sources reported that Huawei on a third cut off purchase orders of the sanctions completing after imposing. Besides, according to interlocutors, the company for 20-30% lowered the predicted supply rates of the devices in the second half of 2019.
Huawei claims that shipments of the equipment remain normal — are not reduced and do not increase.
According to forecasts of analysts of Strategy Analytics, because of the American sanctions of sale of the Huawei smartphones in 2019 will fall almost to a quarter and will make 156.4 million pieces, and in the 2020th decrease by 23%, up to 120.4 million units is expected.
IEEE prohibited Huawei to participate in reviewing of scientific articles
Specialists in the field of computer sciences are concerned by how the Institute of engineers of electrical equipment and electronics (IEEE) executes the sanctions imposed by the U.S. Government against Huawei IEEE. On May 22, 2019 IEEE published the list of what is possible for "the listed persons" (i.e. to the staff of Huawei and its branches) and what cannot be done under the auspices of IEEE. This list forced specialists to doubt independence of IEEE of the American government worldwide.
"The American politicians use power of the whole nation to attack private company"
Huawei submitted in May, 2019 the petition for the simplified legal proceedings on case within which it disputes constitutionality of Section 889 of "The law on powers in the field of national defense" (National Defense Authorization Act) of 2019. She also urged the American government to suspend the campaign authorized by the state against Huawei as these actions do not promote achievement of information security in any way.
|"If to veto activity of Huawei, appealing to information security as an argument, it will not make network more protected. On the contrary, it will create false feeling of security and will distract attention from real problems. The American politicians use power of the whole nation to attack private company. It is abnormal. History almost does not know such examples. The American government did not provide any proofs that Huawei threatens security. They have no incontestable proofs, only conjectures", – Song Liuping, the director of Huawei of legal issues says.|
The Huawei company specifies in the statement for the fact that Section 889 of "The law on powers in the field of national defense" especially selects Huawei and prohibits the American state bodies not only to buy the equipment and company services but also and to sign contracts or to allow grants and loans to the third parties who buy the equipment or company services – even if they are not connected with the American government in any way.
|Sung Lyupin also mentioned entering of the company into the List of the prohibited physical persons and legal entities of Ministry of Commerce of the USA two weeks ago. "It creates a dangerous precedent. Today it is communication services and Huawei. Tomorrow it can be your industry, your company, your buyers, – the director of Huawei of legal issues says. – Huawei is sure of independence and inviolability of the American judicial system. We hope that the court, the last line of defense for justice, will correct errors in the law", - he adds.|
Main article IEEE
FedEx redirects documents of Huawei which it was necessary to deliver to China to the USA
Exception of Wi-fi Alliance Association
The Huawei company was limited significantly in the rights in the Wi-fi Alliance organization which is engaged in development new and promotion of the existing standards of Wi-fi technology. The Huawei company was limited significantly in the rights in the Wi-fi Alliance organization which is engaged in development new and promotion of the existing standards of Wi-fi technology.
The official statement of the organization concerning discharge of Huawei sounds so: "Wi-Fi Alliance works according to the order of Ministry of Commerce of the USA. Membership of Huawei Technologies is not cancelled – the alliance temporarily limited its participation in the actions of the organization covered by the order". In spite of the fact that the place in alliance is said in the statement about preserving for Huawei, on its official site this company at the time of the publication of material did not appear in the participant list and was present only at the list of sponsors.
Along with the time termination of the activity as a part of developers of standards Wi-Fi the Huawei company left, according to Nikkei Asian Review, one more organization – Community of the engineers specializing in area of electronic devices (Joint Electron Device Engineering Council, JEDEC).
Smartphones with the memory cards SD prohibited to release Huawei
On May 23, 2019 it became known of an exception of Huawei of the SD Association organization therefore the company lost the right to release computers and mobile devices with connectors for the memory cards SD or microSD. Read more here.
"The American government underestimates our forces"
About influence of restrictions from the USA: The American government underestimates our forces.
Ren Zhengfei said: "the 90-day license does not bear any sense for Huawei. We are already ready. The most important for us – properly to do the part. We cannot control what does the American government". He noted that entering of Huawei into the List of the organizations of Ministry of Commerce of the USA strongly will not be reflected in a company performance. "We will undoubtedly continue to serve our clients, we have huge opportunities for serial production. We still successfully participate in competitive bidding around the world. Growth rates can will slow down, but is not as strong as assume. In the first quarter our operating income in comparison with the same period of last year grew by 39%, in April there was a decrease to 25%, decrease will be possible by the end of the year again, but case will not reach negative growth. And the industry will not suffer from it".
About plans of substitution of processors
Ren Zhengfei emphasized that Huawei will always need chips of the American production. He noted that the American companies submit applications for the license of Bureau of the industry and security of the USA now. If to provide the license, then Huawei will continue to buy their semiconductors or to sell them the (it is necessary not only to buy, but also to sell to stimulate their progress). According to Ren Zhengfeya Huawei is not going to force out the USA and it is short-sighted to think only of own development. It is necessary to provide the general development. If deliveries as a result are blocked, then nothing terrible will occur as Huawei can make all hi-tech semiconductors independently.
Ren Zhengfei explained that in "peace" time of Huawei always adhered to policy 1+1: bought a half of chips in the USA, made other half independently. According to him in spite of the fact that own chips are cheaper in production, Huawei all the same purchased more expensive American semiconductors as Huawei should not be discharged of the outside world. On the contrary, Huawei supports integration.
"Our friendship with the American companies formed for several decades, and it cannot be broken off as the sheet of paper. If the American companies manage to catch licenses, we will continue to buy their component parts in large volumes. Now a situation unclear, but we can wait. If to them grant licenses, then we will continue normal trade relations with the American companies and we will build jointly information society. In this case we do not want to be isolated from others".
About a 5G: the 5G is not an atomic bomb, but the technology designed to serve for the benefit of society.
According to Ren Zhengfeya, the USA should not snatch on Huawei only because we gained the lead because the 5G is not an atomic bomb, but the technology designed to serve for the benefit of society.
He explained that the capacity of networks of new generation is 20 times higher, than at 4G and 10000 times above, than at 2G, besides, that energy consumption in comparison with 4G is 10 times lower, and the sizes of the equipment are 70% less. The base station of a 5G differs in special compactness and only 20 kg weigh, and its dimensions do not exceed the portfolio size for documents. Therefore any more metal towers are not necessary: the equipment can be placed anywhere: on columns and walls. In the equipment of Huawei materials to which corrosion is not terrible for several decades therefore it can be placed even in sewerages are applied.
Besides, the 5G has very wide channel and allows to transfer different content in very high resolution, such as video in 8K. There is an opinion that cost value will be 10 times lower. Actually, it is possible to achieve decrease by 100 times that the television in high resolution became public service. It will contribute to fast cultural development. In the development the countries should rely on culture, philosophy, education. All this forms a basis of development of the country. Therefore the 5G will change society. Thanks to extremely low delays of network of new generation will also receive wide industrial application.
About developments and specialists: Compete with the western companies for talents.
Ren Zhengfei noted that at Huawei 26 research and development centers in which on a permanent basis more than 700 scientists in the field of mathematics work, more than 800 – in the field of physics and more than 120 – in the field of chemistry are opened worldwide. Huawei also has a center of strategic researches giving support to the leading world universities and scientists in their scientific activity.
Ren Zhengfei emphasized that he in cooperation with the Huawei universities is based on the principles of the law of Bae-Dole. It means that the benefit is received by universities. All intellectual rights to theses and results of researches remain behind the universities and their scientists, but do not pass to Huawei. Before using these intellectual works, Huawei makes the commercial transaction with the owner. The principle of the law of Bae-Dole also consists in it.
Commenting on the competition to Hi-Tech by the companies for talented specialists, Ren Zhengfei noted that pupils of the Novosibirsk university at the International Olympic Games on information science for six years win gold and silver medals, however Google entices them to itself, offering salaries five-six times higher. Since this year, Huawei will enter fight for talents and will offer terms even better that young specialists remained in Russia. "Supporting scientists we do not wait for instant progress. Defeat – too success. The main thing that the command developed. Only this way we will be able constantly to move forward".
About public opinion: You should not kindle nationalist sentiments
On the Chinese Internet about patriotism level often judge by what phone of people uses: Apple or Huawei. However the founder of Huawei noted that all members of his family use the Apple phones.
Ren Zhengfei noted that now society was separated: some say that these patriots should support Huawei, others – that Huawei exploits patriotism of the Chinese citizens. "It is impossible to consider that if someone buys Huawei, then it is a patriot, and the one who does not buy – not the patriot. Huawei is a product. It is pleasant – buy, it is not pleasant – do not buy. It is not necessary to tie him to policy. It is impossible to kindle nationalist sentiments at all".
"My children, for example, like Apple. Apple has a good ecosystem. I gave them MacBooks before trips abroad. It is impossible to limit the consciousness to the fact that to love Huawei surely means to love the Huawei phones", - Ren Zhengfei told.
About an appearance of the enterprise: Improve image of the company, providing high-quality services
Ren Zhengfei said that the image needs to be built not advertizing, but rendering high-quality services to clients. For example, the Korean company LG on the equipment of Huawei unrolled LTE in the range of 300 MHz. During the visit of the Pope Francis of 300 thousand people in the territory of about 1.6 sq.km at the same time transferred through this network of a photo and video. And the network did not fall.
The second example is an ensuring communication during the hajj. Before a prayer of 40-50 Muslims switch off mobile phones, and after its end practically at the same time include back. And the Huawei network quietly maintains such loading. Such world examples it is necessary to build the image, and not just to try to improve it through media and advertizing.
Investments of Huawei into other countries answer requests of the company. "For example, in England we invested in the plant on production of optical chips. We made it generally because England should become the export center of these products. We have such plants in Germany and Japan. We constructed them proceeding from demand, but not to show some status. We do not need the status, we need demand for our products".
About family: They arrested my daughter to break my will
Commenting on arrest of the daughter of Meng Wanzhou in Canada, Ren Zhengfei noted: "It they wanted to break my will, but the daughter told me that it is already morally ready to be delayed there for a long time. It has an optimistic spirit. From it it became much easier for me. I should look at problems of this world from a position above own consciousness, the family and Huawei. Only this way I can be objective".
"All of us offered ourselves and family for the sake of a uniform ideal. Now we have a conflict with the USA, but as a result we should make a joint contribution to development of humanity".
ARM will leave Huawei without processors for smartphones
The ARM company, the developer of the architecture of the same name used in the majority of modern processors for mobile devices is going to break off partnership with Huawei company. According to the Air Force, the management of ARM charged to employees to stop completely all available contracts with the Chinese vendor.
The order concerns, including, and uncompleted agreements both with Huawei, and with all its subsidiary companies. In this situation of Huawei can lose the right to use processors of own development of the Kirin series including the flagman Kirin 980 chip which left in the fall of 2018 in the smartphones and tablet computers. It is connected with the fact that all processors of Huawei are based on architecture of ARM – in the same Kirin 980 ARM Cortex-A76 and Cortex-A55 together with the ARM Mali-G76 video subsystem are used.
Microsoft terminates all communications with Huawei
On May 21, 2019 it became known of the termination of cooperation of Microsoft with Huawei. More and more companies refuse to do business with the Chinese mobile device manufacturer and telecommunication equipment because of sanctions of the USA.
Journalists of The Verge noticed that from Microsoft online store the Huawei MateBook X Pro notebook was gone, and search of other products of Huawei in the directory shows its absence in Microsoft Online Store. Microsoft retail stores sell what remained in warehouses.
The MateBook X Pro model was recognized by many IT editions one of the best thin and easy bonus notebooks in the market. However without the preset Windows the computer will become significantly less attractive, than the competing devices from HP or Dell, observers of The Verge consider.
By May 22, 2019 Microsoft did not make official statements concerning expected break in relations with Huawei. According to Kommersant, Microsoft stops cooperation with Huawei in segments of consumer electronics and solutions for business.
One of sources in a telecom told the edition that on May 20, 2019 Microsoft sent to the representations (including the Russian) letters with the notification on a gap with Huawei. Other interlocutor of the newspaper noted that letters and informal warnings of preparation of termination of work with Huawei were received by several Microsoft partners in Russia.
In letters Microsoft reported to the divisions that all negotiations of representations with Huawei will have to take place with the participation of the headquarters of the American corporation.
Huawei uses in the notebooks the Windows operating system from Microsoft, and for b2b-solutions — software of the American company in servers and solutions for data storage, and that number in Huawei Cloud service.
Partners refuse Huawei after getting of the company into the black list in the USA worldwide
On May 19, 2019 it became known that partners refuse cooperation with Huawei after the USA inflicted sanctions on the Chinese company.
The world's largest contract chipmaker of TSMC said that the company saves deliveries of products for Huawei, but estimates influence of getting of the Chinese company into the black list at the USA. The supplier of displays for devices of Huawei — Innolux — reported that he will not do without negative impact, but it is difficult to foretell whether it will be possible to save the former amount and terms of shipments of screens.
According to Reuters and Financial Times, the company Google suspended provision of services and technical support of the Chinese Huawei. As a result the Chinese company will lose access to to the operating system Android with the built-in Google services, and devices will cease to receive program updates from Google.
|We come to compliance with the decree and we study effects. The Google Play and protection of Play Protect will continue to function for our users on the existing devices of Huawei — the representative of Google spread information about the termination of business contacts of Google with Huawei because of the decision of the American authorities to blacklist the last commented on Reuters.|
Huawei stated that the sanctions imposed against it in the USA will not help Washington to become stronger as restrictions will strike the American consumers, but not it.
Trump signed the decree prohibiting to the companies to use the equipment of Huawei in the USA
On May 15, 2019 the U.S. President Donald Trump signed the decree which imposes in the country state of emergency for protection of national information and communication infrastructure against foreign threats and prohibits the local companies to use the equipment of Huawei.
At the time of a release of the decree the large American companies do not use the structure of Huawei any more, but the innovation can concern small firms.
The order signed by Trump referred to the International law on emergency economic powers which grants to the president the right to regulate trade in response to the emergency state menacing to the United States.
In the document it is told about an opportunity to block transactions between the American companies and their foreign partners, the The Washington Post newspaper reported. In particular, it is about those foreign companies which in Washington consider under control of "opponents of the USA".
The U.S. Department of Commerce will enter Huawei and the related legal entities to the black list. The press service of the ministry noted that the similar decision was made on the basis of information testimonial of the fact that the company "is involved in the activity contradicting national security and the foreign policy interests of the USA".
For cooperation with Huawei the American producers will need the special license of U.S. authorities.
|This step will prevent the companies belonging to foreigners to use the American technologies for undermining national security of the USA, said in the statement of the minister of trade Wilbur Rossi.|
Huawei called "unreasonable restrictions" from Washington "inconsiderate infringement" of its rights, but expressed readiness to keep in touch with the American government for providing security accreditations of products.
The claim on the U.S. Government for anticonstitutional trade restrictions
The Huawei company announced on March 7, 2019 TAdviser submission of the claim in federal court of the USA to dispute constitutionality of Section 889 of "The law on powers in the field of national defense" (National Defense Authorization Act, NDAA) of 2019. Thereby Huawei insists on pronouncement of the declarative resolution that it the restrictions of an antikonstitutsionna directed against it, and wants to achieve their perpetual injunction.
|The U. S. Congress could never provide any proofs confirming legitimacy of restrictions for products of Huawei. We are forced to take legal action as a last resort — Guo Ping, the acting chairman of the board of Huawei said. — This restriction is not just illegal — it does not allow us to compete on equal terms that, eventually, harms the American clients. We look forward to court's decision and we believe that it will be accepted for benefit of Huawei and residents of the USA.|
A claim was submitted to District court of the USA in Plano, the State of Texas. According to the document, Section 889 of "The law on powers in the field of national defense" of 2019 prohibits all American state departments not only to buy the equipment and Huawei services but also both to sign contracts and to grant grants and loans to the third parties purchasing the equipment and Huawei services bypassing executive and judicial processes. According to the statement of Huawei, it breaks the Provision Bill of Attainder Clause (prohibiting to select the particular person or a group of persons for removal of punishment without court) and Regulations on due course of law (Due Process Clause) and also the principles of differentiation of legislative, executive and judicial authority which are the cornerstone of the Constitution of the USA as the Congress creates the law and at the same time tries to pronounce on it a sentence and to perform it.
|Section 889 is based on a set of the false, unproven and unreasonable assumptions. Despite the fact that it is written in this legal act, the government of China does not own, does not control and has no impact on activity of Huawei company. No proofs which would testify against it were provided — Song Liuping, the director of Huawei of legal issues emphasized.|
Huawei considers that restrictions within NDAA prevent the company to provide advanced technologies of a 5G to the American clients that will slow down their implementation. In turn, it will prevent work on performance improvement of 5G networks in the USA. Besides, net surfers will be forced to select from rural and remote regions of the USA between public financing and high-quality budget products. It, in turn, will interfere with process of upgrade of networks therefore digital inequality will amplify. That it is even worse, the restrictions directed against Huawei suppress the competition therefore the American consumers should purchase products of lower quality at higher prices, emphasized in the company.
By estimates of industry sources if it was authorized to Huawei company to enter competitive struggle, it would reduce cost value of wireless infrastructure by 15-40% and would allow the countries of North America to save at least $20 billion in the next four years.
On Guo Ping's assurance, Huawei is ready to answer questions of U.S. authorities. Canceling of restrictions will give to the American government the chance to work freely with Huawei and to solve real problems in the field of security, the top manager of the company concluded.
The official statement of Huawei company in connection with charges of the U.S. Department of Justice
Huawei is disappointed with news about the charges brought against the company. After arrest of Mrs. Meng the company looked for an opportunity to discuss investigation in east district of New York with the U.S. Department of Justice, however, the request was denied without explanation. The arguments which are put forward in the indictment about a trade secret in the Western district of Washington were already a subject of the civil action and were settled by the parties after jury members in Seattle did not detect either damage, or deliberate and malicious actions in the claim for a trade secret.
The company denies that it, either its subsidiary company, or branch made any of the stated violations of the law of the USA stated in each of indictments. Huawei does not possess information on any violations from Mrs. Meng and considers that courts of the USA finally will come to the same conclusion.
Official charges of the USA of industrial espionage and fraud
According to Bloomberg news agency with reference to the acting as the Attorney-General of the USA Mathew Uiteker, the Chinese producer of telecommunication equipment violated terms of agreement with the American operator T-Mobile who developed the robot for testing of the mobile phones. Huawei created the similar equipment, secretly photographing and measuring its development and having even stolen a part of the American robot, Uiteker reported.
T-Mobile in the claim submitted in 2014 stated that the staff of Huawei took control not only of information on its characteristics, but also separate elements, as a result the company could use the stolen parts of the robot for "development, improvement and troubleshooting of own robot". Huawei claimed that it settled this dispute in 2017.
Besides, according to the American Ministry of Justice, Huawei provided unreliable information to U.S. authorities and banks about the relations with the subsidiary companies for the purpose of business in Iran. Huawei announced that it left number of his owners because of sanctions, but remained the shadow beneficiary and continued to do business, declared in Ministry of Justice.
Mathew Uiteker during the press conference told that charges are brought against the company, its affiliated enterprises Huawei Device USA and Skycom and also against Meng Wanzhou — the chief financial officer of Huawei and the daughter of the founder of Huawei. In turn the head of FBI Christopher Ray specified that charges do not concern the leadership of the People's Republic of China.
Expressed to the Ministry of Foreign Affairs of China serious concern in the brought charges and urged the American authorities to stop "groundless oppression" of the Chinese companies, including Huawei and also to cancel the warrant for the arrest of Meng Wanzhou.
The Czech Republic will respond China to the declaration of the equipment of Huawei with threat to national security
In January, 2019 the president of the Czech Republic Milos Zeman criticized the statement of the IT regulator for the equipment of Huawei menacing to national security and warned about response measures of China. Read more here.
Japan refused the equipment of Huawei
On December 10, 2018 the main Japanese ministries and armed forces received instructions not to use personal computers, servers and telecommunication equipment Huawei of production Technologies, ZTE and other Chinese companies.
The government commission on development of measures of cyber security formulated new rules of purchase of computer and telecommunication equipment of foreign production for government institutions and also the Japan Self-Defense Forces. Suppliers the companies which can pose a threat of national security of Japan are eliminated. Requirements become effective in 2019 after carrying out "the training period", notes the Nikkei edition.
According to the Kyodo agency, the Japanese government prohibited Huawei and ZTE to receive public contracts and to participate in state procurements in the territory of the country. It explained the solution with concerns concerning possible leak of confidential information.
|For us it is extremely important not to buy the equipment which bears in itself harmful functions and can be used to theft of information, its destruction and violation of work of information systems — the secretary general of the cabinet of Japan Yoshihide Suga said at a press conference in Tokyo, without having begun to tell at the same time the names of the specific companies about which there is a speech.|
The Japanese state agencies, as a rule, buy telecommunication equipment within the general competitive bidding on the basis of the price, but after entry into force of the new guidelines also security will be considered.
The Embassy of China in Tokyo expressed "serious concern" concerning messages that the government of Japan prohibits state procurements of the equipment of Huawei and ZTE. Earlier some other countries, including the USA and Australia, refused to use these products for reasons of national security.
The USA warned allies against use of the equipment of Huawei
In November, 2018 the American government addressed allies with prize-winning to refuse use of the equipment of Huawei company which Washington suspects of espionage for benefit of the Chinese authorities.
The corresponding warnings were brought to telecommunication operators in Germany, Italy, Japan and some other countries. According to the The Wall Street Journal (WSJ) newspaper, officials of administration of U.S. President of Donald Trump consider the possibility of providing to "the friendly countries" of financial aid for development of communication networks without use of the Chinese equipment.
Most of all USA interests the countries where there are their military bases. Though the Pentagon uses own satellites and means of communication, but in a case with the Internet often work goes through local private providers.
Within the campaign against Huawei and ZTE the American authorities prohibited state agencies to buy the equipment made by these vendors in the country, and on the American military bases ceased to sell the Huawei and ZTE smartphones. Began to boycott products of these companies in 2018 also some countries allies of USA, including Britain and Australia.
According to WSJ, the USA is afraid that the People's Republic of China can be engaged implementation of cyber attacks or electronic in espionage using telecommunication equipment of the companies. Also in Washington consider the fact that Celestial Empire will try to hack networks.
In Huawei and the Chinese government all charges in the address reject and insist that they observe all standards of cyber security by production. The company also claims that its equipment is not inferior on cyber defense to devices from Nokia or Ericsson.
The experts polled by the edition connect actions of Washington with trade war and a technology race which are waged with China.
Australia did not start up Huawei to national a 5G project
In July, 2018 it became known that Australia did not allow Huawei Technologies to the national project of construction of networks of fifth generation (5G). The authorities are afraid of possible communications of the company with the government of Celestial Empire. Read more here.
Intelligence agencies of the USA recommend to Americans not to use the Huawei smartphones
In February, 2018 intelligence agencies of the USA stated that they do not recommend to Americans to use smartphones of Huawei and ZTE companies.
|It creates risks of pressure upon our telecommunication infrastructure. It also means danger of theft of information and espionage — the director of FBI Chris Wray said, explaining why you should not use gadgets of Huawei and ZTE.|
According to the CNBC TV channel, FBI, CIA, the NSA and the National intelligence are afraid that ZTE and Huawei closely cooperate with the Chinese government, creating thereby threat of national security of the USA.
Affirms that using these smartphones Chinese will be able to change or steal information and also to messages "imperceptible espionage".
Are also concerned by potential Chinese impact to the USA in the senate. So, the head of committee on investigation Richard Burr believes that China tries to get access to the American technologies and intellectual property through telecommunication companies.
The head of the NSA Michael Rogers is sure that opposition with the Chinese companies will become complicated in the future. According to him, the USA should "watch fixedly" them.
Huawei said that products of the company "represent not bigger risk concerning cyber security, than other suppliers in the field of information and communication technologies".
|Huawei is informed on a number of the measures of the American government directed, apparently, to interfering with business of Huawei in the American market, said in the statement of the Chinese company.|
At the beginning of February two American senators offered bills which will prohibit government structures of the USA to buy the equipment of the Chinese vendors, and the government employee — to use the Huawei and ZTE mobile phones.
2012: Australia boycotts Huawei
The Australian officials decided to prohibit Huawei to supply the equipment for a national broadband network, being afraid of the cyber attacks coming from China. In reply the management of Huawei called prohibition "the sign of regress", having noted that increased requirements are imposed to the company, considering its Chinese origin. To permit any doubts, Huawei suggests to open all source codes of the software and to give an opportunity to carry out an inspection of the equipment.
In March, 2012 the Ministry of Foreign Affairs of China also spoke against prohibition. "We hope that competent Australian authorities instead of preventing normal work of the Chinese companies for security, will take care of that they could compete on equal terms to the others" — the representative of the MFA Hong Lei said.
However Julia Gillard, the prime minister of Australia, at a press conference in March said that the government of the country supports prohibition on participation of Huawei in the project. She refused to announce details why this decision was made, having referred to reasons of national security.
"We made the decision proceeding from the interests of the country — she said. — Any assumptions that we violate trade agreements simply are not true".
In April, 2012 it became known that the Ministry of commerce of China expressed deep concern in connection with failure of the government of Australia to allow Huawei company to be equipment supplier for the national project of a broadband wireless network. The Chinese officials called this failure "unfair". The representative of the ministry Shen Danyang emphasized that the Chinese company supplies the broadband equipment and services of support to many countries of the world. And that at the Australian office Huawei of 90% of employees — locals, and the company works in the country ten years and has impeccable reputation.
"China and Australia should support the open, constructive and directed to cooperation dialog that the companies of both countries could perform trade and investments by fair rules", said in the statement of the ministry. His representative also reminded that China and Australia signed the bilateral agreement about protection of investments.
Concerns concerning the security risks proceeding from Huawei expressed in many countries, including in the USA where the ministry of commerce in 2011 prohibited the company to participate in the project on construction of a national wireless network.
Huawei is exposed to criticism and from her largest competitor, Cisco company. It was reported that John Chambers, the CEO of Cisco, on one of actions of Wall Street Journal said what the Chinese company "not always plays by rules" in the field of protection of intellectual property and a computer security. However, the head of Cisco did not give specific examples.
- ↑ White House Considers Broad Federal Intervention to Secure 5G Future WSJ
- ↑ learned about plans of the USA for merger of Ericsson for a victory over Huawei
- ↑ UK Tells Telcos to Stockpile Huawei Gear in Face of US Sanction
- ↑ The United States on Monday confirmed a Reuters report that it will amend its prohibitions on U.S. companies doing business with China’s Huawei to allow them to work together on setting standards for next-generation 5G networks.
- ↑ the American companies will be able to cooperate with Huawei for development of a 5G
- ↑ Huawei builds up 2-year reserve of ‘most essential’ US chips
- ↑ Trump administration moves to cut Huawei off from semiconductor suppliers
- ↑ US bans federals funds from being used on Huawei and ZTE equipment
- ↑ Judge rules Huawei cannot sue US government over equipment ban
- ↑ House Okays of $1 Billion Huawei/ZTE ‘Rip and Replace’ for Comms Providers
- ↑ Microsoft Among Companies Granted U.S. License to Sell Software to Huawei
- ↑ Russia and Huawei team up as tech cold war deepens
- ↑ [https://www.cnews.ru/news/top/2019-09-26_vlasti_ssha_zaplatyat_provajderam Providers of the USA
- ↑ will receive $1 billion for failure from "iron" of Huawei and ZTE]
- ↑ Huawei already producing 5G base stations without U.S. parts: CEO
- ↑ Media Statement Regarding Reported US DoJ Probes into Huawei
- ↑ US hits at Huawei innovation with blacklist of R&D centers
- ↑ Huawei says U.S. curbs to cut smartphone unit's revenue by over of $10 billion
- ↑ Huawei expects no relief from US sanctions but is confident
- ↑ [https://edition.cnn.com/2019/06/29/business/huawei-trump-us-goods/index.html Trump reversed course on Huawei. What happens now? ]
- ↑ the American technical companies found a method to bypass prohibition on deliveries of Huawei
- ↑ Huawei promises consumers in the Philippines a full refund if Gmail and Facebook will not work on its devices
- ↑ Huawei says U.S. ban hurting more than expected, to wipe of $30 billion off revenue
- ↑ of the USA for a long time postponed prohibition on Huawei. The technology dependence is too high
- ↑ S&P warns Huawei ban will hit US tech long-term
- ↑ Huawei halts delivery and development of new notebooks PCs
- ↑ Exclusive: Some big tech firms cut employees' access to Huawei, muddying 5G rollout
- ↑ Exclusive: Facebook suspends app pre-installs on Huawei phones
- ↑ prohibited Huawei to participate in reviewing of scientific articles
- ↑ of Huawei in a siege: the company separated from Wi-Fi
- ↑ of ARM will leave Huawei without processors for smartphones
- ↑ Microsoft removes Huawei laptop from store, remains silent on potential Windows ban
- ↑ System fight
- ↑ Exclusive: Google suspends some business with Huawei after Trump blacklist - source
- ↑ U.S. Authorities Unveil Sweeping Set of Charges Against China’s Huawei
- ↑ Japan bans Huawei and its Chinese peers from government contracts
- ↑ Washington Asks Allies to Drop Huawei
- ↑ Six top US intelligence chiefs caution against buying Huawei phones
- ↑ 39,0 39,1 [http://www.osp.ru/news/articles/2012/15/13014466/ Australia