Archives of “Mobile telecommunications” tag

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

  
  Analysis
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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.

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

  
  Analysis
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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”.

Ball in US’ court to make reasonable compromises on tariffs — Chinese press

  
  Analysis
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Global Times report

Monday’s phone call between US and Chinese officials send a positive signal about a deal but that China will stick to its core demands including a proportional removal of tariffs, according to a Global Times report.
“[The two sides] achieved consensus on properly addressing relevant issues and agreed to maintain contact over the remaining issues for the phase one trade agreement,” according to a statement released today from the Ministry of Commerce.
While the MOFCOM’s brief statement did not offer details on what had been discussed during the phone call, an expert close to the trade talks said that topics may have include tariff removals, agricultural purchases, a review mechanism for the implementation of a potential agreement as well as arrangements for a face-to-face meeting.

Still despite the positive signs, some Chinese experts stressed that China will stick to its core demands, including proportional removal of existing tariffs and a balanced text of the phase one trade agreement.

“The ball is in the US’ court,” said the expert close to the trade talks who spoke on the condition of anonymity.

Expect more details of the call to leak out in the hours ahead.

Sources: Apple mobilizes suppliers to launch first 5G iPhone range

  
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 In a quest to reclaim its crown as the world’s most innovative tech company, Apple is mobilizing suppliers to produce its first ever 5G iPhones next year, with the three flagship models also set to include the most advanced mobile processors available and leading-edge screens, the Nikkei Asian Review has learned.

The upgraded iPhones, which Apple hopes will vault the company over Huawei’s current position as the second-biggest smartphone maker, will also likely accelerate global carriers to roll out 5G telecoms infrastructure — especially outside China, which has already invested heavily in the nascent technology.

Apple has been slow to embrace 5G; its iPhone 11 series this year only features 4G wireless technology. However Apple will push to reclaim its former glory as the maker of the world’s “must-have” smartphone with the major product line overhaul in 2020, sources told Nikkei. The iPhone, first launched in 2007, still accounts for around half of company revenues.

Apple plans to ship at least 80 million of the new 5G phones, one of the sources said. Rivals such as Samsung Electronics, the world’s largest smartphone supplier, China’s Huawei Technologies and second-tier competitors such as Oppo and Xiaomi, have already launched 5G phones.

“It will be the first time Apple introduces 5G iPhones … There will be three of them and the company has set an aggressive sales target,” one of the people familiar with the company’s thinking said.

Apple reports fourth quarter earnings after the U.S. stock market closes on Wednesday. (more…)

ICYMI – Trump takes yet another dig at the Fed

  
  Analysis
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Trump doesn’t appear to be relenting his stance ahead of the FOMC meeting

The tweet read:

“We are doing great Economically as a Country, Number One, despite the Fed’s antiquated policy on rates and tightening. Much room to grow!”

With markets already all but certain about a 25 bps rate cut at the end of this month and Powell reaffirming those expectations, it sure sounds like he wants more rate cuts to follow later in the year despite claims of the economy doing “great”.
The issue here is that Trump wants to pursue a currency war now and that is not what the Fed is looking to do. If the Fed is just throwing around rate cuts on the back of some slight worries in the economic data, they won’t have very much ammunition left to deal with a proper economic downturn when the time does come.
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