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TikTok + ByteDance Ban By Donald Trump Explained!

TikTok + ByteDance Ban By Donald Trump Explained!

US President Donald Trump just signed an executive order, highlighting the dangers of TikTok and ordering a ban of ByteDance, calling it a national emergency!

Find out what this new Trump ban means for TikTok users, and ByteDance!

 

TikTok Triggers ByteDance Ban

On 6 August 2020, US President Donald Trump signed an executive order, blocking everyone under US jurisdiction from transacting with TikTok owner, ByteDance Ltd.

This effectively bans the usage of TikTok in the United States and by US citizens worldwide. It also prohibits business dealings with ByteDance.

Trump called it a national emergency, citing the International Emergency Economic Powers Act, the National Emergencies Act and Section 301 of Title 3, United States Code.

His executive order claims that TikTok collects and potentially shares personal and proprietary data of American citizens with the Chinese Communist Party, while censoring content deemed sensitive to the CCP, pointing out that :

These risks are real.  The Department of Homeland Security, Transportation Security Administration, and the United States Armed Forces have already banned the use of TikTok on Federal Government phones.  The Government of India recently banned the use of TikTok and other Chinese mobile applications throughout the country; in a statement, India’s Ministry of Electronics and Information Technology asserted that they were “stealing and surreptitiously transmitting users’ data in an unauthorized manner to servers which have locations outside India.”  American companies and organizations have begun banning TikTok on their devices.  The United States must take aggressive action against the owners of TikTok to protect our national security.

 

ByteDance Ban : How Does It Affect TikTok?

Interestingly, while Trump’s executive order explicitly mentions TikTok, it doesn’t actually ban TikTok. It only bans transactions with TikTok’s owner – ByteDance and its subsidiaries.

In other words, if Microsoft buys TikTok from ByteDance, TikTok can continue to operate, as long as the deal gets done soon.

This is different from the concurrent WeChat and Tencent Holdings ban, which specifically bans both WeChat (the app) and its owner (Tencent Holdings).

Of course, targeting ByteDance and its subsidiaries will include the US-based TikTok, and forbid any financial transfers to and from those subsidiaries.

Section 1.  (a)  The following actions shall be prohibited beginning 45 days after the date of this order, to the extent permitted under applicable law: any transaction by any person, or with respect to any property, subject to the jurisdiction of the United States, with ByteDance Ltd. (a.k.a. Zìjié Tiàodòng), Beijing, China, or its subsidiaries, in which any such company has any interest, as identified by the Secretary of Commerce (Secretary) under section 1(c) of this order.

(c)  45 days after the date of this order, the Secretary shall identify the transactions subject to subsection (a) of this section.

In addition, it applies not just to American citizens worldwide but to any person or organisation within the United States.

The TikTok ban follows the WeChat ban, and similarly, does not start until 45 days later, on 20 September 2020. That suggests it’s being used as a leverage, rather than an urgent matter of national security.

Possibly to pressure ByteDance into accepting the Microsoft offer to buy them out. It could also just a way for Trump to boost his flagging chances at winning re-election.

And “coincidentally”, he signed his executive order on the same day Facebook unveiled Instagram Reels

 

TikTok Responds : We Are Shocked

TikTok responded with a statement, saying that they are shocked by the Executive Order :

We are shocked by the recent Executive Order, which was issued without any due process. For nearly a year, we have sought to engage with the US government in good faith to provide a constructive solution to the concerns that have been expressed. What we encountered instead was that the Administration paid no attention to facts, dictated terms of an agreement without going through standard legal processes, and tried to insert itself into negotiations between private businesses.

 

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WeChat + Tencent Holdings Ban By Donald Trump Explained!

US President Donald Trump just signed an executive order, ordering a ban of both WeChat and Tencent Holdings, calling it a national emergency!

Find out what this new US ban means for WeChat users, and Tencent Holdings!

 

WeChat + Tencent Holdings Ban Signed By Donald Trump

On 6 August 2020, US President Donald Trump signed an executive order, blocking everyone under US jurisdiction from using WeChat or transacting with its owner, Tencent Holdings.

This effectively bans the usage of WeChat in the United States and by US citizens worldwide. It also prohibits business dealings with Tencent Holdings.

Trump called it a national emergency, citing the International Emergency Economic Powers Act, the National Emergencies Act and Section 301 of Title 3, United States Code.

His executive order claims that WeChat collects and potentially shares personal and proprietary data of both American and Chinese citizens with the Chinese Communist Party, citing an example :

In March 2019, a researcher reportedly discovered a Chinese database containing billions of WeChat messages sent from users in not only China but also the United States, Taiwan, South Korea, and Australia. WeChat, like TikTok, also reportedly censors content that the Chinese Communist Party deems politically sensitive and may also be used for disinformation campaigns that benefit the Chinese Communist Party. These risks have led other countries, including Australia and India, to begin restricting or banning the use of WeChat. The United States must take aggressive action against the owner of WeChat to protect our national security.

 

WeChat + Tencent Holdings Ban : What Does It Mean?

The executive order is actually quite wide-ranging. It does not only ban WeChat, but also Tencent Holdings and its subsidiaries.

This could mean other apps owned by Tencent Holdings – like Valorant, League of Legends, Clash of Clans, JOOX, etc. could be affected.

We will only know more when Wilbur Ross, the US Secretary of Commerce, clarifies the ban (as stated in section 1(c) below.

Targeting Tencent Holdings and its subsidiaries will also forbid any financial transfers to and from those subsidiaries, at least within the United States.

The following actions shall be prohibited beginning 45 days after the date of this order, to the extent permitted under applicable law: any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd. (a.k.a. Téngxùn Kònggǔ Yǒuxiàn Gōngsī), Shenzhen, China, or any subsidiary of that entity, as identified by the Secretary of Commerce (Secretary) under section 1(c) of this order.

(c)  45 days after the date of this order, the Secretary shall identify the transactions subject to subsection (a) of this section.

In addition, it applies not just to American citizens worldwide but to any person or organisation within the United States.

The WeChat ban follows the TikTok ban, and similarly, does not start until 45 days later, on 20 September 2020. That suggests it’s being used as a leverage, rather than an urgent matter of national security.

This could be an effort to pressure the Chinese into agreeing to a trade deal, or a way for Trump to boost his flagging chances at winning re-election.

 

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The 4G Belongs To Four US Telcos Hoax Debunked!

Have you ever wondered who owns 4G technology? There are claims that 4G belongs to four US telcos – AT&T, Verizon, T-Mobile and Sprint, that are forcing countries like China to pay them TRILLIONS in royalties.

We take a look at that claim, and find out who REALLY owns 4G!

 

4G Belongs To AT&T, Verizon, T-Mobile + Sprint?

As the US-Chinese trade tensions drag out, lots of fake stories about both sides are circulating online.

One of them is the claim that 4G belongs to four US telcos – AT&T, Verizon, T-Mobile and Sprint, and countries like China are forced to pay them trillions of dollars every year.

4G belongs to United States’ AT&T, Verizon, T-Mobile and Sprint. The world’s countries pay more than 10,000 trillion yuan in copyright fees to the four companies in the United States. China’s 4G pays US$100 million in annual copyright fees to US companies.

If the countries around the world switch to Huawei 5G, the United States will lose more than 10,000 billion yuan of foreign exchange each year, which is set at 20% of the annual GDP of the United States.

Therefore, the United States will not allow 5G in the world.

the United States will destroy Huawei to protect the interests of the United States;

i.e. stopping the loss of at least 20% of USA’s GDP.

What a big bully !!!.

Let the world know the true & ulterior reason for USA’s insistence on bringing down Huawei.

Is that true? Let’s find out!

 

4G Does Not Belong To US Telcos

First of all, AT&T, Verizon, T-Mobile and Sprint are US telecommunications companies, telcos, that operate mobile networks in the United States.

These US telcos may own the equipment (like the cell tower above) that power those 4G LTE networks, but they do NOT own the 4G technologies those equipment were built around.

They are like any other mobile telcos around the world. They provide the 4G LTE service your mobile phones use to make calls and provide mobile Internet connectivity.

 

So Who REALLY Owns 4G?

4G technology is not owned by any particular company, but is protected by about 1,400 patents owned by a multitude of companies worldwide.

In 2011, an analyst Peter Misek crawled through all of those patents to find out who known how many of those patents, and he summarised his findings in this pie chart :

The top 3 owners of 4G patents, in order of patent numbers (not importance or value), are :

  • LG Electronics
  • Qualcomm
  • Motorola (now owned by Lenovo, although most of its patents are owned by Google)

Notice how there are no telcos in the pie chart? That’s because telcos do NOT develop mobile technologies… they don’t even make the equipment based on these mobile technologies!

 

How Much Is Paid For 4G Technology?

The other part of the claim is that the world pays about US$1,450 trillion per year in 4G licensing fees per year, with China paying US$100 million per year.

Globally

Analysts estimate that about 15-16% of a 4G smartphone’s PROFIT margin goes towards licensing fees.

In 2018, the global smartphone sales was US$522 billion, and smartphone profit margins are roughly 65% on average. That would mean about US$51 billion would have been paid in 4G licensing fees in 2018.

Obviously, US$51 billion is a tremendous amount of money, but it is far less than what the fake story claims – US$1,450 trillion.

In China

In 2017, China sold US$152.3 billion worth of smartphones. That would mean smartphones sold in China (including those made by Apple) would have contributed about US$15 billion in 4G licensing fees.

That is far more than the fake claim of US$100 million per year…

 

Who Created This 4G Belongs To US Telcos Hoax?

This is yet another piece of spurious Chinese propaganda, probably coined by China’s so-called 50 Cent Army.

Crudely-written with nonsensical numbers, it has nevertheless spread on social media, which is why we are spending the time and effort to debunk it.

Irrespective of what we may think about the Trump ban on HUAWEI and other trade war actions, we should focus on the FACTS, and not let fake stories like this sway our opinions.

 

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Forbes Is SHOCKED That HUAWEI P30 Pro Got New Colours!

Forbes just published an incredibly funny piece about the HUAWEI P30 Pro at IFA 2019!

They were SHOCKED that HUAWEI released two new colours for the P30 Pro, dramatically claiming that they were “redesigned” devices that “cleverly skirted” the Trump ban.

So drama. Cue major eye roll by every tech journalist or pundit worthy of the name. LOL!

 

The Dumbing Down Of Forbes

It is interesting how Forbes has evolved from a staid but serious business publication, into a “hip and trendy” publication that attempts to redefine creative writing as news.

They actually turned a simple report about HUAWEI coming out with two new colours for their P30 Pro smartphones into a dramatic piece of creative writing about how HUAWEI “cleverly skirted” and “circumvented” the Trump ban.

 

Forbes Is SHOCKED That HUAWEI P30 Pro Got New Colours!

Let’s take a look at how SHOCKED Forbes was about the HUAWEI P30 Pro getting new colours, and show you why they are either :

a) completely ignorant about mobile technology and the smartphone business, or
b) writing a fallacious piece for money (probably hoping it would go viral)

Either way, it’s shocking that Forbes actually published such a nonsensical piece.

Photo Credit : Forbes

Forbes Claim #1 : The New HUAWEI P30 Pro Circumvents US Ban

Forbes started with a dramatic title, claiming that what HUAWEI did circumvented the US ban.

IFA 2019: Huawei Confirms Shock New Android 10 Smartphones, Circumventing U.S. Ban

How does the new HUAWEI P30 Pro CIRCUMVENT the US ban, Forbes???

Anyone who actually bothered to read up on the Trump ban would know that the US Commerce Department issued a Temporary General Licence to HUAWEI, that was recently extended by another 90 days.

That temporary licence indubitably allows HUAWEI to ship the P30 Pro smartphones with the new Android 10 operating system.

Recommended : CONFIRMED : HUAWEI Licence Extended By 90 Days!

Forbes Claim #2 : It’s Shocking News!

After noting that HUAWEI unveiled new versions of P30 Pro with Android 10 pre-installed, Forbes stated that,

This, of course, came as shocking news knowing that the Chinese telecommunications giant is under a strict U.S. ban which bars American companies including Google, Qualcomm, Microsoft and Intel to do business with it as well as foreign companies which products contain 25% or more of U.S.-originated technologies or materials.

How is that shocking at all, Forbes???

The only shocking thing is that you appear not to be aware that HUAWEI is legally entitled to ship their P30 Pro smartphones with the latest version of Android.

The temporary licence explicitly allows American companies to “provide service and support, including software updates or patches, to existing Huawei handsets that were available to the public on or before May 16, 2019.

Recommended : The HUAWEI Trump Ban – Everything You Need To Know!

Forbes Claim #3 & #4 : It’s An Astucious WorkaroundThe New P30 Pro Is A Refresh

In the very next paragraph, they claimed it was a workaround with a really fancy word – astucious :

However, Huawei found an astucious workaround: The new P30 Pro smartphones are essentially a refresh of the devices that were initially launched in Paris earlier this spring.

REALLY? A workaround, Forbes?

Seriously, it is unquestionably NOT a workaround if they just introduced two new colours of the SAME P30 Pro smartphone!

Introducing new colours of existing smartphone models is actually a pretty common practice, as it generates (free) publicity and drive new sales.

Recommended : US Tech Companies Pressure Trump On Lifting HUAWEI Ban!

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And how is this a REFRESH, Forbes?

The only thing they did was introduce two new two-tone colour finishes for the SAME P30 Pro smartphones that you admitted launched in Paris earlier in the spring.

Think about it for a moment… If Toyota offers two new colour options for their Camry sedans a few months after launching them with five colour options, would you call that a refreshed model?

HUAWEI themselves pointed this out when they showed this slide at IFA 2019 after announcing the new Misty Lavender and Mystic Blue colour options :

As you can see, the two new colours join the existing five colour options for the HUAWEI P30 Series. They are all one, big, happy family, Forbes… ONE family, not two.

Recommended : The HUAWEI P30 Pro vs HUAWEI P30 Comparison Guide!

 

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CONFIRMED : HUAWEI Licence Extended By 90 Days!

HUAWEI gets another reprieve from the Trump Administration, with its temporary general licence extended by another 90 days!

Here is the full story, and what it means for HUAWEI and their business partners in the US and elsewhere!

 

The First HUAWEI Temporary General Licence

Just days of adding HUAWEI to the Entity List of US national security threats, the Trump Administration issues HUAWEI a 90-day temporary licence.

This partially restored their access to US technology and suppliers. It basically allows them to service and maintain their current networks and smartphones.

Establishing new networks or create new products, using technologies with more than 25% US content or origin, would require companies to apply for special licences from the US Commerce Department.

 

HUAWEI Licence Extended By 90 Days!

HUAWEI’s first temporary general licence was slated to expire today, on 19 August 2019.

But Trump had been signalling that he was open to extending HUAWEI’s licence, after he delayed new tariffs on Chinese goods until 15 December.

That was confirmed today when the US Commerce Department announced that it was extending the temporary general licence for HUAWEI, by another 90 days.

“As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption,” said Secretary of Commerce Wilbur Ross. “Simultaneously, we are constantly working at the Department to ensure that any exports to Huawei and its affiliates do not violate the terms of the Entity Listing or Temporary General License.”

This means HUAWEI will be able to continue supporting existing networks and devices up till 19 November 2019.

 

Can HUAWEI Can Launch New Devices With Licence Extension?

With the HUAWEI Mate 30 smartphones slated for launch very soon, this is a very important question – can HUAWEI launch new devices based on Android and its ecosystem?

The temporary general licence that was specifically issued to HUAWEI does not permit the use of US technologies (of more than 25% origin or content) in new HUAWEI devices without a special licence.

However, it buys HUAWEI and its business partners time to request special licences to sell their products or services to HUAWEI.

US Commerce Secretary Wilbur Ross confirmed that he received more than 50 applications last month, with more coming in.

It is actually very important for many US companies to continue to do business with HUAWEI, who spent some $11 billion on US products and services in 2018.

 

More HUAWEI Affiliates Added To Entity List

It was not all good news though. The US Commerce Department also announced that it was adding 46 additional HUAWEI affiliates to the Entity List, due to national security concerns.

 

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The HUAWEI Trump Ban – Everything You Need To Know! 5.5

Rumours have been fast spreading on instant messengers and social media about the HUAWEI Trump ban, leading to a ton of misconceptions, misunderstandings and outright BS.

In this article, we will explain the HUAWEI Trump ban, and what it means to HUAWEI and to you, the customer.

 

The HUAWEI Trump Ban Timeline Updated!

The US government’s distrust of HUAWEI goes back many years, and only grew as HUAWEI became one of China’s biggest and arguably, most visible global companies with over $100 billion in revenue and over 180,000 employees worldwide.

Circa 2010 : US intelligence officers began claiming that HUAWEI was serving as a proxy for the Chinese government

2011 : The US government squelched HUAWEI’s attempt to acquire 3Leaf Systems, a US company that offers server virtualisation solutions.

2012-10-08 : The US House Intelligence Committee released a report about its investigations into HUAWEI and ZTE, which also questioned their dealings with Iran.

2018-08-13 : US President Trump banned the use of HUAWEI and ZTE products by US government agencies.

2018-12-01 : Meng Wanzhou, HUAWEI’s global chief financial officer and the daughter of its founder, Ren Zhengfei, is arrested by Canadian authorities at the request of the United States.

Photo Credit : Darryl Dyck, The Canadian Press / PA Images

Early 2019 : The Trump government begins earnestly pressuring allies to stop using HUAWEI telecommunications equipment, particularly in building new 5G networks.

2019-05-10 : The US-Chinese trade talks failed, and President Trump immediately raised tariffs on $200 billion worth of Chinese imports.

2019-05-15 : President Trump signed an executive order barring US companies from using telecommunications equipment from sources that are “national security threats”. The US Commerce Department also added HUAWEI to the Entity List of US national security threats.

2019-05-16 : ARM issued a memo instructing their employees to suspend business with HUAWEI. Read our full report and analysis.

2019-05-19 : Google announced that it would suspend business with HUAWEI to comply with US law.

2019-05-20 : Intel, Qualcomm, Broadcom, Micron and Western Digital announce that they will stop supplying HUAWEI. German chipmaker Infineon also stopped some shipments.

2019-05-20 : The Bureau of Industry and Security of the US Commerce Department announced a 90-day temporary licence to HUAWEI, partially restoring their access to US technology and suppliers.

2019-05-21 : FedEx in Singapore and Hong Kong withheld two HUAWEI packages for “delivery exception“. Read our full report and analysis.

2019-05-23 : Two packages from Japan bound for HUAWEI in China were diverted to the FedEx HQ in the United Stataes instead. Read our full report and analysis.

2019-05-25 : The SD Association removed HUAWEI as a member, but the NM Card gives an extra workaround. Read our full report.

2019-05-26 : The WiFi Alliance temporarily suspends HUAWEI, but this only affects future Wi-Fi standards. Read our full report and analysis.

2019-05-29 : HUAWEI announced a legal challenge on the constitutionality of the HUAWEI Trump ban, but it will be too late to help them. However, China has a Trump card!

2019-05-29 : Just as quietly as HUAWEI was removed as members of the the WiFi Alliance, the SD Association and the Bluetooth SIG, its membership was restored!

Even the HUAWEI Mate 20 Pro was put back on the Android Q beta programme! Read our full report and analysis!

2019-05-29 : Malaysian Prime Minister (and the world’s OLDEST prime minister) Dr. Mahathir Mohammad said that Malaysia has no intention on shunning HUAWEI, and that they will “try to make use of their technology as much as possible“.

2019-05-29 : The Institute of Electrical and Electronics Engineers (IEEE) told its editors to stop using HUAWEI scientists and engineers to review scientific papers for fear of “severe legal implications”.

2019-06-02 : The Institute of Electrical and Electronics Engineers (IEEE) reversed their decision to ban HUAWEI scientists and engineers from reviewing scientific papers! Read our full report and analysis!

2019-06-12 : HUAWEI confirmed that they were postponing the launch of their refreshed MateBook laptop indefinitely, because they are unable to purchase the necessary components from US-based companies like Intel.

China’s Global Times reports that HUAWEI will instead launch a different laptop in July that will run Windows 10 on an ARM-based processor. Read our full report and analysis!

2019-06-14 : HONOR is moving ahead with the sale of the HONOR 20 smartphones, starting 21 June 2019. Read our full report!

At the same time, Broadcom slashed its annual revenue outlook by a whopping $2 billion, as a result of the HUAWEI Trump ban. Broadcom shares fell 6% as a result.

2019-06-17 : Microsoft starts selling HUAWEI MateBook laptops again, after removing them from the Microsoft Store when HUAWEI was added to the Entity List.

In their statement, they stated that “[Microsoft] will continue to respond to the many business, technical and regulatory complexities stemming from the recent addition of Huawei to the US Department of Commerce’s Export Administration Regulations Entity List”

2019-06-21 : FedEx refused to deliver a HUAWEI P30 Pro smartphone to a US resident, citing the HUAWEI Trump ban. Read our full report and analysis!

2019-06-22 : FedEx reversed their stance, now claiming that it was “an operational error“. Read our full report and analysis!

2019-06-23 : HUAWEI calls the repeated delivery mistakes by FedEx “a vendetta“. Read our full report!

2019-06-24 : Despite the HUAWEI Trump ban, HONOR reported that they sold their first batch of HONOR 20 smartphones in 3 hours in Malaysia, with over a million units in China in two weeks. Read our full report!

2019-06-25 : FedEx sued the Trump Administration to block trade restrictions (like the HUAWEI ban) that force it to act as enforcement agents. UPS declined to join the FedEx lawsuit.

2019-06-29 : President Trump stunned everyone by reversing the HUAWEI ban, stating that it was “no great national emergency”; and agreeing not to introduce more tariffs… all without a trade agreement with China. Read our full report and analysis!

2019-07-14 : Reuters reported that the US Commerce Department could start approving licences for US companies to start selling again to HUAWEI in a matter of weeks.

2019-07-22 : Impatient with the US Commerce Department, the CEOs of Google, Cisco, Intel, Broadcom, Micron and Western Digital pressured Donald Trump to force the US Commerce Department to issue licenses allowing them to sell to HUAWEI once again. Read our full report and analysis!

2019-08-19 : The US Commerce Department extended HUAWEI’s temporary general licence by a further 90 days. They also added 46 more HUAWEI affiliates to the Entity List. Read our full report and analysis!

 

Who Does The HUAWEI Trump Ban Affect?

The HUAWEI Trump ban covers both HUAWEI and its sub-brand, HONOR. As it so happens, HONOR is launching their HONOR 20 smartphone today.

Together with the success of their P30 and P30 Pro smartphones, the ban could not come at a worst time.

 

What Exactly Does The HUAWEI Trump Ban Do?

Many pundits wrongly quoted Trump’s executive order as the basis for the Google and other US companies suspending supplies to HUAWEI. That is only partly true.

His executive order does not mention HUAWEI at all. In fact, it actually applies to every company listed in the US Entity List, which is over 270 pages long!

It basically prohibits “any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service (transaction)” by “any person… subject to the jurisdiction of the United States” to “persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary“.

It was really the US Commerce Department’s action of adding HUAWEI (and its 68 affiliates) to the Entity List that forced US companies to stop doing business with HUAWEI.

Even without Trump’s executive order, US companies are generally prohibited from doing business with companies listed in the Entity List. They will have to apply for a licence to export products to those entities.

 

The HUAWEI Trump Ban Effects

Google

Google rescinded HUAWEI’s Android licence, as well as access to Google Play services and the Play Store. But what does that mean?

  • Current HUAWEI and HONOR devices that run on Android and were launched on, or before 16 May 2019 will continue to have access to Google Play services, and the Google Play Store..
  • HUAWEI and HONOR devices launched from 17 May 2019 onwards will not have access to Android, Google Play services, or Google Play Store.

  • HUAWEI and HONOR will continue to receive Android software updates and patches until 19 August 2019.

In other words, if you own a HUAWEI or HONOR smartphone that was launched before 16 May 2019, you have nothing to worry about… at least until August 2019.

ARM

The suspension of business between ARM and HUAWEI has no real effect in the short to medium-term, because HUAWEI can continue to manufacture existing and completed designs.

Read our full report : The HUAWEI ARM Business Suspension – How Bad Is This?

Processor Suppliers : Intel, Qualcomm, Broadcom

HUAWEI has long worked on creating their own mobile SoCs, like their flagship-class Kirin 970 and Kirin 980. They have been pretty successful in this regard – all of their top smartphones run on Kirin processors.

They do not have a replacement for the Intel processors that power their MateBook laptops. However, they have apparently prepared for this eventuality by stockpiling 3 months worth of chips.

Memory Suppliers : Micron, Infineon

Fortunately for HUAWEI, most DRAM manufacturers are not US companies, or subject to US law. Whereas Micron (a US company) can no longer supply HUAWEI with memory chips, there are other DRAM companies that can make up the shortfall… including their competitor, Samsung.

Tech Organisations : WiFi, Bluetooth, SD New!

Initially, HUAWEI was quietly but unceremoniously booted from the Wi-Fi Alliance, the Bluetooth SIG and the SD Association. But two weeks later, their memberships were quietly restored. Read our full reports :

Perplexingly, the IEEE announced and retracted their ban on HUAWEI scientists and engineers serving as peer reviewers and editors in just four days.

Read our full report : The IEEE Reverses HUAWEI Ban After Just 4 Days!

 

How Does The HUAWEI Trump Ban Affect YOU?

If you own a HUAWEI or HONOR smartphone sold on or before 16 May 2019, you have NOTHING to worry about.

  • Your HUAWEI or HONOR smartphone will continue to work normally
  • You will continue to have access to Google Play services, and the Google Play Store.
  • You will continue to receive updates and security patches

If you are planning to purchase a future HUAWEI or HONOR smartphone, you should wait and see.

  • Despite the ban, HUAWEI still has access to the Android Open Source Project (AOSP).
  • They can still produce smartphones that run on Android, but won’t be able to install Google Play services, the Google Play Store, or apps by US companies like YouTube and Facebook.
  • HUAWEI has been working on its own mobile operating system, HongMeng OS, which is said to be undergoing trials right now.
  • Future HUAWEI smartphones may run on HongMeng OS and their own slew of apps, but there will be a dearth of third-party apps, at least initially.
  • If the ban persists, HUAWEI will likely be forced to ship future smartphones with stock Android and HUAWEI apps to replace Google Play services.

 

What About New Devices?

The partial licence from the US Commerce Department only permits “service and support” for “existing” devices that were “available to the public on or before May 16, 2019“.

HUAWEI and its affiliates can create and sell new devices. However, they will not be covered by the temporary licence, and therefore…

  • they cannot have Google Play services or Play Store, or any US apps like YouTube and Instagram, installed
  • they are not entitled to Android software updates either

That said, US companies or companies that use substantial US technologies can apply to the US Commerce Department for special licences to sell to HUAWEI. As of July 2019, over 50 applications were submitted for consideration.

 

How Will This Affect HUAWEI’s Business?

This is, no doubt, a really serious problem for HUAWEI. Losing the ability to include Google services will be detrimental to the success of future devices.

The disruption of their supply chain will start to bite if the ban persists beyond three months – that’s when their stockpile runs out. They will also lose the ability to support existing customers with software patches.

However, the issuance of the temporary licence, just days after listing HUAWEI as a foreign adversary and a national security threat, signals that the HUAWEI Trump ban is just another bargaining chip in the US-China trade war.

In all likelihood, Trump is using the HUAWEI ban to force China to accept his terms for a trade deal. He badly needs a face-saving win after numerous failures in recent months.

 

Why This Is Bad For The Global Economy + Security

President Trump’s persistent pressure on HUAWEI is forcing a decoupling of the Chinese and American economies. This is bad for the global economy, as well as global security.

The intertwining of US and Chinese economies is a form of Mutually Assured Destruction (MAD) that was once guaranteed by nuclear weapons.

Photo Credit : News.com.au

But with an erratic US President cutting off supply to US products and technology essential for their companies, China will continue to turn inwards to insulate their economy, even adopting a form of economic Juche.

The more their economies decouple, the more the US loses the ability to engage China positively on a variety of geopolitical issues. In fact, it may eventually lead to an outright Cold War between the US and China, if not military confrontation.

Recommended Reading : HUAWEI Legal Motion Too Late, But China Has A Trump Card!

 

The HUAWEI Trump Ban Revision History

Updated @ 2019-08-19 : Added details about the extension of HUAWEI’s temporary general licence (full report).

Updated @ 2019-07-24 : Added details about Trump agreeing to issue licenses for US tech companies to start selling again to HUAWEI (full report).

Updated @ 2019-07-15 : Added details about the slow action by the US Commerce Department

Updated @ 2019-06-29 : Added details about Trump’s shocking reversal of the HUAWEI ban (full report).

Updated @ 2019-06-25 : Added details about the FedEx lawsuit against the Trump Administration.

Updated @ 2019-06-24 : Added details about HONOR 20 sales despite the Trump ban (full report), and FedEx’s refusal to ship a HUAWEI P30 Pro to the United States (full report).

Updated @ 2019-06-20 : Added details of the diverting of HUAWEI packages by FedEx (full report).

Updated @ 2019-06-17 : Added details of Microsoft’s decision to resume selling HUAWEI MateBook laptops.

Updated @ 2019-06-14 : Added details of the upcoming HUAWEI laptop that will run Windows 10 on ARM (full report), the upcoming sale of the HONOR 20 smartphone (full report), and the impact on Broadcom.

Updated @ 2019-06-03 : Added IEEE’s reversal of its earlier decision to ban HUAWEI employees from reviewing scientific papers (full report).

Updated @ 2019-05-31 : Added many updates, including what Malaysian Prime Minister Dr. Mahathir said about maximising the use of HUAWEI technologies. 

Updated @ 2019-05-29 : Added details of HUAWEI’s legal motion and Trump card (full report), as well as the restoration of their Bluetooth, WiFi, SD and Android Q rights (full report).

Updated @ 2019-05-26 : Added details of the HUAWEI WiFi Alliance suspension (full report)

Updated @ 2019-05-25 : Added how HUAWEI outsmarted the SD + microSD ban with their NM card (full report)

Updated @ 2019-05-23 : Added details about the HUAWEI ARM business suspension (full report)

Originally posted @ 2019-05-21

 

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US Tech Companies Pressure Trump On Lifting HUAWEI Ban!

US tech companies pressured US President Donald Trump into lifting the HUAWEI ban, after he vacillated on his decision to let them sell to HUAWEI again last month.

After a face-to-face meeting with seven of the top US tech companies, Trump agreed to facilitate the resumption of business ties with HUAWEI.

 

Lifting The HUAWEI Ban : Didn’t Trump Already Agree To It???

On 29 June 2019, Donald Trump said that “he would allow HUAWEI to once again buy US products“, calling it “no great national emergency“.

Perhaps because he foolishly revealed that he “agreed easily” to let US tech companies do business again with HUAWEI, there was a backlash by China hawks in the US government.

Credit : CNN

It even resulted in the introduction of legislation by a bipartisan group of senators to block Trump from removing HUAWEI from the trade blacklist until national security concerns have been addressed.

As a result, the lifting of the HUAWEI ban was literally put on hold.

 

Tech Meeting Agenda : Lifting The HUAWEI Ban

On Monday, 22 July 2019, the CEOs of seven top US tech companies – Google, Cisco, Intel, Broadcom, Micron and Western Digital – sat down with Donald Trump and four other key trade officials :

  • Larry Kudlow (Director of the National Economic Council),
  • Steven Mnuchin (Treasury Secretary),
  • Wilbur Ross (Commerce Secretary), and
  • Robert Lighthizer (top US trade negotiator).

Their agenda was very clear-cut – lifting the HUAWEI ban, so they can resume selling to one of their top business partners.

Broadcom, for instance, expects to lose $12 billion in sales because of the HUAWEI ban.

 

How Wilbur Ross Screwed Up The Process

US Commerce Secretary, Wilbur Ross, has come under fire recently for incompetence and lack of leadership, with a penchant to sleep during meetings.

No wonder the seven US tech companies pointedly criticised Ross for not providing “clear guidelines” on selling to HUAWEI after Trump announced that “he would allow HUAWEI to once again buy US products“.

Ross had said that licenses would be issued where there is no threat to US national security, but has not been forthcoming with the details.

It was only last week that Reuters reported that the slow bureaucracy at the US Commerce Department could start approving licences for US companies to start selling again to HUAWEI in a matter of weeks.

 

No Lifting Of HUAWEI Ban… Just Yet

It was at this meeting that they successfully pressured Donald Trump into agreeing to make “timely licensing decisions” on sales to HUAWEI.

In other words, Trump went back on his words (yet again), this time on lifting the HUAWEI ban. Chinese President Xi must be pulling his hair out in frustration!

Photo Credit : Nikkei

But this meeting with US tech giants has forced the White House into publicly agreeing to the timely licencing of sales to HUAWEI.

This lets Trump claim that he isn’t really lifting the HUAWEI ban, just allowing sales that do not contravene US national security interests.

 

A Big Win For HUAWEI

Although this is not the lifting of the HUAWEI ban that Trump initially claimed, it is still a big win for HUAWEI.

They successfully convinced the CEOs of seven top US tech companies to physically pressure Donald Trump into partially lifting the ban.

Although the mechanism for licensing sales to companies under the US Entity List already exists, there is a presumption of denial – which means, in reality, it’s virtually impossible to get those licences.

When the White House agreed to provide those licences at the meeting, what it really means is that HUAWEI will soon be able to purchase at least some of what they need from US companies.

 

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Trump Lifts HUAWEI Ban – No Great National Emergency!

US President Donald Trump not only walked back the HUAWEI ban, he now says that it’s “no great national emergency problem“.

No, it’s not an April Fool joke, although US President Trump seems to behave like it’s all a big fucking joke.

Here is the latest twist in the 4 year comedy-horror show that is the Trump Presidency.

 

Trump In May : HUAWEI Is A National Security Threat

On 15 May 2019, President Trump signed an executive order barring US companies from using telecommunications equipment from sources that are “national security threats“.

He then had the US Commerce Department add HUAWEI to the Entity List of US national security threats, basically labelling HUAWEI as a national security threat.

That barred American companies, or companies using “significant American technology”, from selling their services or products to HUAWEI.

 

Trump In June : No Great National Emergency Problem

Less than 1.5 months after declaring HUAWEI a national security threat to the United States, Donald Trump not only walked back his HUAWEI ban, he contradicted his earlier reason for the ban!

According to CNN, he said that after his meeting with Chinese President Xi Jinping on 29 June 2019, “he would allow Huawei to once again buy US products“.

US companies can sell their equipment to Huawei… there’s no great national emergency problem. – US President Donald Trump

Credit : CNN

CNN also pointed out that :

He said he “agreed easily” in his meeting with Xi to continue allowing US companies to do business with the telecom giant.

 

The Donald Is A Thoroughly Confused Idiot

Seriously? Is HUAWEI a national security threat to the United States or not?

If HUAWEI is a genuine national security threat, then it cannot be part of any trade bargain on the sidelines of the G20 summit.

But Trump has now officially lifted the HUAWEI ban and announced that there will be NO NEW TARIFFS, all without an official trade deal, which is very perplexing.

Does he know what he’s doing? Or is he just making stuff up on the spur of the moment?

One thing is for sure – The Donald is a thoroughly confused idiot.

 

The Damage Caused By The Trump Ban On HUAWEI

The HUAWEI Trump ban immediately forced many companies or organisations to immediately suspend business with HUAWEI, including :

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It led to some customer support woes for HUAWEI, some embarrassing reversals (BT, WiFi, SD, IEEE, FedEx), and some interesting ideas (Windows on ARM, rare earths) to circumvent or beat the ban…

 

Is HUAWEI Safe From Another Ban?

As if he’s trying to close the barn door after the horses have bolted, Trump hinted that HUAWEI isn’t 100% safe from his wrath.

“We mentioned Huawei,” Trump said of his talks with President Xi Jinping of China earlier Saturday. “We’ll have to save that for the very end.”

In other words, HUAWEI just scored a welcomed reprieve, but Trump will likely demand concessions during the next trade talks, or he could possibly initiate another ban…

 

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Why Futurewei, HUAWEI R&D Arm, Cut Ties With HQ!

Reuters just reported that HUAWEI’s US research and development arm, Futurewei Technologies, separated its operations from its corporate parent after the HUAWEI Trump ban kicked in.

Here is a look at what happened, and why Futurewei cut ties with HUAWEI.

 

What Is Futurewei?

Futurewei Technologies is HUAWEI’s US-based research and development company.

With offices in Silicon Valley, Seattle, Chicago and Dallas, it employs hundreds of people, and has deep ties with US universities.

Thanks to its research partnerships and grant programs with at least 50 US universities, Futurewei now has over 2,100 patents in telecommunications, 5G, video and camera technologies.

 

What Did Futurewei Do?

After HUAWEI and its 68 global affiliates were placed on the US Entity List, Futurewei moved to separate its operations from HUAWEI :

  • banning HUAWEI employees from its officers
  • moved Futurewei employees to a new IT system
  • forbidden Futurewei employees from using the HUAWEI name or logo in communications

However, Futurewei remains a fully-owned subsidiary of HUAWEI Technologies.

Recommended : The HUAWEI Trump Ban – Everything You Need To Know!

 

Why Did Futurewei Cut Ties With HUAWEI?

There are a few reasons why Futurewei cut ties with its own parent company, HUAWEI :

[adrotate group=”2″]
  1. As a US company, it is forbidden by the HUAWEI Trump ban to export technology to its own parent company. So there is no longer an advantage to maintain official ties.
  2. Most importantly, it helps Futurewei maintain research partnerships with US universities.

The University of California-Berkeley suspended funding, but allows its researchers to continue working with Futurewei employees who are US citizens or legal permanent residents.

Stanford “paused” new funding agreements with Futurewei in December 2018, but continues to work with Futurewei under existing research agreements.

Recommended : HUAWEI Legal Motion Too Late, But China Has A Trump Card!

 

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HUAWEI Calls FedEx Repeated Delivery Failures A Vendetta!

After the latest FedEx refusal to deliver a HUAWEI P30 Pro smartphone, HUAWEI finally hit back, calling it a vendetta. Here’s the latest update on the ongoing HUAWEI-FedEx saga…

 

The HUAWEI – FedEx Vendetta Claim Explained

Right after the HUAWEI Trump ban kicked off, FedEx diverted two HUAWEI packages and attempted to divert two other packages.

The first two packages were sent on May 19 and May 20 from Japan. Instead of being delivered to HUAWEI in China, FedEx diverted them to their HQ in Memphis, Tennessee, on May 23.

FedEx claimed it was an error by a 30-year old employee who sent the packages to the FedEx HQ for a “compliance audit“.

The other two packages were sent from Hanoi on May 17. Destined for HUAWEI offices in Hong Kong and Singapore, they were held up at local FedEx offices on May 21 for “delivery exception”.

Then, a few days ago, FedEx refused to deliver a HUAWEI P30 Pro smartphone to a US resident, citing the Trump ban.

They later changed their story, claiming it was an “operational mistake“, even though they had earlier confirmed they intentionally withheld and returned the smartphone because of “US GOVERNMENT ISSUE WITH HUAWEI AND CHINA GOVERNMENT

Recommended : FedEx Refused To Deliver HUAWEI P30 Due To Trump Ban!

 

HUAWEI : FedEx Has A Vendetta!

It comes as no surprise then, when HUAWEI tweeted that FedEx has a vendetta against them :

Oddly enough, they mentioned FedEx’s rival – UPS – in their tweet. It was probably a reference to UPS’ tweet that,

“There is nothing prohibiting shipping a Huawei phone from the U.K. to the U.S.”

FedEx finally adopted the same stance the next day, stating that,

“FedEx can accept and transport all Huawei products except for any shipments to listed Huawei entities on the U.S. Entity List.”

As we pointed out earlier, FedEx is only legally required not to knowingly ship technology to HUAWEI and its 68 affiliates listed on the US Entity List.

While we do not believe that FedEx actually has a vendetta against HUAWEI, their explicit refusal to ship that HUAWEI P30 Pro shows gross neglect by their management to properly address the HUAWEI Trump ban.

With not one, not two, but three delivery failures and the PR faux pas on Twitter, you have to wonder – what on Earth is going on at FedEx?

Recommended : FedEx Reverses HUAWEI Ban, Calls It “Operational Error”

 

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FedEx Reverses HUAWEI Ban, Calls It “Operational Error”

FedEx just reversed their refusal to deliver HUAWEI products based on the HUAWEI Trump ban, calling it an “operational error“.

They also clarified their policy on HUAWEI and its 68 affiliates who are on the US Entity List. Here are the full details!

 

What FedEx Ban On HUAWEI?

FedEx never officially stated its stance on the HUAWEI Trump ban, until a PCMag journalist tried to send a HUAWEI P30 smartphone to his US colleague.

It was held for a few hours in the US and then promptly returned, with the following message :

“PARCEL RETURNED BY FEDEX, DUE US GOVERNMENT ISSUE WITH HUAWEI AND CHINA GOVERNMENT”

Photo credit : Sascha Segan, PCMag

When they queried FedEx about their refusal to deliver the P30 smartphone, they received this reply,

“[O]n May 16, 2019, Huawei Technologies Co., Ltd. and 68 of its global affiliates were included on the ‘Entity List’ which sets out a list of certain entities that US companies are restricted from doing business with. My apologies for the inconvenience this has caused you.”

Followed by this subsequent response :

[T]o ensure our compliance, at this time we are not accepting any shipments to any of the listed Huawei entities.”

You can read the full story, and our assessment of this FedEx delivery ban of HUAWEI and its affiliates, in our article – FedEx Refused To Deliver HUAWEI P30 Due To Trump Ban!

Recommended : HUAWEI Outsmarts SD + microSD Ban With NM Card!

 

FedEx Reverses Stance, Calls It An Operational Error

A day later, FedEx reversed its stance, calling its earlier refusal to deliver the HUAWEI P30 smartphone an “operational error“.

“The package in question was mistakenly returned to the shipper, and we apologize for this operational error.

As a global company that moves 15 million shipments each day, we are committed to compliance with all rules and regulations and minimizing impact to our customers as we adjust our operations to comply with a dynamic US regulatory environment.”

The layperson’s translation would go something along these lines :

We finally realised we had no right to refuse the delivery, so it is now an “operational error”.

Please don’t blame us because we have to keep adjusting to US regulations that change on the whims of an unstable idiot.

Recommended : FedEx Refused To Deliver HUAWEI P30 Due To Trump Ban!

 

FedEx Clarifies Its HUAWEI Ban Policy

In our earlier article, we pointed out two salient points – the HUAWEI Trump ban is an EXPORT BAN, and PCMag is not on the US Entity List.

In other words, FedEx had no legal basis for refusing to deliver ANY HUAWEI device to any US resident.

On 23 June 2019, FedEx finally clarified its HUAWEI ban policy, stating that,

“FedEx can accept and transport all Huawei products except for any shipments to listed Huawei entities on the U.S. Entity List.”

Just as we pointed out earlier – FedEx is only legally required not to knowingly ship technology to HUAWEI and its 68 affiliates listed on the US Entity List.

This puts them on the same page as their rival, UPS, who confirmed in this earlier tweet :

“There is nothing prohibiting shipping a Huawei phone from the U.K. to the U.S.”

Finally, someone at FedEx read up on the fine print of the HUAWEI Trump ban! Congratulations!

Recommended Reading : HUAWEI Legal Motion Too Late, But China Has A Trump Card!

 

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FedEx Refused To Deliver HUAWEI P30 Due To Trump Ban!

FedEx just refused to deliver a HUAWEI P30 smartphone because of the HUAWEI Trump ban. But they picked the wrong target – PCMag.

Needless to say, this has resulted in a kerfuffle, or shall we say, covfefe?

Find out what happened, and why FedEx was totally wrong about refusing to deliver any HUAWEI smartphones because of the Trump ban.

 

FedEx Banned HUAWEI P30 Delivery Due To Trump Ban!

Sascha Segan of PCMag just reported that FedEx refused to deliver a HUAWEI P30 smartphone that his UK colleague, Adam Smith, mailed to him.

The reason? The notice on the returned parcel said, in rather bad grammar but clearly, that…

“PARCEL RETURNED BY FEDEX, DUE US GOVERNMENT ISSUE WITH HUAWEI AND CHINA GOVERNMENT”

Photo credit : Sascha Segan, PCMag

When Adam reached out to FedEx on Twitter, they replied,

“Adam, on May 16, 2019, Huawei Technologies Co., Ltd. and 68 of its global affiliates were included on the ‘Entity List’ which sets out a list of certain entities that US companies are restricted from doing business with. My apologies for the inconvenience this has caused you.”

With this subsequent response :

“Adam, it is my understanding that to ensure our compliance, at this time we are not accepting any shipments to any of the listed Huawei entities.”

HUAWEI spokeswoman Teri Daley, on the other hand, responded,

“This is a complete misinterpretation of the EO/EL” (Executive Order / Entity List).

So who is correct? FedEx or HUAWEI? First, a quick primer on what on the HUAWEI Trump ban

 

The HUAWEI Trump Ban

Many pundits wrongly quoted Trump’s executive order as the basis for the Google and other US companies suspending supplies to HUAWEI. That is only partly true.

His executive order does not mention HUAWEI at all. In fact, it actually applies to every company listed in the US Entity List, which is over 270 pages long!

It basically prohibits “any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service (transaction)” by “any person… subject to the jurisdiction of the United States” to “persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary“.

It was really the US Commerce Department’s action of adding HUAWEI (and its 68 affiliates) to the Entity List that forced US companies to stop doing business with HUAWEI.

Even without Trump’s executive order, US companies are generally prohibited from doing business with companies listed in the Entity List. They will have to apply for a licence to export products to those entities.

Recommended : HUAWEI Outsmarts SD + microSD Ban With NM Card!

 

Does The HUAWEI Trump Ban Affect FedEx?

As a US company, they are prohibited from doing business with HUAWEI or its 68 affiliates listed in the Entity List.

The Trump Executive Order, on the other hand, specifically prohibits US companies from exporting technology to HUAWEI and its affiliates.

But unless they are knowingly delivering packages containing US technology to HUAWEI or its affiliates, they have no legal exposure to the HUAWEI Trump ban.

Recommended : The HUAWEI ARM Business Suspension – How Bad Is This?

 

Why FedEx Was Wrong About The HUAWEI Trump Ban

FedEx was wrong not to deliver PCMag’s P30 smartphone for a few reasons :

Reason #1 : It Is An Export Ban

The Trump executive order only prohibits the EXPORT of technology to HUAWEI and its affiliates.

It does not prohibit anyone from importing HUAWEI smartphones into the United States. A fact their rival, UPS, confirmed in this tweet :

“There is nothing prohibiting shipping a Huawei phone from the U.K. to the U.S.”

Neither does it prohibit an existing owner of a HUAWEI smartphone from sending it to a US resident.

Reason #2 : PCMag Is Not In The Entity List

The HUAWEI P30 was sent by a third-party (PCMag), not HUAWEI. They have no legal basis to reject the delivery because PCMag is not in the Entity List.

Reason #3 : There Is A Temporary 90-Day Licence

The US Department of Commerce issued a temporary 90-day licence for the support and service of existing HUAWEI smartphones that were available on or before May 16, 2019.

The HUAWEI P30 launched in March, and is therefore covered under that 90-day licence.

Recommended Reading : FedEx Reverses HUAWEI Ban, Calls It “Operational Error”

 

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The IEEE Reverses HUAWEI Ban After Just 4 Days!

The IEEE (Institute of Electrical and Electronics Engineers) reversed their HUAWEI ban, just FOUR DAYS after announcing it. Let’s find out what the heck’s going on!

 

The IEEE Announces Its HUAWEI Ban…

On 29 May 2019, the IEEE announced their partial HUAWEI ban to comply with the HUAWEI Trump ban.

It was a perplexing move, coming almost two weeks after HUAWEI ban kicked in, and on the same day the WiFi Alliance, the SD Association and the Bluetooth SIG reversed their decisions to remove HUAWEI as members!

In their press statement announcing their partial HUAWEI ban, they clarified that HUAWEI employees are still allowed to :

  • join and participate in IEEE conferences, events and meetings
  • access the over 4.8 million papers on IEEE Xplore
  • submit technical papers for publication
  • sponsor and accept an IEEE award
  • participate in business, logistics and other meetings, including those related to conference planning

Recommended Reading : The HUAWEI ARM Business Suspension – How Bad Is This?

In addition, HUAWEI or its employees can continue to :

  • earn or exercise voting rights of membership
  • attend IEEE standards development meetings
  • submit new proposals for standards
  • participate and comment in public discussions of standards technology proposals

Recommended Reading : HUAWEI Legal Motion Too Late, But China Has A Trump Card!

However, to comply with US government regulations, they have to restrict HUAWEI and its employees from non-public activities, including :

  • peer review of submitted scientific papers
  • the IEEE editorial process

IEEE complies with U.S. government regulations which restrict the ability of the listed Huawei companies and their employees to participate in certain activities that are not generally open to the public. This includes certain aspects of the publication peer review and editorial process.

As you can see, the IEEE’s partial HUAWEI ban is really quite limited in scope… and has no real impact on HUAWEI as a company.

Recommended Reading : HUAWEI Outsmarts SD + microSD Ban With NM Card!

 

And Then Retracts Its HUAWEI Ban…

But just four days later, they announced that they were retracting their partial HUAWEI ban… claiming that they received clarification from the US Department of Commerce.

IEEE has received the requested clarification from the U.S. Department of Commerce on the applicability of these export control restrictions to IEEE’s publication activities. Based on this new information, employees of Huawei and its affiliates may participate as peer reviewers and editors in our publication process.

Based on that clarification, they announced that HUAWEI employees and its affiliates may once more participate as peer reviewers and editors in the IEEE.

One can only wonder why they did not just wait a few more days… even a week… for that Commerce Department clarification before announcing their HUAWEI ban…

Recommended Reading : HUAWEI Bluetooth + WiFi + SD + Android Q Rights Restored!

 

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HUAWEI Bluetooth + WiFi + SD + Android Q Rights Restored!

Just as quickly and quietly as HUAWEI lost their Bluetooth, WiFi and SD alliance memberships, they were restored!

They were also added back to the Android Q Beta program! Seriously, what’s going on???

 

What Happened?

It all started on 15 May 2019, when President Trump initiated the HUAWEI Trump ban. That led to Android, ARM, the WiFi Alliance, the SD Association and the Bluetooth SIG to cut ties with HUAWEI over the next few days.

You can read all about it in our full report – The HUAWEI Trump Ban – Everything You Need To Know!

 

HUAWEI Bluetooth + WiFi + SD Rights Restored!

Just as quickly and quietly as HUAWEI was removed as members of the the WiFi Alliance, the SD Association and the Bluetooth SIG, its membership was restored.

There were no press releases, no announcements, no details on why HUAWEI was removed in the first place, or why they were now restored (around 29 May 2019).

Recommended Reading : The HUAWEI ARM Business Suspension – How Bad Is This?

 

HUAWEI Back On Android Q Beta Program!

HUAWEI also found their Mate 20 Pro smartphone back on the Android Q Beta program, just as quietly as it was removed.

The restoration of the Mate 20 Pro into the Android Q Beta program is likely due to the temporary, partial licence issued by the US Commerce Department, which allows for existing HUAWEI devices to be supported with software updates.

Recommended Reading : The HUAWEI WiFi Alliance Suspension Clarified! 2.0

 

Has HUAWEI Turned The Tide?

These sudden, unexpected changes must be a welcomed reprieve for HUAWEI. And the PR value cannot be understated.

Yet there is no clarity about why the WiFi Alliance, the SD Association and the Bluetooth SIG changed their minds about being subject to the Trump ban.

Obviously, they would not have done this without some sort of dispensation or waiver by the Trump Administration. This could be an olive branch to HUAWEI, in return for some concessions from the Chinese government.

Recommended Reading : HUAWEI Outsmarts SD + microSD Ban With NM Card!

 

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HUAWEI Legal Motion Too Late, But China Has A Trump Card!

HUAWEI today struck back at the Trump ban, by challenging its constitutionality. Meanwhile, China hints at  a Trump card, pun intended…

We examine why the HUAWEI legal motion is too late to help them, but China’s Trump card may be what they need to break through the Trump ban.

 

HUAWEI Challenges Constitutionality Of The Trump Ban

On 29 May 2019, HUAWEI filed a motion for a summary judgment in its challenge that Section 889 of the 2019 National Defense Authorization Act (2019 NDAA) is unconstitutional.

In the complaint, HUAWEI argued that Section 889 of the 2019 NDAA singled out HUAWEI by name, and not only bars U.S. government agencies from buying HUAWEI equipment and services, but also bars them from, contracting with, or awarding grants or loans to third parties who buy HUAWEI equipment or services — even if there is no impact or connection to the U.S. government.

Glen Nager, HUAWEI’s lead counsel for the case, said Section 889 of the 2019 NDAA violates the Bill of Attainder, Due Process, and Vesting Clauses of the United States Constitution. Thus, the case is purely “a matter of law” as there are no facts at issue, thereby justifying the motion for a summary judgement to speed up the process.

In line with a court scheduling order, a hearing on the motion is set for 19 September 2019.

Recommended Reading : The HUAWEI P30 Pro vs HUAWEI P30 Comparison Guide!

 

The Trump Ban Will Not Deliver Cybersecurity

HUAWEI also called on the U.S. government to halt its campaign against HUAWEI, because “it will not deliver cybersecurity“.

Banning Huawei using cybersecurity as an excuse “will do nothing to make networks more secure. They provide a false sense of security, and distract attention from the real challenges we face,” said Song Liuping, Huawei’s chief legal officer.

“Politicians in the U.S. are using the strength of an entire nation to come after a private company,” Song noted. “This is not normal. Almost never seen in history.”

“The U.S. government has provided no evidence to show that Huawei is a security threat. There is no gun, no smoke. Only speculation,” Song added.

Song also addressed the addition of Huawei to the “Entity List” by the U.S. Commerce Department two weeks ago. “This sets a dangerous precedent. Today it’s telecoms and Huawei. Tomorrow it could be your industry, your company, your consumers,” he said.

“The judicial system is the last line of defense for justice. Huawei has confidence in the independence and integrity of the U.S. judicial system. We hope that mistakes in the NDAA can be corrected by the court,” Song added.

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HUAWEI Legal Motion Too Late To Help

With a hearing set for 3.5 months later, this legal challenge is frankly too late to stop the Trump ban from doing serious damage to HUAWEI.

Depending on who you believe, HUAWEI has enough components stockpiled for 3-12 months. It’s quite possible they will run out of components for at least some of their devices before the hearing even takes place!

In the meantime, the HONOR 20 and HONOR 20 Pro smartphones that just launched are stuck in limbo, because the Trump ban prohibits them from integrating Google Play services and the Play Store.

The same issue will plague all HUAWEI and HONOR devices that were originally scheduled to be launched after 15 May 2019.

Even worse, the temporary partial licence the Trump Administration issued to let HUAWEI and HONOR support their customers runs out by 19 August 2019a full month before the motion is even heard!

Until the Trump ban is lifted or vacated on constitutional grounds, those HUAWEI and HONOR smartphones have no commercial chance outside of China. They will all have to be postponed until this crisis is over…

Recommended Reading : The HUAWEI Trump Ban – Everything You Need To Know!

 

The Trump Card That Will Save HUAWEI…

What will save HUAWEI is no legal challenge… but a Trump card that the Chinese government has recently hinted at using – rare earths.

Rare earths are CRITICAL to the production of electronics, and that includes everything from smartphones to fighter jets and batteries.

China controls 90% of the world’s rare earth production, and more importantly – 80% of rare earth imports by the US. This is literally the Trump card that could force Trump to back off, and save HUAWEI.

Beijing put Washington on notice about their Trump card when both Chinese President Xi Jinping and his top economic advisor, Vice Premier Liu He, made a well-publicised visit to a rare earth factory in Jiangxi, eastern China.

If that was not obvious enough, the Chinese media (often mouthpieces of the party) made sure everyone knew that rare earths was “an ace in Beijing’s hand“, and “Don’t say you haven’t been warned“.

Even China’s economic planner, the National Development and Reform Commission, said in response to a question “Do you suggest that rare earths will become a part of China’s countermeasures against the US’s unwarranted pressure?” :

What I can tell you is that if someone wants to use our rare earths to manufacture products and use them to curb China’s development, then I’m sure the people of Ganzhou and across China will not be happy with that.”

Of course, Beijing might just be hoping that the threat of using their Trump card will be enough, because this nuclear option has its drawbacks.

Then again, Beijing has never dealt with anyone like Donald Trump… For a special person like that, perhaps a Trump card truly is necessary…

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