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Huawei to develop a 5G network in Russia
Thursday, June 6, 2019
View attachment 7652

The Chinese company Huawei and Russian largest mobile operator MTS signed an agreement on the development of 5G technologies and pilot launches of fifth-generation communication networks in Russia in 2019-2020, reports RBC news agency with a reference to a press-service of MTS.

The agreement was concluded in the Kremlin in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping.

Two companies plan to introduce 5G and IoT (Internet of Things) technologies and solutions to Russia using existing MTS infrastructure, as well as to improve the commercial LTE networks of the operator to the level of the 5G-ready, and to run the test areas and pilot of 5G networks for different types of usage, including for an infrastructure objects.

"Today, with the signing of the 5G development agreement, our partnership reached a new level — we are not simply advancing the strategic cooperation between the two companies in the area of high technologies, <...> but we also contribute to the further development of trade and economic relations between Russia and China," said the head of MTS company Alexey Kornya.

Huawei CEO in Eurasia Aiden Wu said that the Chinese company has already received more than 16 thousand patents in the field of 5G mobile network and this makes the company the world leader in this technology.

Two weeks ago, on May 22, Russian National Company Rostec proposed to involve foreign companies to develop a 5G network in Russia. The National Center for Information Technology (NCIT) which is Rostec's subsidiary corporation, has formulated a development plan, which affirmed the need to cooperate with ZTE, Cisco and other foreign companies to develop the mobile technologies.

VimpelCom (Beeline) will also develop 5G in Russia in cooperation with Huawei. MegaFon has also signed a memorandum on strategic partnership in the development of 5G networks with Nokia.

 

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Facebook suspends app pre-installs on Huawei phones
08 June 2019
View attachment 7675
Customers who already have Huawei phones will still be able to use its apps and receive updates, Facebook said.

Facebook Inc is no longer allowing pre-installation of its apps on Huawei phones, the latest blow for the Chinese tech giant as it struggles to keep its business afloat in the face of a US ban on its purchase of American parts and software.

Customers who already have Huawei phones will still be able to use its apps and receive updates, Facebook told Reuters. But new Huawei phones will no lo
Smartphone vendors often enter business deals to pre-install popular apps such as Facebook. Apps including Twitter and Booking.com also come pre-installed on Huawei phones in many markets. Twitter Inc declined to comment and Booking Holdings did not respond to a request.

The move by Facebook dampens the sales outlook for Huawei Technologies Co Ltd, whose smartphone business became its biggest revenue generator last year, powered by strong growth in Europe and Asia.

Huawei declined to comment.

Alphabet Inc's Google said earlier that it would no longer provide Android software for Huawei phones after a 90-day reprieve granted by the US government expires in August. But Google's Playstore and all Google apps will still be available for current models of Huawei phones including those which have not yet shipped or even been built.

The Facebook ban, by contrast, applies to any Huawei phone that has not yet left the factory, according to a person familiar with the matter. Facebook declined to comment on when the suspension took place.

In May, Washington banned US companies from supplying technology to Huawei, part of a long-running campaign against the company. The United States alleges that

Huawei is too close to the Chinese government and that its telecom network gear and other products could be a conduit for espionage, which Huawei denies.

Buyers of current Huawei phone models that do not have Facebook pre-installed would still be able to download it from the Google Playstore. Future versions of Huawei phones, however, will not have access to the Google Playstore and its apps unless the US government changes course.

Huawei has said it was prepared for the US action and vowed to work around any disruptions. But some customers at stores in Europe and Asia have told Reuters that they are reluctant to buy Huawei phones in the face of uncertainties, and analysts expect a dramatic drop in Huawei smartphone sales.
 

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Europe's 5G to cost $62B more if Chinese vendors banned
Reuters
June 7, 2019
View attachment 7677
Estimate part of report by telecoms lobby group GSMA, which represents interests of 750 mobile operators

A ban on buying telecoms equipment from Chinese firms would add about 55 billion euros ($62 billion) to the cost of 5G networks in Europe and delay the technology by about 18 months, according to an industry analysis seen by Reuters.

The United States added Huawei Technologies, the world's biggest telecoms equipment maker, to a trade blacklist in May, prompting global tech giants to cut ties with the Chinese company and putting pressure on European countries to follow suit.

Washington alleges Huawei's equipment can be used by Beijing for spying, something the company has repeatedly denied. The move by US President Donald Trump's administration comes as telecoms operators worldwide are gearing up for the arrival of the next generation of mobile technology, or 5G, which promises ultra-fast mobile Internet for those able to make the heavy investment needed in networks and equipment.

The estimate is part of a report by telecoms lobby group GSMA, which represents the interests of 750 mobile operators.

GSMA has already voiced concerns about the consequences of a full ban on Huawei, whose products are widely purchased and used by operators in Europe. Huawei is one of the key supporters of the lobby group, several industry sources said. The 55 billion euro estimate reflects the total additional costs implied by a full ban on purchases from Huawei and Chinese peer ZTE for the roll out of 5G networks in Europe.

The two Chinese vendors have a combined market share in the EU of more than 40 per cent.
"Half of this [additional cost] would be due to European operators being impacted by higher input costs following significant loss of competition in the mobile equipment market," the report said. "Additionally, operators would need to replace existing infrastructure before implementing 5G upgrades."

Finnish telecoms equipment maker Nokia pointed out that was not true.
"We offer a technical solution whereby we can overlay our 5G equipment on top of another vendor's 4G gear. This solution could reduce the cost and complexity of vendor changes," spokesman Eric Mangan said. Nokia said this week it had moved ahead of Huawei in total 5G orders and had seen increased interest in its 5G offering from European countries that have been debating the role of Chinese vendors in their networks.

According to the report, a ban would also delay the deployment by 18 months of 5G technology, which will be used in areas ranging from self-driving cars to health and logistics.
"Such a delay would widen the gap in 5G penetration between the EU and the US by more than 15 percentage points by 2025," according to the report.

This delay would result from delivery challenges for other major equipment makers, such as Ericsson, Nokia and Samsung, in the event of a sudden surge in demand.

It would also follow from the need for telecoms operators to transition from one set of equipment to another.

 

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Putin stands by China, criticizes U.S., in trade, Huawei disputes
08 June, 2019
by Andrey Ostroukh, Katya Golubkova

View attachment 7690

ST PETERSBURG (Reuters) - Aggressive U.S. tactics such as a campaign against Chinese telecoms firm Huawei will lead to trade wars - and possibly real wars - Russian President Vladimir Putin said on Friday, in a show of solidarity with China alongside its leader Xi Jinping.

In some of his strongest words on the subject, Putin accused Washington of “unbridled economic egoism”. He singled out U.S. efforts to thwart a Russian gas pipeline to Europe and a U.S. campaign to persuade countries to bar Huawei, the world’s biggest telecoms equipment maker, from supplying network gear.

His broadside, at an economic forum in St Petersburg on the same platform as Xi, was a clear show of unity with China at a time when Beijing is locked in a trade war with Washington and Moscow’s own ties with the West are at a post-Cold War low.

“States which previously promoted free trade with honest and open competition have started speaking the language of trade wars and sanctions, of open economic raiding using arm-twisting and scare tactics, of eliminating competitors using so-called non-market methods,” said Putin.

“Look for example at the situation around Huawei which they are trying not to just squeeze out, but to unceremoniously push out of the global market. It’s already being called the first technological war of the emerging digital era in some circles.”

The world risked slipping into an era when “general international rules will be exchanged for the laws of administrative and legal mechanisms ... which is how the United States is unfortunately behaving, spreading its jurisdiction over the whole world,” added Putin.

“...It’s a path to endless conflicts, trade wars and maybe not just trade wars. Figuratively speaking, it’s a path to battles without rules that pit everyone against everyone else.”

Putin also complained about the U.S. dollar, calling it an instrument of pressure whose role in the financial system should be reconsidered.

China’s Xi struck a more conciliatory tone, calling for world powers to protect the global multilateral trade system. Speaking through an interpreter, he said it was “hard to imagine a complete break” between the United States and China.

“We are not interested in this, and our American partners are not interested in this. President Trump is my friend and I am convinced he is also not interested in this,” Xi said.

Russia has long complained about Western sanctions imposed on it over disputes including its behavior in Ukraine. Moscow casts the restrictions as an attempt to contain its growth.

Washington has asked countries to reject Huawei technology in the development of new mobile phone networks, arguing that it could be vulnerable to Chinese eavesdropping. Huawei denies its equipment is a security risk.

Additional reporting by Vladimir Soldatkin, Anastasia Lyrchikova, Tom Balmforth, Polina Ivanova, Olesya Astakhova, Daria Korsunskaya; Writing by Andrew Osborn; Editing by Peter Graff

 

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Huawei gets 46 commercial 5G contracts in 30 countries
08 June 2019
View attachment 7735
The telecom giant said it was well prepared for China's 5G commercial use.

Chinese telecom giant Huawei Technologies Co. Ltd. said it has obtained 46 commercial 5G contracts so far in 30 countries.

It has shipped more than 100,000 5G base stations, ranking top in the world, according to the company.

Huawei said it was well prepared for China's 5G commercial use. In February 2018, it made the world's first 5G call and launched the first 5G terminal device, Xinhua news
agency reported.

Headquartered in the southern Chinese city of Shenzhen, privately-owned Huawei is a world leading telecommunication solution provider and also one of the world's major smartphone brands.

China's Ministry of Industry and Information Technology granted commercial -use 5G licenses on Thursday to China Broadcasting Network and the country's top three telecom operators - China Telecom, China Mobile and China Unicom.

 

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China grants first 5G licenses amid Huawei global setback
06 June 2019
7742

Image Credits: Photo by Zhang Peng/LightRocket via Getty Images


It’s official. After much anticipation, China named the first companies to receive 5G licenses for commercial use on Thursday.

The announcement from the Ministry of Industry and Information Technology, the country’s telecoms authority, came as Huawei, the Chinese company that captured nearly 30% of the world’s telecom gear revenues in 2018, faces mounting scrutiny in the west over potential security concerns.

The greenlight arrived months ahead of the long-expected due date for China’s 5G licenses, which was said to be late 2019. The acceleration clearly demonstrates Beijing’s ambition to race ahead in the global 5G industry where the United States and South Korea already had a head start in commercial deployment.

The MIIT approved three network operators — China Telecom, China Mobile, China Unicom — and cable network company China Broadcasting Network to run the next-gen cellular connectivity.

Other players in 5G, including network equipment makers, smartphone manufacturers, chip makers and apps creators, are also gearing up. Over the last few months, Samsung, Oppo, Xiaomi and Huawei have each announced plans to bring 5G into their handsets.

In the meantime, internet giant Tencent has been quietly testing cloud-based games with Intel, and Netflix-like iQiyi has joined hands with China Unicom to make virtual reality products, representing just two of the many applications that rely on 5G-enabled low latency and higher bandwidth to work.

 

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The unintended consequences of Trump’s ban on Huawei are starting to appear
By John Detrixhe
June 8, 2019

View attachment 7757
What doesn’t kill you makes you stronger.

The US crackdown on Huawei was bound to have unintended consequences. Some of them are starting to come to the surface.

The Trump administration is looking to shut out the Chinese telecom company from selling its technology in the US, as well as banning American firms from selling products to the company. Now Google, which banned Huawei from updates of its ubiquitous Android operating system, is warning that the restriction could become a national security issue, according to the Financial Times (paywall). That’s because Huawei, the world’s No. 2 handset maker, will likely move quickly to develop its own parallel version of Android, which could have more software bugs and be more susceptible to hacking.

That’s just one of many potential consequences as the US clampdown ripples through everything from semiconductor supplies to ambitions for self-driving cars. The American government blacklisted Huawei for long-simmering espionage concerns after trade talks between the world’s two largest economies broke down. The Trump administration has since given companies a 90-day window to adjust to the new restrictions.

In the meantime, chipmakers including Qualcomm, Intel, and Xilinx are reportedly halting sales of technology (paywall) to Huawei. The embattled Chinese company has responded by stockpiling chips and components and ramping up its development of alternatives.

Facebook, which has more than 2 billion users around the world, will no longer allow its app to come preinstalled on Huawei phones, according to Reuters. Huawei phone buyers can still download the app from the Google Play store for now, but that option will go away if Google’s relationship with the Chinese company is severed.

These actions add to the potential fallout for American companies to reckon with. US tech enterprises will lose out on sales to Huawei, and the ban could also slow the implementation of new technologies around the world. The rollout of self-driving cars, for instance, may get a boost from 5G gear, and Huawei appears to be the only supplier that can provide reliable 5G kit widely and at low cost. Restrictions could boomerang back on Google and Facebook, which count on their apps being widely installed around the world to collect data and sell advertising against. And then there’s the potential for damaging retaliation by China, which could blacklist important US companies like Apple that do business there.

And if the crackdown lasts (an important if—some expect the Huawei restrictions to be lifted should a trade deal be reached) and the Chinese telecom comes out intact, it could emerge even stronger, having been forced to develop new technology in-house. If the American blacklist fails to strangle Huawei, it could come out stronger and more innovative than it was before.

 

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The unintended consequences of Trump’s ban on Huawei are starting to appear
By John Detrixhe
June 8, 2019

View attachment 7757
What doesn’t kill you makes you stronger.

The US crackdown on Huawei was bound to have unintended consequences. Some of them are starting to come to the surface.

The Trump administration is looking to shut out the Chinese telecom company from selling its technology in the US, as well as banning American firms from selling products to the company. Now Google, which banned Huawei from updates of its ubiquitous Android operating system, is warning that the restriction could become a national security issue, according to the Financial Times (paywall). That’s because Huawei, the world’s No. 2 handset maker, will likely move quickly to develop its own parallel version of Android, which could have more software bugs and be more susceptible to hacking.

That’s just one of many potential consequences as the US clampdown ripples through everything from semiconductor supplies to ambitions for self-driving cars. The American government blacklisted Huawei for long-simmering espionage concerns after trade talks between the world’s two largest economies broke down. The Trump administration has since given companies a 90-day window to adjust to the new restrictions.

In the meantime, chipmakers including Qualcomm, Intel, and Xilinx are reportedly halting sales of technology (paywall) to Huawei. The embattled Chinese company has responded by stockpiling chips and components and ramping up its development of alternatives.

Facebook, which has more than 2 billion users around the world, will no longer allow its app to come preinstalled on Huawei phones, according to Reuters. Huawei phone buyers can still download the app from the Google Play store for now, but that option will go away if Google’s relationship with the Chinese company is severed.

These actions add to the potential fallout for American companies to reckon with. US tech enterprises will lose out on sales to Huawei, and the ban could also slow the implementation of new technologies around the world. The rollout of self-driving cars, for instance, may get a boost from 5G gear, and Huawei appears to be the only supplier that can provide reliable 5G kit widely and at low cost. Restrictions could boomerang back on Google and Facebook, which count on their apps being widely installed around the world to collect data and sell advertising against. And then there’s the potential for damaging retaliation by China, which could blacklist important US companies like Apple that do business there.

And if the crackdown lasts (an important if—some expect the Huawei restrictions to be lifted should a trade deal be reached) and the Chinese telecom comes out intact, it could emerge even stronger, having been forced to develop new technology in-house. If the American blacklist fails to strangle Huawei, it could come out stronger and more innovative than it was before.

 

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Russia says it intercepted U.S., Swedish aircraft over Baltic Sea
June 12, 2019
By Ed Adamczyk

View attachment 7950
A Russian Su-27, similar to the fighter plane depicted, intercepted Swedish and U.S. reconnaissance planes over the Baltic Sea on Tuesday, the Russian Defense Ministry said. {link:photo by Dmitry Pichugin: "Aviation Photo #1014282: Sukhoi Su-27SKM - Russia - Air Force"/Airliners.net/Wikimedia

June 12 (UPI) -- A Russian fighter plane intercepted U.S. and Swedish reconnaissance planes over the Baltic Sea near the Russian border, the Russian Defense Ministry said.

The Russian Su-27 plane took off to intercept the planes, which the ministry identified as a U.S. RC-135 and a Swedish Gulfstream jet, each a reconnaissance aircraft. The Russian plane then escorted the two planes away from the Russian border.

The incident came Tuesday as NATO conducts the BALTOPS 2019 exercise. About 36 aircraft, 50 surface ships and two submarines from 18 NATO countries are participating in the 12-day military exercise, which began on Sunday.

"On June 10, the Russian airspace control services over the neutral waters of the Baltic Sea detected two air targets approaching Russia's state border. A Su-27 fighter jet of the Baltic Fleet's Air Defense Forces was scrambled to intercept the targets," a ministry statement said. "The Su-27 pilot reported on the identification of foreign reconnaissance aircraft and accompanied them, preventing violations of the Russian airspace borders in compliance with all necessary security measures."

The ministry released a video of what it said was the intercept.


An unnamed U.S. military official confirmed the incident but said the action was safe and professional.

On Monday, the United States formally delivered a diplomatic protest, called a demarche, to the Russian government over a near collision last week between a Russian warship and a U.S. Navy ship in the Philippine Sea.

The demarche was delivered to the Russian Ministry of Foreign Affairs by the chargé d'affaires in the U.S. embassy in Moscow, with a similar message delivered to the Russian Foreign Ministry.

 

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Russia offers China operating system for Huawei
June 12, 2019

View attachment 7953

Russian officials have suggested that the Chinese cellphone company Huawei replace Google’s Android OS with the Aurora OS developed in Russia, reports the Bell citing two informed sources.

The idea was brought up shortly before the start of the St. Petersburg International Economic Forum in a meeting between Huawei Chief Executive Director Guo Ping and Russian Minister of Digital Development and Communications Konstantin Noskov, and was later discussed at meetings between Vladimir Putin and Xi Jinping.

The Russian OS, based on the Finnish Sailfish OS, could be installed on Huawei devices instead of Google’s Android, which the Chinese company lost access to after it was blacklisted by the US Department of Commerce.

“China is already testing devices with preinstalled Aurora,” claimed one of The Bell’s sources.

In addition, Huawei has been invited to localize part of its production in Russia, including the production of chips and software.

This is about more than just installing a Russian OS, it is about the entire ecosystem based on Aurora, said a source familiar with the details of the meeting between Noskov and Guo Ping. It includes social networks, search engines and antivirus programs, he noted.

The Russian Ministry of Digital Development and Communications could neither confirm nor deny this information, noting only that effort is constantly being made to promote Russian producers on foreign markets. Huawei also declined to comment. Rostelecom, which owns Aurora, had not heard about the Huawei initiative, but said that it is “willing to collaborate with all developers of mobile solutions”.


 

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Bans on Huawei will hit tech harder than telecom
June 16, 2019
View attachment 8180
PARIS — S&P Global Ratings said Sunday that potential restrictions on equipment manufactured by China-based Huawei Investment & Holding Co. Ltd.

(not rated) could have wide-ranging impacts on the industry worldwide, but that it hasn't taken

any rating actions for now on the companies it rates in the sector.

As part of broader trade discussions underway between the US and China, we expect further

developments. The ultimate scope and duration, and therefore the impact, of any bans are not yet

certain. While the ban on China-based ZTE Corp. last year lasted four weeks, it may not be

indicative of the outcome for Huawei.

"Currently, we view the short-term risks to tech as more prominent than for telecom companies

given the more direct and near-term revenue impact on suppliers to Huawei," said S&P Global

Ratings credit analyst Mark Habib, in a report published today, "Bans On Huawei Will Hit Tech

Harder Than Telecom, But Not Enough To Move The Ratings."

The supply ban, in our view, will also serve as a catalyst for Huawei, and the Chinese

Administration, to accelerate their technology investment to reduce reliance on foreign suppliers

for critical components. In turn, this could heighten competition in the technology sector and

potentially lower the long-term growth prospects of US technology firms.

"The consequences for telecom are likely to vary from country to country and largely relate to

longer-term 5G investment decisions, which give operators more time and options for managing

the fallout," Habib said.

But with China aiming for market leadership in 5G deployment, the stakes are high. Leadership in

an enabling platform like 5G can help define and shape the evolution of the global technology

landscape beyond the existing supply chains and capital spending on telecom equipment. We view

the ability to achieve market leadership in 5G deployment to be a key success factor to a vibrant

economic environment for countries and regions. It provides opportunities and financial incentives

to develop business and consumer use cases that can increase the global competitiveness of

telecom and technology companies, as well as the industries they support.

As history has shown, successful US deployment of the first 4G networks in the early 2000s

offered a platform for accelerated innovation, continued investment, and sustained leadership

positions for many US technology firms. Examples include Apple's success in smartphones and

tablets, Google's achievement in advertising through development of its ubiquitous Android

mobile operating systems including its Google Chrome browsers, and Qualcomm's patents in

wireless mobile phone designs and mobile baseband chips. The same was true of Europe's 2G

adoption in the early 1990s and Japan's 3G adoption in the early 2000s.

If history is any guide, we believe the leaders in 5G adoption will have an edge in the development

of the next wave of technology innovations such as cloud computing, the internet of things, and

autonomous vehicles. It's too early to tell if restrictions will slow China's 5G ambitions, or backfire

and leave countries like the US behind. Much will depend on how badly Huawei is constrained

and how ready competing equipment makers are to take the lead.

"Though we believe the short-term consequences for technology and telecom companies are

manageable, the long-term stakes, particularly for tech, could be decisive," Habib said. — SG


 

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Huawei founder says revenue will be billions below forecast
an hour ago
17 June 2019

View attachment 8184
Huawei founder Ren Zhengfei speaks at a roundtable at the telecom giant's headquarters in Shenzhen in southern China on Monday, June 17, 2019. Huawei's founder has likened his company to a badly damaged plane and says revenues will be $30 billion less than forecast over the next two years. (AP Photo/Dake Kang)

SHENZHEN, China (AP) — Huawei’s founder likened his company to a badly damaged plane Monday and said revenues will be $30 billion less than forecast over the next two years.

The Chinese telecom giant will reduce capacity but U.S. moves to restrict its business “will not stop us,” Ren Zhengfei, who is also the CEO, said on a panel at company headquarters.

He said the company expected revenues of about $100 billion annually for the next two years, compared to $105 billion in 2018. In February, he said the company was targeting $125 billion in 2019.

In May, the U.S. has put Huawei on a blacklist, meaning that American companies that want to sell parts to Huawei will need approval from the U.S. Commerce Department.

U.S. officials have accused Chinese technology companies such as Huawei of stealing trade secrets and threatening cybersecurity — possibly at the behest of the ruling Communist Party.

The action comes as Huawei and competitors prepare to launch next generation 5G mobile networks.

Ren said there are no backdoors in its equipment that anyone could access, and that Huawei is willing to enter into a no backdoor agreement with any nation that wants one.

He said it never occurred to Huawei that the American government would be so determined to take such a wide range of what he called extreme measures against the company.

“I think both sides will suffer,” he said. “No one will win.”

 

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Huawei founder says revenue will be billions below forecast
an hour ago
17 June 2019

View attachment 8184
Huawei founder Ren Zhengfei speaks at a roundtable at the telecom giant's headquarters in Shenzhen in southern China on Monday, June 17, 2019. Huawei's founder has likened his company to a badly damaged plane and says revenues will be $30 billion less than forecast over the next two years. (AP Photo/Dake Kang)

SHENZHEN, China (AP) — Huawei’s founder likened his company to a badly damaged plane Monday and said revenues will be $30 billion less than forecast over the next two years.

The Chinese telecom giant will reduce capacity but U.S. moves to restrict its business “will not stop us,” Ren Zhengfei, who is also the CEO, said on a panel at company headquarters.

He said the company expected revenues of about $100 billion annually for the next two years, compared to $105 billion in 2018. In February, he said the company was targeting $125 billion in 2019.

In May, the U.S. has put Huawei on a blacklist, meaning that American companies that want to sell parts to Huawei will need approval from the U.S. Commerce Department.

U.S. officials have accused Chinese technology companies such as Huawei of stealing trade secrets and threatening cybersecurity — possibly at the behest of the ruling Communist Party.

The action comes as Huawei and competitors prepare to launch next generation 5G mobile networks.

Ren said there are no backdoors in its equipment that anyone could access, and that Huawei is willing to enter into a no backdoor agreement with any nation that wants one.

He said it never occurred to Huawei that the American government would be so determined to take such a wide range of what he called extreme measures against the company.

“I think both sides will suffer,” he said. “No one will win.”

 

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Huawei says U.S. ban hurting more than expected, to wipe $30 billion off revenue
Sijia Jiang
June 17, 2019 - Updated an hour ago

View attachment 8209
HONG KONG (Reuters) - China’s Huawei Technologies Co Ltd has taken a harder-than-expected hit from a U.S. ban, the company’s founder and CEO Ren Zhengfei said, and slashed revenue expectations for the year.

Ren’s downbeat assessment that the ban will hit revenue by $30 billion, the first time Huawei has quantified the impact of the U.S. action, comes as a surprise after weeks of defiant comments from company executives who maintained Huawei was technologically self-sufficient.

The United States has put Huawei on an export blacklist citing national security issues, barring U.S. suppliers from selling to the world’s largest telecommunications equipment maker and No.2 maker of smartphones, without special approval.

The firm has denied its products pose a security threat.

The ban has forced companies, including Alphabet Inc’s Google and British chip designer ARM to limit or cease their relationships with the Chinese company.

Huawei had not expected that U.S. determination to “crack” the company would be “so strong and so pervasive”, Ren said, speaking at the company’s Shenzhen headquarters on Monday.

Two U.S. tech experts, George Gilder and Nicholas Negroponte, also joined the session.
“We did not expect they would attack us on so many aspects,” Ren said, adding he expects a revival in business in 2021.

“We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish connection with networks that use such components.”

Huawei, which turned in a revenue of 721.2 billion yuan ($104 billion) last year, expects revenue of around $100 billion this year and the next, Ren said. This compares to an initial target for a growth in 2019 to between $125 billion and $130 billion depending on foreign exchange fluctuations.


TRADE WAR
The Trump administration slapped sanctions on Huawei at a time when U.S.-China trade talks hit rough waters, prompting assertions from China’s leaders about the country’s progress in achieving self-sufficiency in the key semiconductor business.

Huawei has also said it could roll out its Hongmeng operating system (OS), which is being tested, within nine months if needed, as its phones face being cut off from updates of Google’s Android OS in the wake of the ban.

But industry insiders have remained skeptical that Chinese chip makers can quickly meet the challenge of supplying Huawei’s needs and those of other domestic technology firms.

Negroponte, founder of the Massachusetts Institute of Technology Media Lab, said the U.S. ban was a mistake.
“Our president has already said publicly that he would reconsider Huawei if we can make a trade deal. So clearly that is not about national security,” he said.

“It is about something else,” Negroponte added.

Huawei’s smartphone sales have, however, been hit by the uncertainty. Ren said the firm’s international smartphone shipments plunged 40%. While he did not give the time period, a spokesman clarified the CEO was referring to the past month.

Bloomberg reported on Sunday that Huawei was preparing for a 40-60% drop in international smartphone shipments.

The CEO, however, said Huawei will not cut research and development spending despite the expected hit from the ban to the company’s finances and would not have large-scale layoffs.

($1 = 6.9239 Chinese yuan)

Reporting by Sijia Jiang in Hong Kong and Brenda Goh in Shanghai; Writing by Sayantani Ghosh; Editing by Himani Sarkar and Muralikumar Anantharaman


 

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Senator Rubio targets Huawei over patents
June 18, 2019 - Updated 2 hours ago

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Senator Marco Rubio

WASHINGTON (Reuters) - U.S. Senator Marco Rubio filed legislation on Monday that would prevent Huawei Technologies Co Ltd from seeking damages in U.S. patent courts, after the Chinese firm demanded that Verizon Communications Inc pay $1 billion to license the rights to patented technology.

Under the amendment - seen by Reuters - companies on certain U.S. government watch lists, which would include Huawei, would not be allowed to seek relief under U.S. law with respect to U.S. patents, including bringing legal action over patent infringement.

On June 12, a person briefed on the matter said Huawei had told Verizon that it should pay licensing fees for more than 230 of the Chinese telecoms equipment maker’s patents and in aggregate is seeking more than $1 billion.

It appeared to be a new strategy in Huawei’s ongoing battle with the U.S. government. National security experts worry that “back doors” in routers, switches and other Huawei equipment could allow China to spy on U.S. communications. Huawei has denied that it would help China spy.

Rubio, one of the Republican party’s leading foreign policy voices, filed the measure as an amendment to the annual National Defense Authorization Act, or NDAA, a massive bill setting policy for spending by the Department of Defense.

While the measure is several steps from becoming law, lawmakers have successfully used the NDAA in past years to crack down on the Chinese firm.

Reporting by Patricia Zengerle; Editing by Leslie Adler

 

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