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2024
Portugal's telecom operators have been banned from purchasing Huawei equipment. They will lose 1 billion euros
Portugal's telecom operators have been banned from purchasing Huawei equipment. They will lose more than 1 billion euros. This estimate was announced in September 2024 by EY analysts. Read more here.
Selling telecom equipment to operators for beef to circumvent sanctions
On June 14, 2024, it became known that the Chinese company Huawei found an unusual way to bypass the sanctions imposed by the United States by offering telecommunications equipment in exchange for beef. According to Reuters, the company sells its base stations and other equipment using a barter system, which allows it to remain on the market despite restrictive measures.
Huawei has become the biggest importer of beef in China, receiving barter meat for its base stations. This approach allows the company to avoid using sanctioned dollars and yuan. According to the source of the publication, such a scheme was first implemented back in 2019, when sanctions pressure from the United States became especially tangible.
To implement this plan, Huawei registered a subsidiary of Shanghai Mossel Trade Co., which sells imported food and own-brand wine. According to the newspaper, the president of the company is the son of Huawei founder Ren Zhengfei, and Huawei CFO Meng Wanzhou is also listed among Mossel employees.
The barter scheme allows Huawei to bypass currency controls and avoid the attention of US authorities. The supplier of meat for the company was an Argentine firm that could not pay Huawei's iron in US dollars or Chinese yuan due to high inflation and restrictions on foreign exchange transactions. The Argentine peso, according to Rosstat, depreciates much faster than the Russian ruble, which makes it unsuitable for international settlements.
As noted by The Guardian, barter volumes have only increased over time, especially after rising US interest rates in 2022. In addition, in December 2023, China suspended the currency swap agreement with Argentina, which also influenced the choice of alternative settlement methods.
Huawei is also trading telecommunications equipment for Chilean salmon and wine, expanding the range of products accepted as payment, according to Tom's Hardware.[1]
U.S. revokes export licenses allowing Intel and Qualcomm to supply Huawei with semiconductors
The administration of US President Biden in May 2024 revoked export licenses allowing Intel and Qualcomm to supply Huawei with semiconductors, as Washington increases pressure on the Chinese company.
The move affects the supply of chips for laptops and Huawei mobile phones, the sources said.
Washington has already imposed tough restrictions on the sale of American technology to Huawei, but Republican lawmakers have urged President Joe Biden to take even tougher action.
2023
Huawei bypasses US sanctions by opening clandestine industries across China
On August 23, 2023, it became known that the telecommunications corporation Huawei Technologies was opening secret production facilities throughout China in order to bypass US sanctions.
According to Bloomberg, citing information received from the Semiconductor Industry Association (SIA), Huawei is creating semiconductor manufacturing enterprises under different names. Such a scheme makes it possible, bypassing the current restrictions, to purchase American equipment for the release of chips and the necessary materials that would otherwise be unavailable.
 | Huawei receives about $30 billion in government funding from the Chinese government and its hometown of Shenzhen. It has acquired at least two existing plants and is building at least three more facilities, SIA said in a statement. |  |
The released data, as noted, caused concern in the administration of the US President Biden. Against this background, the American authorities are considering the possibility of tightening export control in China. In turn, the PRC criticizes the American government, arguing that the United States is trying to restrain the economic development of China. Beijing also says it intends to develop its own alternatives to imported chips, manufacturing equipment and critical technology components.
According to SIA, at least 23 production facilities with planned investments of more than $100 billion are being built in China as of August 2023. According to the association, by 2029 or 2030, the PRC will have more than half of the world's semiconductor production capacity, providing for the use of old 28-nm and 45-nm technologies. Such products can be used in military equipment and in automotive systems, which is alarming for the United States and Europe.[2]
Huawei has found a way to produce smartphones with support for 5G networks under sanctions
July 12, 2023 it became known that the Chinese telecommunications corporation Huawei found opportunities to bypass the sanctions USA on production smartphones with support for fifth-generation mobile communications (). 5G
US sanctions hit Huawei's mobile business hard. This company once competed with Apple and Samsung for the title of the world's largest smartphone manufacturer, but restrictions imposed by the United States deprived Huawei of access to chipmaking tools that are used in the most advanced mobile devices. As a result, Huawei was forced to focus on the supply of 4G devices, losing to competitors.
According to Reuters, this could change by the end of 2023 thanks to the release of Huawei processors of their own design for 5G devices. It is said that the production of such chips will be carried out by Semiconductor Manufacturing International Co (SMIC). It is noted, in particular, that the SMIC N + 1 process will be used, equivalent to the standards in 7 nm. Thus, Huawei will have at its disposal chips that allow you to create smartphones with 5G support.
At the same time, there are a number of difficulties. Market participants note that SMIC will be able to provide Huawei with approximately 2-4 million processors for 5G devices, but the level of yield using the described technological process will not exceed 50%. This means that the cost of the products will be quite high, which will negatively affect the final price of smartphones for consumers.
The Chinese-backed China Securities Journal reported in mid-2023 that Huawei had increased its 2023 mobile delivery plan to 40 million units from 30 million previously predicted. At the same time, there is no mention of shipments of devices with 5G support.[3]
Huawei replaced 13,000 components in its electronics due to US sanctions
Tough US sanctions on Huawei Technologies have forced the Chinese telecommunications company to replace thousands of electronic components in its products. This became known on March 15, 2023.
USA The founder of Huawei spoke about the work on import substitution in light of pressure from the outside Ren Zhengfei during a speech at Shanghai University. transport According to him, due to restrictions on the import of certain products by foreign suppliers and the inability to use the capacities of the contract manufacturer TSMC , Huawei had to replace more than 13 thousand components with Chinese counterparts. Moreover, Huawei was forced to redesign approximately 4,000 PCBs for its products, which turned into a significant financial cost and took a long time. These efforts, as noted, have stabilized board production.
US sanctions have deprived Huawei of the opportunity to use chips from American companies and use American technology to produce its own products. Against this background, the company allocates huge funds for research and development work: in 2022, the corresponding costs reached $23.8 billion, and in the future they will continue to increase.
In addition, Huawei has created its own enterprise resource planning system called MetaERP, which includes key business functions such as financial management, supply chains and manufacturing operations. MetaERP will appear on the market in April 2023. It was also noted that Huawei does not plan to release a competitor to ChatGPT based on a neural network - instead, the company expects to create a large-scale computing platform for applications based on artificial intelligence.[4]
US President finally cut off Huawei from American technology
The Chinese corporation Huawei will no longer be able to cooperate with American companies on any terms. The administration of President Joe Biden, as it became known at the end of January 2023, completely cut off Huawei from technologies developed in the United States.
For several years, Huawei has faced U.S. restrictions on exporting solutions for networks 5G and other products. At the same time, the US Department of Commerce granted licenses to some American firms to sell certain goods and technologies to Huawei. For example, Qualcomm in 2020, she received permission to supply, in the interests of the Chinese company, chips for smartphones communication support. 4G/LTE
According to Reuters, new licenses for the supply of American products to Huawei will not be issued. The policy includes a ban on shipments of products ranging from 4G products and 6/7 Wi-Fi controllers to solutions in artificial intelligence, high-performance computing and cloud platforms. Knowledgeable persons, who wished to remain anonymous, say that the Biden administration intends to completely exclude any possibility of cooperation between American companies with Huawei.
The goal is to deprive Huawei of the ability to buy or develop semiconductor chips that are used in most of its products. Against this background, the representative of the Ministry of Foreign Affairs of China Mao Ning (Mao Ning) said that the PRC opposes the United States to abuse too broad the concept of national security to unreasonably suppress Chinese firms.
| | This step contradicts the principles of a market economy and the rules of international trade and finance, undermines the confidence of the international community in the US business environment and is a blatant technological hegemony, Ning said.[5] | |
2022
Huawei's lack of processors due to US sanctions
On December 21, 2022, it became known that Huawei had exhausted its own processor stocks for smartphones. This is evidenced by statistics collected by the analytical company Counterpoint Research.
Amid US sanctions, the introduction of which began against Huawei in 2019 (more here), the Chinese manufacturer has lost the opportunity to purchase advanced chips from American developers. Later, the restrictions were expanded, as a result of which Huawei cannot order the production of processors from enterprises using American software or equipment, in particular TSMC. Read more here.
Business development under US sanctions
By the end of 2022, Huawei continues to be under American sanctions. About how the Chinese company is developing its business in conditions of serious restrictions, writes The Economist.
Measures by the United States have led Huawei to sharply lose ground in the global smartphone market. In addition, sales of telecommunications equipment have decreased - primarily for 5G networks. In such a situation, 78-year-old Ren Zhengfei, founder and president of Huawei, headed for a comprehensive transformation of the company. Instead of several key areas, Huawei is now developing a wide variety of business areas - from the automotive industry to the agro-industrial industry.
In particular, Huawei provides software and electronic components to vehicle manufacturers. These are, for example, power management systems for electric vehicles. Agricultural complex enterprises are supplied with sensors to monitor the condition of the soil, which help to fine-tune irrigation systems and reduce the amount of fertilizers required.
Despite the fact that due to sanctions, many countries have abandoned Huawei's 5G equipment, such products are in demand in developing regions. The company supplies its 5G solutions to Indonesia, Saudi Arabia, South Africa and Turkey. Chips used in network equipment can be made by Chinese chipmakers such as SMIC. This allows Huawei to opt out of TSMC services. It also says that the company may try to resume production of 5G-enabled smartphones using not the most advanced processors.
In the corporate segment, Huawei is actively developing projects to build data centers and cloud computing platforms. The outlook in the corresponding direction looks especially strong in China, where the company is counting on large contracts in the public sector.
In terms of software, Huawei is promoting its own HarmonyOS operating system. The company has already sold about 300 million HarmonyOS devices, including laptops, wearable gadgets, household appliances, etc.[6]
In the United States banned the import and sale of equipment Huawei, ZTE and a number of other Chinese companies
U.S. Federal Communications Commission banned the import and sale to the country telecommunication of equipment manufactured by,, and Huawei ZTE Hytera a number of other companies from. PEOPLE'S REPUBLIC OF CHINA This became known on November 26, 2022.
| | The list of equipment and services subject to the order for November 2022 includes communication tools produced by Huawei Technologies, ZTE Corporation, Hytera Communications, Hangzhou Hikvision Digital Technology and Dahua Technology, as well as their subsidiaries and affiliates, the text of the order published on the FCC website says. | |
The text notes that this equipment "poses an unacceptable risk to national security"[7] to[8].
Canada bans Huawei and ZTE 4G- and 5G equipment
On May 19, 2022, Canada announced a ban on equipment for 5G networks manufactured by Chinese companies Huawei Technologies and ZTE in order to protect national security, joining the rest of the countries of the so-called Five Eyes intelligence-sharing network.
| | We exclude Huawei and ZTE from our 5G networks, Industry Minister Francois-Philippe Champagne told reporters in Ottawa. Providers who already have this equipment installed will have to stop using it and dismantle it under the plans we are announcing today. | |
Champagne added that companies will have to dismantle their 5G equipment by June 2024, with no compensation due. Companies using 4G equipment should remove it by the end of 2027.
The decision, up until that statement, was delayed amid diplomatic tensions with. China The rest of the Five Eyes network - which includes,, Canada, and USA Great Britain Australia New Zealand - have already banned the equipment.
In September 2018, Canada first announced that it would consider possible national security threats when introducing Huawei equipment.
The decision to ban the use of equipment came after telecoms companies in Canada had already opted to use 5G equipment from other companies. ZTE did not immediately respond to a request for comment.
Alykhan Velshi, vice president of corporate affairs for Huawei in Canada, said in an interview that the company was still waiting to hear "what kind of threat to national security they believe Huawei poses."
Velshi said Huawei still has 1,500 employees in Canada, mostly in research and development, and sells products such as mobile phones and will continue to do so.
In addition to the ban, Public Security Minister Marco Mendicino said Canada would develop new legislation to protect critical financial, telecommunications, energy and transport infrastructure from cyber threats.[9]
2021
US President signs law banning Huawei telecom equipment
On November 11, 2021, US President Joe Biden signed a law that would ban companies such as Huawei and ZTE from obtaining licenses for network equipment in the United States.
The piece of legislation, the Secure Equipment Act of 2021, would require the Federal Communications Commission (CSF) to pass new rules that would clarify that the body would no longer consider or approve any applications for network equipment permits that posed a threat to the nation's national security.
In 2020, the CSF officially classified Huawei and ZTE as threats to national security, a decision made after the agency established that both companies have close ties with the Chinese Communist Party and the country's military apparatus. Since March 2021, CSF Commissioner Brendan Carr has repeatedly called for the adoption of the relevant law, saying that the CSF has allowed the use of 3,000 applications for Huawei network equipment.
| | Once we have determined that Huawei equipment or other equipment poses an unacceptable risk to U.S. national security, it makes no sense to allow that same equipment to be purchased and embedded in our communications networks unless federal money is involved. The presence of these unsafe devices in our networks is a threat, not the source of funding used to acquire them, "said senior Republican on the Federal Communications Commission Brendan Carr. | |
In addition to Huawei and ZTE, other Chinese companies flagged as national security threats such as Hytera Communications, Hikvision and Dahua Technology. At the end of October 2021, CSF also deprived China Telecom of the right to work in the United States, while the company was supposed to pack up and stop providing services in the domestic and international markets by the end of 2021.
Due to the fact that the United States is especially actively pursuing Huawei, and other countries have followed suit, the Chinese technology giant reported a sharp decline in revenues for the first half of the year: as of the end of June 2021, sales amounted to $49 billion, compared with $70 billion at the same time in 2020. Presenting the financial results, Huawei Chairman Eric Xu said the company's goal in the future is sustainable survival.[10]
x86 Server Business Talks After Intel Processor Ban
In November 2021, Huawei Technologies Co. is in talks to sell its x86 server division after the US blacklisted the company, making it difficult to ship processors from Intel, in the latest blow to the Chinese tech giant from US sanctions.
US authorities will pay telecom operators $2 billion to abandon Huawei equipment
In mid-July 2021 U.S. Federal Communications Commission (FCC) , she decided to reimburse medium and small American telecommunications companies that refused to use network equipment Huawei and. ZTE More. here
Trump revokes licenses from Intel and other companies to work with Huawei
In mid-January 2021, the Trump administration notified some Huawei suppliers, including chipmaker Intel, to revoke the Chinese company's supply licenses. The White House is also set to reject dozens of other applications for permits to supply American products to the Chinese telecommunications equipment maker.
In an email that made Reuters aware of the administration's actions, the Semiconductor Industry Association said the Commerce Department said there were "plans to withdraw a significant number of export requests to Huawei and reject at least one previously issued license." Anonymous sources familiar with the situation reported the revocation of eight licenses.
Reuters, citing its sources, reports that Intel and Japanese flash memory chip maker Kioxia (formerly Toshiba Memory) have already lost their licenses. Kioxia noted that it "does not disclose business details regarding specific products or customers." The letter notes that the actions cover a "wide range" of electronic industry products.
According to the interlocutor, applications for a license for goods and technologies for Huawei in the amount of $280 billion have not yet been processed, but now they are likely to be rejected
According to the news agency, the United States made the latest decisions during 12 meetings that began on January 4, 2021. They were attended by senior officials from the US Department of Commerce, the US Department of Defense (Pentagon), the Office of Reconstruction and Stabilization, and the US Department of Energy. Officials developed detailed guidance on which technologies support 5G and then applied the standard, the source added. Thus, the latest decisions, according to Reuters, mean the rejection of the vast majority of about 150 controversial applications and the revocation of about eight licenses.[11]
2020
In Britain, telecom operators will be fined $133 thousand a day for installing Huawei equipment
At the end of November 2020, the UK passed a new security bill that threatens telecommunications companies with huge fines if they cannot tighten security measures and continue to install Huawei equipment when conducting a 5G mobile network. Some fines can be up to 10% of turnover or more than $133 thousand per day. Read more here.
US gives Brazil $1 billion in exchange for ban on Huawei 5G equipment
In mid-October USA 2020, they increased pressure on, Huawei providing Brazil funding to effectively block the access of the Chinese telecommunications company 5G to new generation national networks. More. here
Sweden bans Huawei and ZTE equipment in 5G network development
In mid-October 2020 Sweden , it banned the use of telecommunications Huawei ZTE equipment when deploying networks 5G in the country. Thus, Sweden joined other European states that limited the role of Chinese suppliers for security reasons. More. here
Samsung and SK Hynix stop supplying chips for Huawei
On September 9, 2020, it became known about the decision of Samsung Electronics and SK Hynix to stop supplying memory chips to Huawei due to US sanctions imposed on the Chinese manufacturer of telecommunications equipment and mobile devices. South Korean partners will break off cooperation with Huawei in mid-September 2020.
According to experts, the breakdown in trade relations with Huawei will negatively affect the financial performance of Samsung and SK Hynix. Seeing that Washington's sanctions are increasingly limiting opportunities for semiconductor exports, Huawei has recently tried to maximize chip purchases. According to DRAMeXchange analysts, strong demand from Huawei contributed to the rise in spot prices for DRAM memory and brought windfall profits to chip makers. It is expected that after September 15, DRAM chips will become cheaper.
According to ZDNet, the termination of cooperation with Huawei will slightly affect Samsung's revenues, since the South Korean company has many large customers, including Apple leading Chinese manufacturers. smartphones
According to Korea JoongAng Daily, the annual trade turnover of Samsung and SK Hynix with Huawei is about 6.35 and 1.5 trillion won ($5.4 billion and $1.3 billion), respectively. Approximately 40% of SK Hynix's revenue for the first half of 2020, or $5.5 billion, came from the supply of products to Chinese companies, many of which purchased chips for subsequent delivery to Huawei.
The production of memory chips is not complete without software, equipment and technology of American origin, so Samsung and SK Hynix are forced to follow the requirements of the US authorities, which prohibited Huawei from accessing components, including memory chips developed or manufactured using technology from the United States.[12]
Huawei's increased investment in Russia after US sanctions
At the end of August 2020, it became known that Huawei increased its investment in Russia after the United States imposed sanctions against the telecommunications company. This was announced by Huawei founder Ren Zhengfei. Read more here.
England without Huawei and ZTE
Chinese companies Huawei and ZTE may lose the opportunity to work in the UK. This may affect both the sales of their smartphones and the use of their telecom equipment for the construction of cellular networks. The reason may be a violation of patents of the American company Unwired Planet and the Canadian Conversant Wireless, associated with cellular networks of the second, third and fourth generations[13].
The holders of patents for mobile technologies Unwired Planet and Conversant Wireless, writes in August 2020 the ComputerWeekly resource, won a significant victory in the Supreme Court of Great Britain in two separate cases that determine the licensing conditions of the patented technology necessary for past, present and future mobile network standards.
Litigation between the companies lasted since 2013 and their cause was precisely a violation of the licensing conditions of standard basic patents (SEP). The license to use a communication standard patent must be granted to third parties under Fair, Reasonable and Non-Discriminatory (FRAND) conditions, operating throughout the world. Huawei and ZTE, for their part, sought to obtain a license to use Unwired Planet and Conversant Wireless patents only in the UK.
India set to ditch Huawei equipment in its telecom networks - FT
India intends to gradually abandon the use of equipment from Huawei Technologies and other Chinese companies in its telecommunications networks in connection with the recent aggravation of relations between the two countries, writes the Financial Times in August 2020, citing knowledgeable sources (Communication (Indian market)).
Thus, the Huawei, which previously faced severe restrictions from the United States, may lose access to one of the most important markets for it.
There has been no formal ban on Huawei or ZTE equipment, however, top executives of industry companies and officials report that key ministers in the Indian government have made clear that Indian telecom providers should avoid acquiring Chinese equipment for future investment projects, including 5G networks.
Huawei bypasses US sanctions and will continue to update Android in its smartphones
On August 19, 2020, it became known that Huawei bypassed US sanctions and will continue to update Android in its smartphones. Read more here.
US restricts Huawei's access to American technology - State Department
The United States is restricting the access of the Chinese technology company Huawei to American technology, the head of the State Department Mike Pompeo said in a statement issued on August 18. Interfax got acquainted with the statement.
| | "Today we dealt a direct blow to Huawei and the Chinese Communist Party (CCP), further limiting Huawei's ability to acquire American technology," said head of department Mike Pompeo in a statement posted on Twitter. | |
| | He noted that the United States thus reduced Huawei's ability to "jeopardize the integrity of world networks and the personal data of Americans." "We will not tolerate attempts by the CCP to jeopardize the privacy of our citizens, the intellectual property of our business or the integrity of next-generation networks around the world," Pompeo said in a statement. | |
The State Department also said that the Commerce Department has added 38 persons affiliated with the Huawei to its list of foreigners who are prohibited from receiving certain confidential US technologies.
British government obliges operators to abandon Huawei equipment until 2027
From the end of 2020, Huawei Technologies Co. will be banned from supplying equipment for next-generation mobile networks in the UK, a massive blow to the Chinese company and risks exacerbating tensions between London and Beijing.
Under a plan agreed by Prime Minister Boris Johnson in July 2020, operators will not be able to add new Huawei components to their 5G networks beyond December 31. All equipment made by the Shenzhen-based company that has already been installed should be removed from 5G infrastructure by 2027, the government said.
The decision to separate Huawei's kit from Britain's networks represents a major coup by Johnson and threatens to fuel growing hostility between Britain and China at a very sensitive time. China warned Johnson would face "consequences" if the UK treated him as a "hostile partner."
Companies using Chinese equipment will lose government contracts in the United States
The administration of US President Donald Trump intends to introduce rules that will prohibit the US government from buying goods or services from any company using the products of five Chinese tech giants - Huawei, Dahua, ZTE, Hikvision and Hytera.
As the Reuters news agency reported in July, this ban could have far-reaching consequences for companies selling goods and services to the US government. Any firm that uses the equipment or services of these Chinese companies will no longer be able to sell them to the US government without obtaining permission from the authorities.
| | "The danger our country faces from foreign adversaries like China seeking to infiltrate our systems is too great. The Trump administration supports our government in the fight against malicious networks such as Huawei by imposing a ban on federal purchases, "explained Russell Vought, acting director of the US Administration and Budget Office. | |
The US government contract market has an annual turnover of about $500 billion, and now access to it may be difficult for those companies that use Huawei, Dahua, ZTE, Hikvision or Hytera equipment. For example, Dahua and Hikvision are the world's largest suppliers of components for video surveillance systems, and it may not be so easy to do without their products.
According to the official, the new rules are introduced not only to prohibit government agencies from using products from Huawei, Dahua, ZTE, Hikvision or Hytera, but they are also an attempt to limit the influence of Chinese companies. In other words, American companies are given the choice of doing business with the US government or with Chinese firms.
The new rules will come into force on August 13, but it remains unknown whether they will affect only future contracts, or existing ones.
BT and Vodafone need 5 years and billions to ditch Huawei equipment
In mid-July 2020, BT and Vodafone told British lawmakers that it would take them at least five years to replace equipment from China's Huawei if the government bans the company's products from 5G mobile networks.
| | British leadership in 5G will be irrevocably lost if mobile operators are forced to spend time and money replacing existing equipment, says Scott Petty, chief technology officer at Vodafone UK. | |
BT estimates it will take "ideally" seven years to replace Huawei's equipment due to practical constraints. Vodafone said it would cost millions of pounds to replace thousands of Huawei base stations and antennas across the country, the same figures call BT, which has already set aside $632m to comply with earlier restrictions. At the same time, from a logistical point of view, a complete change of equipment within three years - namely, the government insists on this period - is completely impossible, since it would require the disconnection of 4G and 2G customers, as well as 5G throughout the country.
About two-thirds of BT's 4G mobile network is made up of Huawei equipment, the rest of it is Nokia. About a third of Vodafone's 4G networks are provided by Huawei, while the rest of the equipment is owned by Ericsson. Most of BT's 5G networks are also Huawei equipment. Vodafone and BT are known to be partnering with Ericsson and are already testing equipment from new suppliers. However, the management of the companies still believes that it is better for the British government to make efforts to expand the 5G coverage area and invest in the next stage of deploying this technology instead of destroying the equipment of the Chinese telecommunications equipment manufacturer.[14]
WSJ learned about US plans to take over Ericsson to defeat Huawei
The administration of US President Donald Trump is considering different schemes to confront Chinese Huawei in the global market for telecommunications equipment for 5G networks, writes The Wall Street Journal (WSJ)[15] to [16][17]
| | "These ideas show how far the US is willing to go in its fight with China over who will supply the world with advanced technology," the newspaper writes. | |
The Chinese company owns 28% of the global telecommunications equipment market, and it sells it "from Asia to Germany." American suppliers are still too small to compete with Huawei, meaning large wireless carriers unwilling to buy Chinese equipment still rely on three international suppliers - Ericsson, Nokia and Samsung Electronics Co., the publication notes.
The White House is poised to incentivize U.S. tech sector leaders like Cisco Systems to take over Ericsson or Nokia, according to WSJ sources. The US authorities plan to provide tax breaks and provide funding, support to investors ready to invest in one of the European equipment manufacturers. However, according to sources, American business did not show interest in buying low-margin companies.
In parallel, the option of supporting open technology for networks is being discussed, which will make it easier for American startups to develop equipment for 5G.
| | As the publication found out, a group of experts, including ex-NASA director Daniel Goldwin and former Nokia top manager Hossein Muin, prepared a report for the White House. They proposed creating, with the support of the federal government, a technology consortium that would allow Huawei to catch up in the development of technology for fifth-generation networks. This idea is supported by a group of private investors led by Cerberus Capital. | |
| | "For the first time in modern history, the United States has not become a leader in a new wave of critical technology," telecommunications experts warned in a White House report. | |
British intelligence agencies advise telecom operators to stock up on Huawei equipment due to new US sanctions
On June 22, 2020, it became known that the British special service began to advise telecom operators to stock up on Huawei equipment due to new sanctions allegedly being prepared by the United States.
cyber security The National Cyber Security Center (NCSC), which is part of the British electronic intelligence service - the Great Britain Government Communications Headquarters (GCHQ), was sent to several telecommunications companies, including and, BT Group Vodafone a letter (copy is Reuters available), which contains a recommendation to support adequate supplies of spare parts from all manufacturers.
The report also points to an increased danger to Huawei equipment and uncertainty about the future ability to provide updates to these products in the face of pressure from the United States.
| | Maintaining the relevance of products and components is a prerequisite for maintaining network security. The escalation of US actions against Huawei could affect its ability to release updates for products containing American technology, the letter said. | |
An NCSC spokeswoman in a conversation with Reuters explained that the National Cyber Security Center gave operators several recommendations on precautions, while continuing to study the impact of these sanctions on British networks.
Earlier in 2020, the British authorities assigned Huawei the status of a "high-risk manufacturer," limiting the company's 5G market share at 35% and excluding it from the part of the network with a large amount of data.
By June 22, 2020, the British government is preparing a list of recommendations on how to deploy Huawei equipment taking into account the maximum security of British networks. The final decision on this issue should be in the coming weeks.[18]
US companies will be able to partner with Huawei to develop 5G
Министерство торговли США приняло 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.[19] The decision to cancel the previously imposed bans on the cooperation of American companies with Huawei in the field of creating a 5G communication system. As noted in the department, US participation in the development of standards for the next generation networks "affects the future of 5G, autonomous vehicles, artificial intelligence and other advanced technologies."
According to representatives of the department, these changes should not be seen as a sign of a weakening of the US determination towards Huawei. The list of Huawei enterprises puts the United States at a disadvantage in the field of standards, where companies develop specifications that allow equipment from different companies to work together[20].
Huawei stocked up on American chips for 2 years ahead
On June 8, 2020, it became known that Huawei had stocked up on important American chips for 2 years to come, which would minimize the negative impact of Washington's sanctions. Most of these purchases from the Chinese company came from Intel server processors, as well as programmable chips from Xilinx.
According to Nikkei, Huawei has filled warehouses with "the most important components" for its base stations and equipment used in cloud services. Stocks began to be created at the end of 2018.
| | Xilinx programmable chips are too complex to replace at the moment. Even Huawei's own chipmaker, HiSilicon, cannot create chips that can fully compete with Xilinx's offerings, a knowledgeable source told Nikkei. | |
According to its own data, Huawei in 2019 spent 167.4 billion yuan (about $23.5 billion) on the purchase of semiconductor components and materials. This is 73% more than was spent a year earlier.
Sources also told Nikkei that since 2019 the company has also been stocking up on memory chips. For fear that the United States may extend sanctions to DRAM chips and NAND flash, the Chinese vendor purchases these products from Samsung, SK Hynix, Micron and Kioxia. According to Korean media, Huawei turned to the management of Samsung and SK Hynix and asked for guarantees of uninterrupted supply of microcircuits.
The publication notes that Huawei was unable to buy most of its stock directly, so it purchased components from retailers and other third parties, which led to higher prices and a lack of support for the contractor: Huawei will not be able to effectively solve problems or receive compensation for defective equipment, as well as update software, which turns out to be tied to those processors that were bought.[21]
TSMC stopped accepting Huawei orders due to US sanctions
On May 19, 2020, it became known that TSMC stopped accepting new orders from Huawei for the production of chips after new restrictions that the US authorities imposed on the Chinese company (manufacturers were banned from selling semiconductors using American technologies to Huawei). Read more here.
Trump bans everyone in the world from selling chips with American technology to Huawei
In mid-May 2020, the administration of US President Donald Trump announced new restrictions on Huawei. The U.S. Commerce Department has been tasked with blocking Huawei from supplying semiconductor chips that use American programs and other technologies. This applies to all manufacturers in the world.
According to the White House, despite the sanctions, Huawei and its subsidiary HiSilicon continue to use American developments in their semiconductor components. As a result, the Ministry of Trade decided to amend the export rules to "strategically block Huawei's acquisition of chips directly using US software and technology."
| | We must not allow US technology to be used in malicious actions contrary to the interests of US national security and foreign policy, "said Commerce Secretary Wilbur Ross. | |
According to the Wall Street Journal, the new restriction prevents foreign semiconductor manufacturers that use American software and technology from sending products to Huawei without first obtaining a license from US officials.
The Chinese newspaper Global Times reported that in response to the new restrictions, China is ready to include American companies in the "list of unreliable organizations."
China will take drastic countermeasures to protect its legal rights if the U.S. continues to implement a plan that bans major chip suppliers, including Taiwan's TSMC, from selling chips to Huawei, according to a Global Times publication.
Those countermeasures could include opening an investigation and placing restrictions on major U.S. companies like Apple, Cisco and Qualcomm, as well as suspending purchases of Boeing planes.[22]
US companies banned from buying Huawei equipment for public money
In mid-March 2020, American companies were officially banned from buying Huawei and ZTE equipment with government-provided money, since the products of these Chinese manufacturers were recognized by the authorities as unsafe for the country.
On March 12, 2020, the president USA Donald Trump signed the Secure and Trusted Communications Networks Act, which, according to the White House, "will help protect our telecommunications infrastructure by banning the use of federal funds to purchase equipment from companies that pose a threat to national security."
The law also assumes that the Federal Communications Commission (FCC) will create a $1 billion fund to help small telecommunications companies - they will be reimbursed for the disposal and replacement of prohibited equipment from Huawei and ZTE.
Donald Trump also signed a decree introducing an emergency regime in the United States to protect American information and communication networks from foreign threats. It prohibits the purchase and use of equipment that is produced using American technologies by companies that threaten the country's national security.
In turn, Huawei opposes the ban on the use of its equipment and disputes the fact that it poses a threat to US national security. One of the main arguments of the company is that the US authorities did not provide any evidence to support their accusations
Huawei has filed a lawsuit against the U.S. Federal Communications Commission. The corporation believes it believes that the provisions of the US Constitution were violated due to the ban on participation in the federal subsidy fund program.
| | Banning a company like Huawei only for being based in China does not solve cybersecurity problems, "said Song Liuping, Huawei's general counsel. [23] | |
Court bars Huawei from appealing U.S. government decision to ban company equipment
On February 18, 2020, Huawei Technologies lost a court case over a US government ban on equipment for a Chinese company in government agencies. Huawei will not be able to appeal the decision of the authorities.
In March 2018, Huawei filed a complaint with the Pleino District Court (Texas, USA) stating that Article 889 of the National Defense Act, adopted in 2019, which prohibits government agencies from purchasing Huawei products, is unconstitutional because it violates numerous constitutional principles and upholds the company without evidence.
In a 57-page ruling, District Judge Amos Mazzant affirmed the legality of the restrictions imposed against Huawei.
He referred to the US defense budget for fiscal year 2019, which indicates that the activities of Huawei and another Chinese company - ZTE - could pose a threat to US national security, since they can receive and transmit information to the PRC government.
| | Contracting with the federal government is a privilege, not a constitutionally guaranteed right - at least to the best of the court's knowledge - Mazzant argued. | |
According to him, what Huawei derogatorily calls an unconstitutional interpretation of the facts on the part of Congress, it would be more accurate to describe as a careful investigation by Congress of the potential threat of US national cybersecurity. The proceedings in Congress ultimately led to the adoption of a bill that became a preventive response to such a threat, he stressed.
At the same time, the judge noted that Huawei can continue all business with any non-state company and private person in the United States and other countries.[24]
2019
US allocated $1 billion to replace telecom equipment ZTE and Huawei
In mid-December 2019, the US Congress approved a bill according to which small telecommunications operators will be provided with $1 billion to replace equipment purchased from Chinese manufacturers Huawei and ZTE.
The bill obliges the Federal Communications Commission to allocate funds for a "replacement program," which covers telecom providers with less than 2 million subscribers who bought Huawei or ZTE network equipment before August 2018. The authors of the bill proceed from the premise that such equipment creates an "unacceptable risk" to US national security, since its manufacturers are closely associated with the Chinese government.
Thus, the new bill is designed to protect "national communication networks from foreign influence and data leakage to a potential adversary by allocating financial assistance to small and rural wireless providers who must completely replace the existing network equipment of manufacturers subject to US sanctions with safer and more proven equipment of manufacturers authorized for this purpose."
The measures taken also suggest that the blacklist of equipment manufacturers may be expanded in the future. The bill emphasized that particular concern is the use of equipment that can track or redirect user traffic, allow hidden data packets, or remotely disrupt networks.
A similar bill has already been approved by the U.S. Senate Committee on Trade in July 2019. As a result, the Federal Communications Commission allocated $700 million in subsidies to stop supplying Huawei equipment to large American telecom operators in order to protect their security.[25]
US authorities allow Huawei to use Microsoft software
At the end of November 2019, the US Department of Commerce issued a license to Microsoft to sell software to the Chinese company Huawei.
The US authorities have again extended Huawei's license to work with American companies for 90 days. The Chinese company will be able to work with some companies under a temporary license until February 16, 2020 in cases where questions do not concern US national security. Nevertheless, Huawei has been on the blacklist of legal entities since May: Google, Intel and Panasonic have suspended cooperation with the company. However, other corporations, including Microsoft, are ready to continue working with Huawei.
| | On Nov. 20, the U.S. Commerce Department granted Microsoft 's request to export mass-consumer software to Huawei, the company said in a statement. | |
In addition to Microsoft, 300 more companies applied for a license, but not all were approved. Which other companies, besides Microsoft, received permission from the US government to do business with Huawei is unknown by November 22, 2019.
| | The department issues these licenses to allow for limited activities that pose no significant risk to national security interests or United States foreign policy, the department said in a statement. | |
The blacklisting of Huawei by legal entities has seriously affected the income of some American companies. However, the case may go even further. A group of senators have asked US President Donald Trump to suspend business licenses with Huawei as they make Huawei'continue to pose a serious threat to US telecommunications infrastructure and national security more broadly[26]
Russia and Huawei rally as Cold War tech intensifies
At the end of October 2019, the publication Nikkei published an article on how tense relations USA with made it possible to get closer to. Huawei Russia
| | Huawei is China's biggest tech Huawei. China is friends with Russia, so it is quite logical that Huawei now plays a leading role in this friendship, "said Vladimir Rubanov, managing director of the Russian IT company Rosplatforma. | |
Recently, Huawei has achieved Russia significant success and has become a leader in the local market in several areas at once - from the deployment of mobile networks 5G to sales. smartphones In addition, Huawei began to expand research and design activities in Russia. In turn, Russia receives investments and assistance in training specialists from the Chinese technical giant.
According to Dmitry Komissarov, CEO of New Cloud Technologies, Russian qualified specialists are able to help Huawei maintain innovative advantages.
| | There are not many countries with so many programmers and engineers, "he said. - Russia is not the only country that can offer good employees of this area, but one of the options remains. | |
Thanks to its huge financial resources, Huawei has every opportunity to attract Russian talent. Komissarov noted that Huawei hired several of his acquaintances from the IT industry, doubling its previous salary.
According to Rubanov, relations with Huawei will benefit Russia - the Chinese company provides the Russian economy with much-needed foreign investment, and also helps local technicians acquire new skills.
Leading analyst at Mobile Researh Group Eldar Murtazin says Huawei's success in the Russian smartphone market is largely due to large investments in the Honor brand. Honor gained the trust of Russian consumers by offering relatively high-quality phones at low prices that Huawei's competitors either could not or did not want to fight. Murtazin believes that the accusations of espionage by the Chinese corporation make no sense.
| | In Russia, Huawei is considered as a law-abiding company, because no one has provided any evidence, he added. | |
The Nikkei article notes that due to the aggravation of relations with the United States, Huawei began to consider Russia as a potential source of innovation.[27]
US providers will receive $1 billion to abandon Huawei and ZTE hardware
The US House of Representatives has unveiled a bill that plans to allocate $1 billion to small and rural wireless service providers. The funds should be used to replace Huawei and ZTE network equipment. It, according to American lawmakers, poses a threat to US national security. This was reported by Reuters[28].
As the newspaper notes, a similar bill was approved by the US Senate Committee on Trade in July 2019. It provided for the allocation of approximately $700 million to large telecom operators in the form of subsidies in exchange for abandoning Huawei equipment. It was assumed that such measures would help "secure the supply chains of telecommunications equipment."
Refusal to replace Google services in smartphones with Yandex applications
Huawei is not going to replace Google services with Yandex applications in its smartphones. Jaime Gonzalo, vice president of Huawei's mobile services in Europe, spoke about this in an interview with RIA Novosti at the end of September 2019. Read more here.
Huawei began producing 5G equipment without American components
Huawei Technologies already makes base stations for 5G networks without the use of components developed by American companies. This was announced on September 26, 2019 by the founder and actual head of the Chinese manufacturer of telecommunications equipment and smartphones, Zhen Zhengfei.
According to him, from October 2019, Huawei will begin producing about 5 thousand base stations for 5G networks without American developments every month. In 2019, it is planned to produce 600 thousand devices, and in 2020 - up to 1.5 million.
As Will Zhang, president of corporate strategy at Huawei, explained to Reuters, equipment without American technology "is no worse," and the company was "pleasantly surprised" by this. The top manager declined to give details.
Reng Zhengfei says Huawei would still like to use American components if possible because the company has "emotional connections" with longtime American suppliers.
Huawei could sell licenses to Western rivals for its 5G communications technology to allay any doubts about the security of the Chinese company's products, he said.
Huawei is ready to provide customers with constant access to available patents, licenses, source codes, technical drawings and production know-how in the field of 5G for a one-time fee, the head of the company said.
He stressed that it should be a company from, USA since To Europe there are competitors, such as and, Nokia Ericsson who do not need assistance in this area.
| | Huawei is open to sharing its 5G technology and technical solutions with American companies so they can create their own 5G industry, said Zhen Zhengfei.[29] | |
Huawei started selling laptops on Linux due to US sanctions
In mid-September 2019, Huawei began selling laptops running Linux. The Chinese company switched to this operating system due to American sanctions, which limited its use of Windows and other technologies from the United States. Read more here.
How is the US pressed Huawei
At the end of August 2019, Huawei published accusations against the United States on its website after information appeared in the press about the alleged theft of technology by a Chinese company.
Washington is using cyberattacks on the company's internal network, threats and intimidation of former and current Huawei employees that flow into the official plane and culminate in arrests, according to a statement from Huawei. Sometimes FBI agents are used for this.
According to the Politico newspaper, citing internal Huawei documents, the US government has been actively recruiting employees to share confidential information with the authorities.
The pressure was on Huawei workers applying for an American visa. In addition, the Americans studied the contents of the phones and laptops of Huawei employees in search of incriminating information about the company when they passed passport control upon arrival in the United States. U.S. agents have also tried to impersonate former Huawei employees to gain credibility.
| | In the past few months, the US government has directed its diplomatic and political influence to lobbying for a ban on Huawei technology in other countries. Moreover, the authorities use every tool at their disposal, including legal and administrative powers, as well as many other unscrupulous means to disrupt the normal business activities of Huawei and its partners, the company said. | |
The Huawei claims that the United States instructed law enforcement agencies "to intimidate, threaten, coerce and incite both current and former Huawei employees, oppose and work for the company."
In addition, Huawei accused the United States of organizing cyber attacks on the company in order to penetrate internal systems.[30]
US steps up pressure on Huawei: 20% of the company R&D Huawei blacklisted
At the end of August 2019, it became known about new American sanctions against. Huawei More than 20% of R&D centers and innovation centers of the company were blacklisted, which means that companies USA from are prohibited from cooperating with them.
According to Nikkei, a total of 46 organizations associated with Huawei were blacklisted. At least 11 of them are key research centers of the company, located, among other things, outside the PRC. Among them are the Huawei Research Institute in Milan, the Integrated Photonics Center in, the Great Britain technology-developing research center in Chengdu and data storage the institute in, Beijing which Huawei calls the world's largest router testing center.
By the end of August 2019, almost 90 thousand employees of Huawei, or almost 45% of the total staff, were engaged in scientific research and development. In 2018, the company spent 101.5 billion yuan ($14.37 billion) or more than 14% of its annual revenue on R&D. Over 10 years, Huawei has invested over 480 billion yuan (about $67 billion) in R&D[31]
Huawei: US sanctions will deprive us of $10 billion in revenue in the Huawei market
On August 23, 2019, Huawei announced the company's approximate losses in the smartphone market due to US sanctions.
According to Huawei CEO Eric Xu at a press conference on the announcement of new chips, the revenue of the consumer division, based on mobile phones, may decrease by more than $10 billion due to restrictions imposed by the US authorities.
According to the top manager, the damage from the sanctions is likely to be less than originally expected.
By August 23, 2019, Huawei remains on the black list of the US Department of Commerce, which complicates cooperation with American partners and threatens to stop selling components and technologies developed in the United States to the Chinese company. The government planned to completely cut off Huawei from purchases of American products by August 2019, but gave a delay of another 90 days.
Eric Xu called this indulgence "meaningless" for Huawei, since, according to him, the company's employees are "completely ready" to live and work with the ban.
Huawei is actively developing its own technology to quickly reduce its dependence on foreign products. On August 23, 2019, the company introduced the Ascend 910 AI processor, which it intends to use only in its devices - without selling to third-party customers.
Ascend 910 is built on the ARM architecture - a company that earlier in 2019 refused to cooperate with Huawei. However, the Chinese manufacturer owns an indefinite ARMv8 license, which means that breaking business contacts with ARM will not affect the Ascend 910, Eric Xu assured.
Huawei said that due to US sanctions, the company can no longer interact with American chipmakers, including Cadence Design Systems and Synopsys, but the company has alternative suppliers.[32]
Huawei chief: Company on the Huawei of life and death
On August 20, 2019, Huawei founder and de facto head Ren Zhengfei sent an email to employees saying the company was "between life and death" and launching a "battle mode" to deal with the crisis.
Ren Zhengfei wrote a motivating message a day after the US administration renewed Huawei's license for 90 days to allow it to purchase equipment from US businesses.
The head of the company advised employees underutilized at their main job to rally into "special forces groups" to develop new projects. Those who cannot bring more benefit to the company can reduce their salaries every few months, or even completely dismiss.
| | If you can't get the job done, then make room for the tank. If you want to enter the battlefield, you can tie a rope around the "tank" to pull it. Everyone needs such determination!, - said Ren Zhengfei. | |
He called on staff for "worthy practical achievements." The leadership was tasked with "quickly promoting distinguished workers and breathing new life" in Huawei. The company is going through a difficult stage that it must overcome "by all means," its founder noted.
He expressed confidence that his Huawei will flourish, and American export restrictions will not cause it significant damage. The company can do without cooperation with American partners, the founder of the Chinese corporation completed.
He also believes that American sanctions only harm local developers of chips and components for Huawei equipment. At the same time, Ren Zhengfei said that the company would like to continue to purchase the technologies of the companies from, USA since this is the only way to "contribute to the overall prosperity of society."[33]
The partner refused to supply Huawei with already produced electronics for $100 million due to sanctions and paid
On July 25, 2019, it became known that the contract manufacturer electronic engineers Flex had been holding already assembled devices in its warehouses for more than a month Huawei after the announcement of Washington's sanctions against the Chinese company. More. here
Reduction of 70% of the state in the American "daughter" due to sanctions
On July 22, 2019, it announced the reduction of 70% of the number of personnel in the American research company Futurewei Technologies, which is part of Huawei. The elimination of jobs was the result of sanctions that the US authorities imposed on the Chinese manufacturer of telecommunications equipment and mobile devices. Read more here.
Trump allowed Huawei to purchase American technology, but gave incomplete amnesty
At the end of June 2019, US President Donald Trump, during a press conference following a meeting with Chinese leader Xi Jinping at the G20 summit, said that American companies will be able to continue to sell their technologies to Huawei. True, we are not talking about the complete restoration of the business of the Chinese manufacturer of smartphones and telecommunications equipment.
Donald Trump himself said that business contacts between Huawei and American business will be possible only if they do not threaten US national security.
As White House economic adviser Larry Kudlow clarified on Fox News, the Trump administration's decision will apply only to goods produced in many other countries.
The U.S. Commerce Department plans to issue additional temporary licenses for widely distributed goods, Kudlow said.
| | For example, chipmakers in the United States sell products that are available from other countries, and we do not think that there is a threat to national security, he stressed. | |
Larry Kudlow added that Huawei will remain on the list of entities of concern that are subject to severe export controls.
Commenting on Florida Sen. Marco Rubio's proposal to get all sanctions against Huawei renewed, Kudlow said he appreciated the Senate's national security concerns and once again recalled that the temporary concessions imposed by Trump are not a "universal amnesty."
According to Donald Trump, the profit of American companies from the sale of Huawei products annually amounted to tens of billions of dollars.
Trump and Xi Jinping agreed to resume trade talks between the countries. The US has pledged not to impose new tariffs on goods from China. Specific issues will be resolved during a meeting of trade and economic delegations of the two countries. [34]
American tech companies have found a way to bypass the ban on Huawei supplies
Some U.S. processor makers continue to partner with Chinese telecoms company Huawei despite a ban imposed by U.S. President Donald Trump's administration. This was reported by The New York Times building, citing knowledgeable sources[35].
According to the interlocutors of the newspaper, among these companies are Intel and Micron Technology, which over the past three weeks have continued to supply their products produced outside the United States. Companies use the fact that products made abroad are not always considered "manufactured in the United States," one of the sources explained. Bypassing the ban by American companies will help Huawei continue to assemble and sell equipment such as smartphones and servers, the NYT notes.
American companies are allowed to sell components for Huawei devices already on the market until mid-August this year, but the ban on the supply of components for new products of the Chinese company is already in effect. The interlocutors of the newspaper did not specify how much of the products supplied by Huawei are components for future developments, but, according to some estimates, the volume of transactions of American manufacturers with the Chinese company amounts to millions of dollars.
As former US Department of Commerce official Kevin Wolf explained, the ban can be circumvented if the products were produced outside the United States, and its sale does not pose a threat to the country's national security.
Promise to pay back if smartphones don't support Gmail and Facebook
On June 19, 2019, it became known that Huawei Technologies promises to return to users all the money spent on the purchase of the company's mobile devices if they cannot support the popular Google and Facebook applications.
Such a program of full compensation for purchases smartphones and tablets Huawei has been announced in the Philippines. The Chinese manufacturer is implementing this initiative together with more than 30 local partners among retailers and distributors.
According to the Philippine portal Revu, users Gmail YouTube Facebook Instagram WhatsApp will be able to expect a full refund of the purchase price within two years after purchasing Huawei gadgets if services such as,,, and do not work on these devices.
Huawei confirmed to the South China Morning Post the existence of such a program, but refrained from further comment. In particular, it is not known whether this initiative will be extended to other markets.
According to sources of the Bloomberg news agency, Huawei is preparing to reduce the supply of smartphones outside China by 40-60% in 2019 relative to 2018. Huawei founder and de facto head Ren Zhengfei confirmed on June 17, 2019 that sales of the company's phones abroad decreased by 40%. At the same time, he did not specify what timing is being compared.
Bloomberg's interlocutors say that to compensate for the decline abroad, Huawei will focus on the Chinese smartphone market and plans to occupy up to 50% of it.
Huawei is considering several options for Huawei its phone business abroad. The company intends to start selling the new Honor 20 device in the European market on June 21, 2019. Management plans to monitor the demand for the product and in case of failure will interrupt deliveries.[36]
Huawei calculated losses from US sanctions - $30 billion
On June 17, 2019, Huawei first estimated losses from US sanctions. The founder and de facto head of Huawei, Ren Zhengfei, at a meeting with reporters at the headquarters of Shenzhen, said that the Chinese manufacturer of mobile devices and telecommunications equipment would miss $30 billion in revenue over two years.
| | We did not expect the US authorities to attack Huawei so decisively. We did not expect the States to deal such a massive blow to our supply chain - not only to block the supply of components, but also access to international organizations... We cannot achieve the supply of components, we cannot participate in many international organizations, we cannot work closely with many universities, we cannot use anything with American components and we cannot even establish connections with networks that use such components, Ren Zhengfei quoted Reuters as saying. | |
Huawei completed 2018 with revenue of 721.2 billion yuan (about $104.16 billion). The company planned that in 2019 revenue will be $125 billion. However, after the conflict with the American authorities, Huawei revised its forecast - in 2019 and 2020, vendor sales will fall to $100 billion, the head said.
He admitted that the decision of the US authorities to blacklist the company would lead to a decrease in production. In the unleashed war between the company and the American government, "no one will emerge victorious," Ren Zhengfei is sure.
When asked when Huawei will be able to restore business under sanctions, the founder named 2021.
Speaking about how ready the company was for such a development of events, he drew an analogy with the aircraft.
| | We only protected the engine and the fuel tanks and we couldn't protect the other parts, "he said. | |
Ren Zhengfei stressed that Huawei intends to step up the production of its own chips, as well as look for alternative opportunities to maintain its competitive advantages both in the field of smartphones and in the 5G segment.[37]
The United States has postponed the ban on Huawei for a long time. Technology dependency is too large
The Office of Management and Budget (OMB) has determined the timing of the refusal to use Huawei technologies in the United States. With a corresponding statement, the department appealed to the US Congress. The ban, we recall, concerns American companies cooperating with the government of the country or receiving federal loans and grants from it[38] States[39] for[40].
According to Reuters, OMB postponed the entry into force of sanctions for two years - the ban will take effect from 2021. Initially, a four-year period was planned, but as a result, it was halved.
The new sanctions are directly related to the US National Defense Appropriations Act. It says that federal funds cannot be used to purchase Huawei devices for national security reasons - the US authorities are convinced that they are being used for the purpose of espionage in favor of the government and special services. China As of June 14, 2019, no evidence of this has been provided.
The two-year reprieve, according to OMB, is necessary for American companies to find new partners with whom they can cooperate and who will take Huawei's place. In other words, in the year that the said law came into force, these companies were not ready to completely abandon their partnership with Huawei.
Defective thaw
The decision of the White House Administration and Budget Office may mean for Huawei the opportunity to resolve all disputes within two years with the American side, which unleashed a trade war with China and made the company one of the main leverage. However, the "thaw" concerns not all areas of its activity, but exclusively telecommunications equipment, which US President Donald Trump (Donald Trump) also demanded from the allied states to abandon in 2018.
S&P: Sanctions against Huawei will hurt US and help China
In mid-June 2019, Standard & Poor's (S&P), an international rating agency, warned that U.S. sanctions against Huawei were more likely to hurt American suppliers than the telecom company itself.
The S&P report said the ban could push Beijing to increase investment in Chinese technology and reduce reliance on foreign suppliers. In turn, this decision could increase competition in the technology sector and potentially reduce the long-term growth prospects of American technology companies. S&P notes that the share of revenue from Huawei components from suppliers such as Micron, Qorvo and Lumentum is approximately 15%, and Qualcomm - from 5% to 10%.
As for Huawei's role in the development of 5G networks, S&P analysts believe that even if Huawei initially led, other Asian and European suppliers are catching up, so it is not yet known to what extent Huawei will realize its current advantage. If the reports are correct, operators of those countries that have sanctioned Huawei products could face higher equipment costs or delays in implementing 5G. But given the lack of value-added apps ready to use 5G, S&P believes the projected delays and price increases will be inconsequential to ratings.
Even in markets where Huawei occupies a worthy place, such as Europe and Africa, the imposed sanctions will have minimal significance, analysts say. Due to slower adoption of consumer technologies and weaker fixed mobile prospects, large-scale 5G deployment in Europe will lag behind the Asia-Pacific region and the United States, and that is, the deployment of the new network will be carried out at a restrained pace until monetized use cases appear. This approach minimizes the costs and delays associated with sanctions on Huawei equipment.[41]
Huawei stopped developing new laptops due to US sanctions
On June 10, 2019, it became known that Huawei had stopped developing new laptops, and also asked its partners to suspend deliveries of devices. This decision is related to the sanctions that the American authorities imposed on the Chinese company.
DigiTimes wrote about Huawei's temporary or possibly final withdrawal from the laptop market, citing sources in the supply chain. The company has not set a time frame for the resumption of PC development and production, since it has no alternative to processors Intel and. operating system Windows Since Huawei was blacklisted by the Ministry of Commerce, USA American companies need to obtain special permits to supply products to a Chinese vendor. By June 10, 2019, Intel Microsoft and limited cooperation with Huawei and refrain from informative comments about future deliveries.
Huawei has stopped producing both MateBook laptops and models of its Honor sub-brand (they are sold under the MagicBook brand). The company stocked up on mobile processors after US authorities restricted the business of another Chinese manufacturer, ZTE, in 2018. In the case of laptops, it was impossible to purchase chips for future use, since there was already a shortage of Intel chips on the market.
Before US sanctions, Huawei's computer business grew rapidly. At the end of 2019, the company expected an increase in equipment supplies by 277.3%, but this result will not be achieved due to a conflict with the authorities.
Huawei laptops sold well, especially in China. For example, after the release of the MateBook X Pro model in the Middle Kingdom, it was sold out in 10 minutes in the official Huawei online store, and the manufacturer earned 10 million yuan (almost $1.5 million).[42]
Intel and Qualcomm banned all communication with Huawei employees
On June 10, 2019, it became known that several large technology companies banned their employees from all communication with Huawei Technologies employees due to sanctions imposed by the American government on the Chinese manufacturer of telecommunications equipment and mobile devices.
According to the Reuters news agency, citing people familiar with the situation, all informal contacts with people working in Huawei were limited to Intel and Qualcomm, as well as the research company InterDigital Wireless and the South Korean mobile operator LG Uplus.
The publication indicates that communication between employees of technology companies is considered a very common practice during international meetings and meetings, when engineers are engaged in discussing standards for communication technologies. Huawei partners, fearing possible discontent from the American government and related problems, although Washington did not impose any restrictions on contacts of this kind.
A spokesman for LG Uplus told reporters that the company "voluntarily refrains from interacting with Huawei employees, with the exception of meetings on the installation of network equipment or maintenance."
According to industry experts, the new restrictions could slow down the construction of 5G networks. At a conference on 5G standards, which was held in Newport Beach, California, USA, in early June 2019, participants in a conversation with Reuters noted that long-standing cooperation between engineers could suffer due to the "technology war" between the United States and China.
A spokesman for an unnamed European company that introduced rules against engaging with Huawei called people involved in 5G development "appalled."
| | It can push everyone to their corners. We need to work together to get to 5G. This market should be global, - stressed the interlocutor of the agency.[43] | |
Facebook bans Huawei from installing its apps in smartphones from the factory
On June 7, 2019, it became known that the applications Facebook would cease to be pre-installed on smartphones Huawei due to the sanctions that the US authorities imposed on the Chinese company.
According to the news agency Reuters , citing representatives of Facebook, the applications will Facebook Messenger WhatsApp not Instagram be installed on Huawei devices from the factory. Owners of already released gadgets will be able to continue to use programs and receive updates for them.
The publication notes that smartphone manufacturers often conclude agreements with large companies to pre-install applications in pipes. In addition to Facebook, Huawei has such agreements with the social network Twitter and the rental service Booking.com. Whether these services plan to boycott Huawei on a par with Facebook is not reported.
Facebook has joined the list of Huawei partners who refused to cooperate with the Chinese company Huawei after its blacklist (Entity List) of the US Department of Commerce. Companies on this list cannot purchase technology from American partners without special permission.
On June 6, 2019, Nikkei, citing informed sources, reported that Huawei cut orders for the supply of components by a third after imposing sanctions. In addition, according to the interlocutors, the company lowered the projected volumes of supplies of its devices by 20-30% in the second half of 2019.
Huawei itself claims that equipment shipments remain normal - not reduced or increased.
According to analysts at Strategy Analytics, due to US sanctions, sales of Huawei smartphones in 2019 will fall by almost a quarter and amount to 156.4 million units, and in 2020 it is expected to decline by another 23%, to 120.4 million units.[44]
IEEE bans Huawei from reviewing scientific articles
Computer science professionals are concerned about how the Institute of Electrical Engineers electronic engineers and () IEEE is implementing sanctions imposed by the government USA on the IEEE Huawei[45]On May[46], 2019, the IEEE published a list of what "listed persons" (i.e., employees of Huawei and its affiliates) can and cannot be done under the auspices of the IEEE. This list made experts around the world doubt the independence of the IEEE from the American government.
"American politicians use the power of an entire nation to attack a private company"
Huawei filed a motion in May 2019 for summary proceedings in a case in which it challenges the constitutionality of section 889 of the National Defense Authorization Act of 2019. She also called on the US government to suspend the state-sanctioned campaign against Huawei, as these actions do nothing to achieve information security.
| | "Vetoing Huawei's activities by appealing to information security as an argument does not make networks more secure. On the contrary, this will create a false sense of security and distract attention from real problems. American politicians are using the power of an entire nation to attack a private company. It's not normal. History barely knows such examples. The American government has not provided any evidence that Huawei threatens security. They don't have any hard evidence, just speculation, "says Song Liuping, Huawei's legal director. | |
In its statement, Huawei points out that Section 889 of the "National Defense Powers Act" specifically singles out Huawei and prohibits US government agencies from not only buying the company's equipment and services, but also to contract or provide grants and loans to third parties, who buy the company's equipment or services - even if they have nothing to do with the American government.
| | Song Liuping also mentioned the company's inclusion in the List of Prohibited Individuals and Entities of the US Department of Commerce two weeks ago. "It sets a dangerous precedent. Today it is communication services and Huawei. Tomorrow it could be your industry, your company, your customers, "says Huawei's legal director. - Huawei is confident in the 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 Huawei documents to US to be delivered to China
On May 27, 2019, it became known that FedEx was redirecting Huawei documents to the United States, which had to be delivered to China. Read more here.
Exclusion from Wi-Fi Alliance Association
Huawei has been significantly limited in its rights to the Wi-Fi Alliance, which develops new and promotes existing Wi-Fi technology standards. Huawei has been significantly limited in its rights in the Wi-Fi Alliance, which develops new and promotes existing standards of Huawei Wi-Fi technology under [47].
The organization's official statement regarding the suspension of Huawei is: "The Wi-Fi Alliance operates in accordance with an order from the Department of Commerce. USA Huawei Technologies membership has not been canceled - the alliance has temporarily restricted its participation in the organization's actions covered by the order. " Despite the fact that the statement says about maintaining a place in the alliance for Huawei, on its official website this company did not appear in the list of participants at the time of publication of the material and was present only in the list of sponsors.
Along with the temporary termination of its activities as part of the developers of Wi-Fi standards, Huawei left, according to the Nikkei Asian Review, another organization - the Joint Electron Device Engineering Council (JEDEC).
Huawei banned from releasing smartphones with SD memory cards
On May 23, 2019, it became known about the exclusion of Huawei from the SD Association, as a result of which the company lost the right to produce computers and mobile devices with connectors for SD or microSD memory cards. Read more here.
"The American government underestimates our forces"
On the impact of US restrictions: The American government underestimates our forces.
Ren Zhengfei said: "The 90-day license does not make any sense to Huawei. We are already ready. The most important thing for us is how to do our job. What the American government is doing, we cannot control. " He noted that Huawei's inclusion in the List of Organizations of the US Department of Commerce will not greatly affect the company's work. "We will undoubtedly continue to serve our customers, we have a huge opportunity for mass production. We remain successful in competitive bidding globally. Growth rates may slow, but not as much as they suggest. In the first quarter, our operating income compared to the same period last year increased by 39%, in April there was a decrease to 25%, perhaps by the end of the year there will be a decrease again, but it will not come to negative growth. And the industry won't be affected by that.'
About processor replacement plans
Ren Zhengfei stressed that Huawei will always need American-made chips. He noted that American companies are now applying for a license from the US Bureau of Industry and Security. If the license is granted, then Huawei will continue to buy their semiconductors or sell theirs to them (you need to not only buy, but also sell to stimulate their progress). According to Ren Zhengfei Huawei he has no plans to displace the United States and is short-sighted to think only about his own development. It is necessary to ensure general development. If deliveries are eventually blocked, then nothing terrible will happen, since Huawei can produce all high-tech semiconductors on its own.
Ren Zhengfei explained that in "peacetime" Huawei always adhered to a 1 + 1 policy: it bought half of the chips from the United States, produced the other half on its own. According to him, despite the fact that its own chips are cheaper to produce, Huawei still acquired more expensive American semiconductors, since Huawei should not be removed from the outside world. On the contrary, Huawei is in favor of integration.
"Our friendship with American companies has been formed for several decades, and it cannot be broken as a piece of paper. If American companies manage to get licenses, we will continue to purchase their components in large volumes. Now the situation is incomprehensible, but we can wait. If they are given licenses, then we will continue normal trade relations with American companies and will jointly build an information society. In this case, we do not want to isolate ourselves from others. "
About 5G: 5G is not an atomic bomb, but a technology designed to serve the good of society.
According to Ren Zhengfei, the United States should not lash out at Huawei just because we took the lead, because 5G is not an atomic bomb, but a technology designed to serve the good of society.
He explained that the capacity of new generation networks is 20 times higher than that of 4G and 10,000 times higher than that of 2G, despite the fact that power consumption compared to 4G is 10 times lower, and the size of the equipment is 70% less. The 5G base station is especially compact and weighs only 20 kg, and its dimensions do not exceed the size of the portfolio for documents. Therefore, metal towers are no longer needed: equipment can be placed anywhere: on pillars and walls. Huawei equipment uses materials that are not afraid of corrosion for several decades, so it can be placed even in sewers.
In addition, 5G has a very wide channel and allows you to transmit various content in very high resolution, such as video in 8K. There is an opinion that the cost will be 10 times lower. In fact, you can achieve a 100-fold reduction so that high-definition television becomes a public service. This will contribute to the rapid development of culture. In their development, countries must rely on culture, philosophy, education. All this forms the basis of the country's development. Therefore, 5G will change society. Due to extremely low delays, new generation networks will also have widespread industrial use.
About development and specialists: Compete with Western companies for talents.
Ren Zhengfei noted that Huawei has opened 26 research and development centers around the world, which constantly employ more than 700 scientists in the field of mathematics, more than 800 in the field of physics and more than 120 in the field of chemistry. Huawei also has a strategic research center supporting the world's leading universities and scientists in their scientific activities.
Ren Zhengfei stressed that in cooperation with universities, Huawei is based on the principles of the Bei-Dole law. This means that universities benefit. All intellectual rights to dissertations and research results remain with universities and their scientists, not with Huawei. Before using these intellectual works, Huawei makes a commercial transaction with the copyright holder. This is the principle of Bay-Dole law.
Commenting on the competition with Hi-Tech companies for talented specialists, Ren Zhengfei noted that students of Novosibirsk University at the International Olympiad in computer science have been winning gold and silver medals for six years, but Google is poaching them to itself, offering salaries five to six times higher. Starting this year, Huawei will enter the fight for talent and offer conditions even better so that young specialists remain in Russia. "By supporting scientists, we do not expect instant success. Defeat is also a success. The main thing is that the team develops. That's the only way we can keep moving forward.'
On public opinion: Don't stir up nationalist sentiment
On the Chinese Internet, the level of patriotism is often judged by which phone a person uses: Apple or Huawei. However, the Huawei founder noted that all his family members use Apple phones.
Ren Zhengfei noted that society is now divided: some say that real patriots should support Huawei, others that Huawei is using the patriotism of Chinese citizens to its advantage. "We cannot assume that if someone buys Huawei, then he is a patriot, and the one who does not buy is not a patriot. Huawei is a product. Like - buy, don't like - don't buy. There's no need to tie it to politics. In no case should nationalist sentiments be inflamed. "
"My kids like Apple, for example. Apple has a good ecosystem. I myself gave them macbooks before traveling abroad. You cannot limit your consciousness to the fact that loving Huawei necessarily means loving Huawei phones, "said Ren Zhengfei.
About the appearance of the enterprise: Improve the image of the company by providing high-quality services
Ren Zhengfei said that the image should be built not by advertising, but by providing customers with high-quality services. For example, the Korean company LG has deployed LTE in the 300Mgz range on Huawei equipment. During the visit of Pope Francis, 300 thousand people on the territory of about 1.6 km2 simultaneously transmitted photos and videos through this network. And the net didn't fall.
The second example is the provision of communication during the Hajj. Before the prayer, 40-50 Muslims turn off their mobile phones, and when it is completed, they turn it back on almost simultaneously. And the Huawei network calmly withstands such a load. It is with such world examples that you need to build your image, and not only try to improve it through the media and advertising.
Huawei's investments in other countries meet the company's requests. "In England, for example, we invested in an optical chip factory. We did this mainly because England should be the export hub for these products. We have such factories in Germany and Japan. We built them based on demand, and not in order to demonstrate some status. We don't need status, we need demand for our products. "
About family: They arrested my daughter to break my will
Commenting on the arrest of his daughter Meng Wanzhou in Canada, Ren Zhengfei noted: "By this they wanted to break my will, but my daughter informed me that she was already morally ready to stay there for a long time. She has an optimistic attitude. It made it much easier for me. I have to look at the problems of this world from a position above my own consciousness, my family and Huawei. That's the only way I can be objective.'
"We all sacrificed ourselves and family for a single ideal. Now we have a conflict with the United States, but in the end we must make a joint contribution to the development of mankind. "
ARM will leave Huawei without processors for smartphones
ARM, the developer of the architecture of the same name used in the vast majority of modern processors for mobile devices, is preparing to break off its partnership with Huawei. According to the Air Force, ARM management instructed employees to completely terminate all existing contracts with the Chinese vendor[48].
The order concerns, among other things, pending agreements with both Huawei itself and all its subsidiaries. In this situation, Huawei may lose the right to use its own Kirin series processors in its smartphones and tablet computers, including the flagship Kirin 980 chip released in the fall of 2018. This is due to the fact that all Huawei processors are based on the ARM architecture - the same Kirin 980 uses ARM Cortex-A76 and Cortex-A55 along with the ARM Mali-G76 video subsystem.
Microsoft breaks all ties with Huawei
On May 21, 2019, it became known about the termination of Microsoft's cooperation with Huawei. More companies are refusing to do business with a Chinese manufacturer of mobile devices and telecommunications equipment due to US sanctions.
Journalists from The Verge noticed that the Huawei MateBook X Pro laptop disappeared from the Microsoft online store, and the search for other Huawei products in the catalog shows its absence from the Microsoft Online Store. Retail stores are Microsoft selling what's left in warehouses.
The MateBook X Pro has been recognized by many IT publications as one of the best thin and light premium laptops on the market. However, without pre-installed Windows, the computer will become significantly less attractive than competing devices from HP or Dell, according to observers at The Verge.[49]
By May 22, 2019, Microsoft had not made an official statement about the alleged severance of relations with Huawei. According to Kommersant, Microsoft is ending cooperation with Huawei in the consumer electronics and business solutions segments.
One of the sources in the telecom told the publication that on May 20, 2019, Microsoft sent letters to its missions (including Russian) notifying them of the break with Huawei. Another interlocutor of the newspaper noted that several Microsoft partners in Russia received letters and informal warnings about preparing to stop working with Huawei.[50]
In letters to its divisions, Microsoft said that all negotiations between representative offices and Huawei will have to take place with the participation of the headquarters of the American corporation.
Huawei uses Microsoft's Windows operating system in its laptops, and for b2b solutions it uses the software of the American company in servers and storage solutions, including the Huawei Cloud service.
Partners around the world abandon Huawei after the company is blacklisted in the United States
On May 19, 2019, it became known that partners refuse to cooperate with Huawei after the United States imposed sanctions on the Chinese company.
American semiconductor manufacturers Qualcomm and Qorvo have stopped supplying chips to Huawei. Suppliers from Japan and elsewhere are also breaking contracts.
The world's largest contract chipmaker TSMC said the company retains shipments of products for Huawei, but assesses the impact of the Chinese company's blacklisting in the United States. Display supplier for Huawei devices - Innolux - said that it will not do without a negative impact, but it is difficult to predict whether it will be possible to maintain the previous volume and timing of shipments of screens.
According Reuters to and, Financial Times the company Google has suspended the provision of services and technical support to Chinese Huawei. As a result, the Chinese company will lose access to Google's operating system Android built-in services, and the devices will stop receiving software updates from Google.
| | We come in line with the decree and study the consequences. Google Play and Play Protect will continue to function for our users on existing Huawei devices, a Google spokesman commented to Reuters on the widespread information about the termination of Google's business contacts with Huawei due to the decision of the US authorities to blacklist the latter. | |
Google's license does not apply to AOSP, the open source version of Android, so the following Huawei smartphones outside of China will be able to run on this version of the OS.
Huawei said that the sanctions imposed on it in the United States will not help Washington become stronger, since the restrictions will hit American consumers, not it.[51]
Trump signs executive order banning US companies from Huawei equipment
On May 15, 2019, US President Donald Trump signed a decree that introduces a state of emergency in the country to protect the national information and communication infrastructure from foreign threats and prohibits local companies from using Huawei equipment.
At the time of the decree, large American companies no longer use Huawei devices, but the innovation may affect small firms.
The executive order signed by Trump referred to the International Emergency Economic Powers Act, which gives the president the right to regulate trade in response to a state of emergency threatening the United States.
The document talks about the possibility of blocking transactions between American companies and their foreign counterparties, The Washington Post reported. In particular, we are talking about those foreign companies that Washington considers controlled by "US opponents."
The U.S. Commerce Department will put Huawei and related entities on its blacklist. The press service of the ministry noted that such a decision was made on the basis of information indicating that the company "is involved in activities contrary to national security and US foreign policy interests."
To cooperate with Huawei, American manufacturers will need a special license from the US authorities.
| | The move would prevent foreign-owned companies from using American technology to undermine U.S. national security, Commerce Secretary Wilbur Rossi said in a statement. | |
Huawei called Washington's "unreasonable restrictions" a "cavalier assault" on its rights, but expressed its willingness to maintain contact with the Huawei government to ensure product safety guarantees.
Lawsuit against US government for unconstitutional trade restrictions
Huawei on March 7, 2019 informed TAdviser about filing a lawsuit in US federal court to challenge the constitutionality of Section 889 of the National Defense Authorization Act (NDAA) of 2019. Thus, Huawei insists on issuing a declarative ruling that the restrictions directed against it are unconstitutional, and wants to achieve their indefinite injunction.
| | The US Congress has never been able to provide any evidence to support the legality of restrictions on Huawei products. We are forced to go to court as a last resort, "said Guo Ping, the current chairman of Huawei. - This restriction is not just unlawful - it does not allow us to compete on equal terms, which ultimately harms American customers. We look forward to the court's decision and believe that it will be made in favor of Huawei and the people of the United States. | |
The lawsuit was filed in U.S. District Court in Plano, Texas. According to the document, Section 889 of the National Defense Powers Act of 2019 prohibits all US government departments not only from buying Huawei equipment and services, but also from concluding contracts and providing grants and loans to third parties purchasing Huawei equipment and services, bypassing executive and judicial procedures. According to the Huawei statement, this violates the Bill of Attainder Clause (prohibiting the allocation of a particular person or group of persons to impose punishment without trial) and the Due Process Clause, as well as the principles of delineation of legislative, executive and judicial powers that underlie the US Constitution, as Congress creates the law and simultaneously attempts to sentence and enforce it.
| | Section 889 is based on a variety of false, unproven and unsubstantiated assumptions. Contrary to what is written in this legislative act, the government China does not own, control or influence the activities of Huawei. No evidence has been provided to testify against her, Song Liuping "said Song Liuping, Huawei's legal director. | |
Huawei believes that restrictions under the NDAA prevent the company from providing advanced 5G technologies to American customers, which will slow their implementation. In turn, this will impede work to improve the performance of 5G networks in the United States. In addition, netizens in rural and remote regions of the United States will be forced to choose between government funding and high-quality budget products. This, in turn, will interfere with the process of modernizing networks, as a result of which digital inequality will increase. To make matters worse, restrictions targeting Huawei stifle competition, leaving American consumers to purchase lower quality products at higher prices, the company stressed.
Industry sources estimate that if Huawei were allowed to compete, it would reduce the cost of wireless infrastructure by 15-40% and allow North American countries to save at least $20 billion in the next four years.
According to Guo Ping, Huawei is ready to answer questions from the US authorities. The lifting of restrictions will give the American government the opportunity to work freely with Huawei and solve real security problems, concluded a top manager of the company.
Official statement from Huawei in connection with US Department of Justice charges
Huawei is disappointed with the news of the allegations made against the company. After Ms. Meng's arrest, the company sought an opportunity to discuss the investigation in the eastern district of New York with the U.S. Department of Justice, however, the request was denied without explanation. The arguments made in the trade secrets indictment in the Western District of Washington were already the subject of a civil lawsuit and were settled by the parties after jurors in Seattle found no damages or intentional and malicious acts in the trade secrets lawsuit.
The company denies that it, or its subsidiary or affiliate, committed any of the alleged violations of U.S. law set forth in each of the indictments. Huawei does not have information about any wrongdoing by Ms. Meng and believes Huawei courts will ultimately reach the same conclusion.
Official U.S. charges of industrial espionage and fraud
On January 28, 2019, Huawei was formally charged by the U.S. government with industrial espionage and fraud.
According to Bloomberg news agency, citing acting US Attorney General Matthew Whitaker, the Chinese telecommunications equipment manufacturer violated the terms of an agreement with US operator T-Mobile, which was developing a robot to test its mobile phones. Huawei has created similar equipment by secretly photographing and measuring its development and even stealing part of an American robot, Whitaker said.
T-Mobile, in its lawsuit filed in 2014, said Huawei employees took possession of not only information about its characteristics, but also individual elements, as a result of which the company was able to use the stolen parts of the robot to "develop, improve and troubleshoot its own robot." Huawei itself claimed to have settled that dispute back in 2017.
In addition, according to the US Department of Justice, Huawei provided inaccurate information to the US authorities and banks about relations with its subsidiaries in order to conduct business in Iran. Huawei announced that it had left its owners due to sanctions, but remained a shadow benefactor and continued to do business, the Ministry of Justice said.
Matthew Whitaker said during a press conference that the charges were brought against the company itself, its subsidiaries Huawei Device USA and Skycom, as well as against Meng Wanzhou, Huawei's chief financial officer and the daughter of Huawei's founder. In turn, the head of the FBI Christopher Ray clarified that the charges do not relate to the leadership of the PRC.
The Chinese Foreign Ministry expressed serious concern about the allegations and called on the American authorities to stop the "baseless oppression" of Chinese companies, including Huawei, as well as to cancel the arrest warrant for Meng Wanzhou.[52]
Czech Republic will respond to China to declare Huawei equipment a threat to national security
In January 2019, Czech President Melos Zeman criticized the IT regulator's statement about Huawei's equipment threatening national security and warned of China's retaliatory measures. Read more here.
2018
Japan ditches Huawei equipment
On December 10, 2018, the main Japanese ministries and armed forces received instructions not to use personal computers, servers and telecommunications equipment manufactured by Huawei Technologies, ZTE and other Chinese companies.
The Government Commission for the Development of Cybersecurity Measures has formulated new rules for the purchase of foreign-made computer and telecommunications equipment for government agencies, as well as the Japanese Self-Defense Forces. Companies that could pose a threat to Japan's national security are excluded from suppliers. The requirements come into force in 2019 after the "training period," the Nikkei edition notes.
According to Kyodo, the Japanese government has banned Huawei and ZTE from receiving government contracts and participating in public procurement in the country. It explained its decision by concerns about the possible leakage of confidential information.
| | It is extremely important for us not to buy equipment that carries malicious functions and can be used to steal information, destroy it and disrupt information systems, "Japanese Cabinet Secretary General Yoshihide Suga said at a press conference in Tokyo, without naming the specific companies in question. | |
Japanese government agencies tend to purchase telecommunications equipment in general price-based competitive bidding, but once the new guidelines come into effect, security will also be considered.
The Chinese Embassy in Tokyo has expressed "serious concern" over reports that the Japanese government is banning government purchases of Huawei and ZTE equipment. Earlier, a number of other countries, including the United States and Australia, refused to use these products for national security reasons.[53]
US warns allies against using Huawei equipment
In November 2018, the US government appealed to the allies with a prize to abandon the use of Huawei equipment, which Washington suspects of spying for the Chinese authorities.
Relevant warnings were communicated to telecommunication operators in,, and Germany Italy Japan some other countries. The Wall Street Journal (WSJ) According to the newspaper, officials of the presidential administration USA Donald Trump are considering providing financial assistance to "friendly countries" to develop communication networks without using Chinese equipment.
Most of all, the United States is interested in the countries where their military bases are located. Although the Pentagon uses its own satellites and communications, in the case of the Internet, work often goes through local private providers.
As part of the campaign against Huawei and ZTE, the American authorities banned government agencies in the country from purchasing equipment manufactured by these vendors, and Huawei and ZTE smartphones stopped selling at American military bases. Some US ally countries, including Britain and Australia, also started boycotting the products of these companies in 2018.
According to WSJ, the United States fears that the PRC may be engaged in cyber attacks or electronic espionage using the telecommunications equipment of its companies. Also in Washington, they believe that the Celestial Empire will try to hack into networks.
Huawei and the Chinese government reject all accusations against them and insist that they comply with all cybersecurity standards in production. The company also claims that its equipment is not inferior in cyber protection to devices from Nokia or Ericsson.
Experts interviewed by the publication associate Washington's actions with the trade war and the technological race being waged with China.[54]
Australia barred Huawei from national 5G project
In July 2018, it became known that Australia did not allow Huawei Technologies to the national project for the construction of fifth-generation networks (5G). The authorities fear possible ties between the company and the government of the Celestial Empire. Read more here.
US intelligence agencies recommend Americans not to use Huawei smartphones
In February 2018, US intelligence agencies announced that they do not recommend that Americans use smartphones from Huawei and ZTE.
| | This poses risks of pressure on our telecommunications infrastructure. This also means the danger of information theft and espionage, "said FBI Director Chris Wray, explaining why you should not use Huawei and ZTE gadgets. | |
According to CNBC, both FBI CIA NSA National Intelligence fear that ZTE Huawei is working closely with the Chinese government, thereby posing a threat to US national security.
It is alleged that with the help of these smartphones, the Chinese will be able to change or steal information, as well as conduct "invisible espionage."
Possible Chinese influence on the United States is also concerned in the Senate. Thus, the head of the Intelligence Committee, Richard Burr, believes that China is trying to gain access to American technologies and intellectual property precisely through telecommunications companies.
NSA chief Michael Rogers is confident that the confrontation with Chinese companies will become more complicated in the future. According to him, the United States should "closely watch" them.
Huawei said the company's products "pose no greater cybersecurity risk than other information and communications technology vendors."
| | Huawei is aware of a number of measures by the American government apparently aimed at hindering Huawei's business in the American market, the Chinese company said in a statement. | |
In early February, two American senators proposed bills that would prohibit US government agencies from purchasing equipment from Chinese vendors, and civil servants from using Huawei and ZTE mobile phones.[55]
2012: Australia boycott Huawei
Australian officials have decided to ban Huawei from supplying equipment for the national broadband network, fearing cyber attacks emanating from China. In response, Huawei management called the ban a "regression sign," noting that the company is subject to increased requirements, given its Chinese origin. To resolve any doubts, Huawei offers to disclose all the source codes of its software and provide an opportunity to check the equipment.
InMarch 2012, the Chinese Ministry of Foreign Affairs also spoke out against the ban. "We hope that the competent Australian authorities, instead of interfering with the normal operation of Chinese companies in the name of security, will make sure that they can compete on equal terms with the rest," said Foreign Ministry spokesman Hong Lei[56].
However, Julia Gillard, Australia's prime minister, said at a press conference in March that the country's government supported banning Huawei from the project. She declined to give details on why the decision was made, citing national security concerns.
"Wemade a decision based on the interests of our country," she said. "Any suggestion that we are violating trade agreements is simply not true."
In April 2012, it was reported that China's Ministry of Commerce had expressed deep concern over the Australian government's refusal to allow Huawei to be an equipment supplier for a national broadband wireless network project. Chinese officials called the refusal "unfair." Ministry spokesman Shen Danyang stressed that the Chinese company supplies broadband equipment and support services to many countries around the world. And that in Huawei's Australian office, 90% of employees are local residents, and the company has been operating in the country for ten years and enjoys an impeccable reputation.
"China and Australia must maintain an open, constructive and cooperative dialogue so that companies in both countries can trade and invest under fair rules," the ministry said in a statement. His spokesman also recalled that China and Australia signed a bilateral agreement on investment protection.
Concerns about security threats posed by Huawei have been raised in many countries, including the United States, where the Commerce Department in 2011 banned the company from participating in a project to build a national wireless network.
Huawei has also been criticized by its biggest competitor, Cisco. It was reported that John Chambers, CEO of Cisco, said at one Wall Street Journal event that the Chinese company "does not always play by the rules" in the field of intellectual property protection and computer security. True, the head of Cisco did not give specific examples.
Notes
- ↑ Rampant speculation of blacklisted Huawei becoming China’s largest beef importer stems from an odd payment method for telecom equipment
- ↑ Huawei Is Building a Secret Network for Chips, Trade Group Warns
- ↑ China's Huawei poised to overcome US ban with return of 5G phones, research firms say
- ↑ Huawei has replaced thousands of U.S.-banned parts in its products, founder says
- ↑ U.S. stops granting export licenses for China's Huawei - sources
- ↑ Can Huawei thrive despite American sanctions?
- ↑ [https://www.interfax.ru/russia/874605 The United States has imposed a ban on the import and sale of equipment
- ↑ Huawei, ZTE and a number of other PRC companies]
- ↑ Canada to ban Huawei, ZTE 5G equipment, joining Five Eyes allies
- ↑ US President Biden signs law to ban Huawei and ZTE from receiving FCC licences
- ↑ Exclusive: Trump admin slams China's Huawei, halting shipments from Intel, others - sources
- ↑ Samsung and SK Hynix to halt memory supply to Huawei
- ↑ , England came up with a cunning plan to expel Huawei and ZTE. They will leave the country naked
- ↑ BT, Vodafone need 5 years to replace Huawei without ‘blackouts’
- ↑ [https://www.wsj.com/articles/white-house-federal-intervention-5g-huawei-china-nokia-trump-cisco-11593099054?mod=hp_lead_pos5 White House Advisers Broad Federal Intervention
- ↑ Secure 5G Future] WSJ
- ↑ learned about US plans to take over Ericsson to defeat Huawei.
- ↑ UK Tells Telcos to Stockpile Huawei Gear in Face of US Sanction
- ↑ [1]
- ↑ American companies will be able to collaborate with Huawei to develop 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 can’t sue US government over equipment ban
- ↑ House Okays $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
- ↑ US providers will receive $1 billion to abandon the hardware 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 $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? ]
- ↑ American tech companies have found a way to bypass the ban on Huawei supplies
- ↑ Huawei promises consumers in the Philippines a full refund if Gmail and Facebook won’t work on its devices
- ↑ Huawei says U.S. ban hurting more than expected, to wipe $30 billion off revenue
- ↑ [http://www.cnews.ru/news/top/2019-06-14_ssha_priznali_svoyu_zavisimost_ot_tehnologij_huawei , the United
- ↑ has postponed the ban on Huawei
- ↑ a long time. The technological dependence is too large]
- ↑ 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
- ↑ has banned Huawei from participating in peer review of scientific articles.
- ↑ 22
- ↑ siege: the company has been excommunicated from Wi-Fi
- ↑ ARM will leave Huawei without processors for smartphones
- ↑ Microsoft removes Huawei laptop from store, remains silent on potential Windows ban
- ↑ Systemic combat
- ↑ 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
- ↑ Australia will boycott Huawei
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