Archives of “Criticism of Huawei” tag

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Huawei reportedly delays production of flagship smartphone amid US crackdown

  
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Nikkei reports on the matter

Huawei

Huawei is said to have told suppliers to delay production for its newest flagship smartphone as the company weighs potential supply chain disruptions from an escalating US crackdown, according to sources familiar with the situation.

Adding that Huawei has also also halted production for some components of its Mate series of phones and trimmed orders for parts in the coming quarters.
The full report can be found here.
Not so good news for Huawei and tech in general but if anything, you can take this as a sign that China wouldn’t be too happy about recent US actions and will only add to tensions between the two if they are to try and resolve other issues moving forward.

Huawei says that sees no immediate solutions to US chip restrictions

  
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Comments by Huawei rotating CEO, Guo Ping

Huawei
  • Still working out a response to US chip restrictions
  • Business will be significantly affected by the curbs
  • But confident of finding solutions soon
In case you missed it, the Huawei issue from last Friday dragged the market lower initially before equities staged yet another late comeback towards the end of the week.
This is going to be a long and drawn out saga between the two countries, so expect more measures and countermeasures to be enacted in the coming weeks/months in response.

Huawei update – Trump wants to block the firms access to chips, China’s commerce ministry will do what it takes

  
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The US Commerce Department said it would restrict the ability of Huawei to develop semiconductors abroad with US technology.

A late on Friday afternoon US time (into the evening) WSJ report (may be gated):
  • Trump administration said it would impose export restrictions
  • These are designed to cut Huawei’s access to overseas suppliers
  • to stop foreign semiconductor manufacturers whose operations use US software and technology from shipping products to Huawei without first getting a license from US officials
Over the weekend China’s Commerce Dept (CNBC link) said
  • it is firmly opposed
  • it will take all necessary measures to safeguard Chinese firms’ rights and interests
  • it urges the US to immediately stop the policy
The US Commerce Department said it would restrict the ability of Huawei to develop semiconductors abroad with US technology.
The moves threaten to ignite a new round of US-China economic tensions.

UK PM Boris Johnson speaks with China President Xi – says “I love China” (or did he?)

  
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Chinese state media reports that BJ proclaimed his love for China in his phone call with Xi, which came just days after US President Trump threatened BJ over Huawei

You’ll recall the UK is OK with granting sensitive contracts to Huawei despite Trump’s opposition.
On the love, South China Morning Post says:
  • Johnson displayed a cosiness with Beijing that contrasts with his hardline approach to the European Union amid Brexit trade talks.
(SCMP link is here for more)
More:
“Britain welcomes investment from Chinese companies,” Johnson told Xi, according to Chinese state broadcaster CCTV. “We would like to strengthen our cooperation with China under the Belt and Road Initiative.”
Putin, Trump, Xi, Johnson.
Sheesh.
Keeping track of who owns who is getting complicated.
Chinese state media reports that BJ proclaimed his love for China in his phone call with Xi, which came just days after US President Trump threatened BJ over Huawei

US weighs new move to limit China’s access to chip technology – report

  
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US continues to target Huawei with proposed changes to restrict its use of chip-making equipment from the US

US China

The WSJ reports that the US is weighing new trade restrictions against China to cut off Huawei access to key semiconductor technology, citing people familiar with the plan.

It is reported that the Commerce Department is drafting changes to the foreign direct product rule, to make it so that chip factories overseas would need licenses if they intend to use American equipment to produce chips for Huawei. The full report can be found here.
That will be quite the change if it goes through as I reckon it won’t only add to more tensions between the US and China but also lead to further supply chain disruption in the industry as there will be a chunk of companies who will be restricted to do business.
But this once again goes to show that any real conciliation between the US and China on trade and other matters is still far away. The fact that the US wants to cut China off one of its key imports goes to show that these two are still clearly “at war”.

China has ordered government offices, public institutions to remove foreign computer equipment & software

  
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The Financial Times reports on the latest from China

China’s administration has ordered all government offices and public institutions to remove foreign computer equipment and software within three years
  • targets Chinese buyers to switch to domestic technology vendors
Sounds like the Chinese version of the Trump admin’s directive to halt ourchases of Chinese tech?
Here is the FT link, may be gated.
And Huawei we go!
Financial Times China microsfot dell
This is unlikely to be viewed as a positive for US-China relations. Should be a ‘risk’ negative.

Huawei founder expects no relief from US sanctions

  
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Huawei founder, Ren Zhengfei, spoke to the Associated Press

Huawei

He also adds that he doesn’t want relief from US sanctions if it would require China to make concessions in a tariffs war, even if that means his daughter – who is under house arrest in Canada – faces a more prolonged legal battle.

With regards to yesterday’s announcement by the US on adding more of Huawei’s subsidiaries to the entity list, he says that:

“Whether the entity list is extended or not, that will not have a substantial impact on Huawei’s business. We can do well without relying on American companies.”

If there’s any takeaway from the message here is that China isn’t going to let up on fighting back against the US even if the sanctions and tariffs continue.
It goes without saying that the next plausible form of retaliation by China would be to limit US business opportunities in the country.
Anyway, the full interview above can be found here.
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