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Sunday, January 31, 2021

Republican lawmakers press Biden Commerce nominee on Huawei stance - Reuters

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WASHINGTON (Reuters) - Three China hardliners in the Senate are calling on President Joe Biden’s Commerce Department nominee to clarify if she would remove China’s telecoms equipment giant Huawei Technologies Ltd from a trade blacklist under any circumstances.

FILE PHOTO: Gina Raimondo, U.S. President-elect Joe Biden's nominee to be secretary of Commerce, speaks during an event to announce members of Biden's economics and jobs team at his transition headquarters in Wilmington, Delaware, U.S., January 8, 2021. Picture taken January 8, 2021. REUTERS/Kevin Lamarque/File Photo

The letter from Republican Senators Marco Rubio, Ben Sasse and Tom Cotton comes after the nominee, Rhode Island Governor Gina Raimondo, sparked fears among China hawks when she vowed to protect U.S. telecommunications networks from Chinese companies but declined to commit to keeping Huawei on the list.

“We ask that you respond in writing with your view of whether you foresee any scenario in which you would, if confirmed as Secretary,...remove Huawei...from the Entity List,” or relax rules governing its access to 5G technology, the senators wrote in the letter, released Friday.

“The company has not changed alongside the U.S. presidency,” they warned. Huawei did not immediately respond to a request for comment.

The letter is a sign of growing pressure from Capitol Hill for Biden, a Democrat, to take a hard line on Beijing. The Biden team generally steered clear of clear policy commitments on China before taking office earlier this month, but it has promised to maintain a tough stance while employing a more a strategic, multilateral approach.

Biden’s predecessor, Republican Donald Trump, placed Huawei on a trade blacklist in May 2019 and led a global campaign to convince allies to exclude it from their 5G networks.

Washington has accused the company of being capable of spying on customers, as well as intellectual property theft and sanctions violations. Huawei has denied wrongdoing.

White House press secretary Jen Psaki said on Wednesday that the administration will work to safeguard American telecoms networks from “untrusted vendors” like Huawei Technologies that threaten national security. This offered some insight into its plans for China’s top telecoms equipment company, long in Washington’s crosshairs.

But the comments were not enough to assuage the three senators, who raised the specter of opposition to other Commerce Department nominees if they do not commit to a tough enough technology policy against Beijing.

“It is equally imperative that all nominees to the Department of Commerce follow your leadership in recognizing both the dangers of the (Chinese Communist Party) and the need to obstruct or squeeze (Chinese) access to U.S. technology that may advance (their) ambitions that are dangerous to U.S. interests,” they wrote. “If these nominees do not make clear that they will adhere to these broad concerns and objectives, they may face substantial opposition from Congress,” they added.

Reporting by Alexandra Alper; Editing by Chizu Nomiyama and Leslie Adler

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January 30, 2021 at 05:40AM
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Republican lawmakers press Biden Commerce nominee on Huawei stance - Reuters

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Huawei

Huawei sinks as Apple becomes world’s top smartphone seller - South China Morning Post

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[unable to retrieve full-text content]Huawei sinks as Apple becomes world’s top smartphone seller  South China Morning Post The Link Lonk


January 29, 2021 at 04:00PM
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Huawei sinks as Apple becomes world’s top smartphone seller - South China Morning Post

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Saturday, January 30, 2021

Canada judge rejects Huawei CFO Meng Wanzhou's request for looser bail terms - Reuters

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VANCOUVER (Reuters) - Huawei Chief Financial Officer Meng Wanzhou’s request to loosen the bail terms set during her release from jail in 2018 has been rejected, a Canadian judge ruled on Friday, as she fights a U.S. extradition case.

FILE PHOTO: Huawei Technologies Chief Financial Officer Meng Wanzhou leaves court on a lunch break in Vancouver, British Columbia, Canada December 7, 2020. REUTERS/Jennifer Gauthier

Meng is facing charges of bank fraud in the United States for allegedly misleading HSBC about Huawei’s business dealings in Iran, causing the bank to violate U.S. sanctions.

She has been under house arrest in Vancouver, Canada, since her arrest at the airport there in December 2018.

Her arrest caused a chill in relations between Beijing and Ottawa, and soon afterwards China detained two Canadians, who continue to have limited access to legal counsel or diplomatic officials.

Under the 2018 bail terms, Meng is permitted to leave her home in an upscale Vancouver neighbourhood during the day but must be escorted by a security detail at all times.

Meng asked a court to allow her to drop the daytime security detail, pointing to health conditions that she said made her more susceptible to COVID-19 and noting that she has not broken any of her bail conditions in two years.

Prosecutors for the Canadian government were against the change, arguing she should be considered a flight risk.

On Friday British Columbia Supreme Court Justice William Ehrcke dismissed her request, stating that “the current bail conditions are the minimum required to mitigate Ms. Meng’s risk of flight to an acceptable level.”

“At the time the order was made it was expected she would comply with it. The fact that she has done so is not a material change in circumstances,” Ehrcke said.

He said Meng’s lawyers did not present medical evidence that she is “more vulnerable than most other 48-year-old women” to be infected with the coronavirus.

Meng will next appear in court on March 1 for the last stage of her extradition hearings, which are scheduled to finish in May.

Reporting by Moira Warburton in Vancouver, Editing by Franklin Paul and Sonya Hepinstall

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January 30, 2021 at 02:03AM
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Canada judge rejects Huawei CFO Meng Wanzhou's request for looser bail terms - Reuters

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Huawei

Friday, January 29, 2021

Republican lawmakers press Biden Commerce nominee on Huawei stance - CNBC

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Gina Raimondo, U.S. President-elect Joe Biden's nominee to be secretary of Commerce, speaks during an event to announce members of Biden's economics and jobs team at his transition headquarters in Wilmington, Delaware, January 8, 2021.

Kevin Lamarque | Reuters

Three China hardliners in the Senate are calling on President Joe Biden's nominee to head the Commerce Department to clarify if she would remove China's telecoms equipment giant Huawei Technologies from a trade blacklist under any circumstances.

The letter from Republican Senators Marco Rubio, Ben Sasse and Tom Cotton comes after the nominee, Rhode Island governor Gina Raimondo, sparked outrage among China hawks when she vowed to protect U.S. telecommunications networks from Chinese companies but declined to commit to keeping Huawei on the list.

"We ask that you respond in writing with your view of whether you foresee any scenario in which you would, if confirmed as Secretary,...remove Huawei...from the Entity List," or relax rules governing its access to 5G technology, the Senators wrote in the letter, released Friday.

"The company has not changed alongside the U.S. presidency," they warned.

The letter is a sign of growing pressure from Capitol Hill for President Joe Biden to take a hard line on Beijing. The Biden team generally steered clear of clear policy commitments on China before taking office earlier this month, but it has promised to maintain a tough stance while employing a more a strategic, multilateral approach.

Biden's predecessor, Republican Donald Trump, placed Huawei on a trade blacklist in May 2019 and led a global campaign to convince allies to exclude it from their 5G networks.

Washington has accused the company of being capable of spying on customers, as well as intellectual property theft and sanctions violations. Huawei has denied wrongdoing.

White House Press Secretary Jen Psaki said on Wednesday that the administration will work to safeguard American telecoms networks from "untrusted vendors" like Huawei Technologies Co Ltd that threaten national security. This offered some insight into its plans for China's top telecoms equipment company, long in Washington's crosshairs.

But the comments were not enough to assuage the three Senators, who raised the specter of opposition to other Commerce Department nominees if they do not commit to a tough enough technology policy against Beijing.

"It is equally imperative that all nominees to the Department of Commerce follow your leadership in recognizing both the dangers of the (Chinese Communist Party) and the need to obstruct or squeeze (Chinese) access to U.S. technology that may advance (their) ambitions that are dangerous to U.S. interests," they wrote. "If these nominees do not make clear that they will adhere to these broad concerns and objectives, they may face substantial opposition from Congress," they added.

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January 30, 2021 at 05:40AM
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Republican lawmakers press Biden Commerce nominee on Huawei stance - CNBC

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Huawei Technologies CFO Can't Ditch Guards While on Bail - Bloomberg

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[unable to retrieve full-text content]Huawei Technologies CFO Can't Ditch Guards While on Bail  Bloomberg The Link Lonk


January 30, 2021 at 03:27AM
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Huawei Technologies CFO Can't Ditch Guards While on Bail - Bloomberg

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Eswatini decides not to block Chinese telecoms firms Huawei and ZTE - South China Morning Post

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[unable to retrieve full-text content]Eswatini decides not to block Chinese telecoms firms Huawei and ZTE  South China Morning Post The Link Lonk


January 30, 2021 at 04:00AM
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Eswatini decides not to block Chinese telecoms firms Huawei and ZTE - South China Morning Post

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Inside a Pro-Huawei Influence Campaign - The New York Times

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LONDON — Edwin Vermulst, a trade lawyer in Brussels, did not think twice before he agreed to write an article for Huawei, the Chinese telecommunications giant, that would criticize a Belgian policy that threatened to box the company out of lucrative contracts. He had worked with the company for years.

After the article was published Dec. 17 on a Dutch-language website, he moved on to other work. “That was the beginning and end of my involvement,” he said.

Little did he know that the article would take on a life of its own. It soon became part of a covert pro-Huawei influence campaign in Belgium about 5G networks, the high-speed wireless technology at the center of a geopolitical dispute between the United States and China.

First, at least 14 Twitter accounts posing as telecommunications experts, writers and academics shared articles by Mr. Vermulst and many others attacking draft Belgium legislation that would limit “high risk” vendors like Huawei from building the country’s 5G system, according to Graphika, a research firm that studies misinformation and fake social media accounts. The pro-Huawei accounts used computer-generated profile pictures, a telltale sign of inauthentic activity.

Next, Huawei officials retweeted the fake accounts, giving the articles even wider reach to policymakers, journalists and business leaders. Kevin Liu, Huawei’s president for public affairs and communications in Western Europe, who has a verified Twitter account with 1.1 million followers, shared 60 posts from the fake accounts over three weeks in December, according to Graphika. Huawei’s official account in Europe, with more than five million followers, did so 47 times.

The effort suggests a new twist in social media manipulation, said Ben Nimmo, a Graphika investigator who helped identify the pro-Huawei campaign. Tactics once used mainly for government objectives — like Russia’s interference in the 2016 American presidential election — are being adapted to achieve corporate goals.

“It’s business rather than politics,” Mr. Nimmo said. “It’s not one country targeting another country. It looks like an operation to promote a major multinational’s interests — and to do it against a European state.”

Graphika, which provided research for the Senate Intelligence Committee’s investigation of Russian disinformation, said there was not enough evidence to identify who was behind the pro-Huawei operation.

Huawei said in a statement that it had started an internal investigation “to try to find out what exactly has happened and if there has been any inappropriate behavior.”

“Huawei has clear social media policies based on international best practice, and we take any suggestion that they have not been followed very seriously,” the company said. “Some social media and online activity has been brought to our attention suggesting we may have fallen short of these policies and of our wider Huawei values of openness, honesty and transparency.”

Twitter said it had removed the fake accounts after Graphika alerted it to the campaign on Dec. 30.

“Platform manipulation is strictly prohibited under the Twitter rules,” the company said in a statement. “If and when we have clear evidence, we will take action on accounts associated with this practice, which may include permanent suspension.”

Huawei, the crown jewel of China’s technology industry, has suffered from a sustained American campaign to keep its equipment from being used in new 5G networks around the world. The Trump administration said the company posed a national security threat, arguing that the Chinese government could use Huawei’s communications technology for spying. Huawei has strenuously denied those accusations.

The Trump administration took several steps to hobble Huawei, including an effort to cut off its supply of critical semiconductors — policies that the Biden administration hasn’t committed itself to retaining. Britain announced a ban of Huawei products last year; Germany and other European countries are debating restrictions of their own.

The 5G contracts are expected to be worth billions of dollars.

Belgium, home to the headquarters of the European Union and the North Atlantic Treaty Organization, illustrates the risk Huawei faces across Europe, the company’s biggest market outside of China. Until now, Huawei and the Chinese company ZTE had dominated Belgium’s telecommunications-equipment market, according to Strand Consult, a research firm. But as the Belgian government considers new restrictions, wireless operators in the country are shifting 5G deals to rival companies.

“They fear this could spread to other parts of the world,” said John Strand, the founder of Strand Consult, which works with many wireless companies.

Mr. Nimmo said the pro-Huawei effort in Belgium had been clumsily executed and easy to identify. But it shows, he said, how underhanded internet campaigns try to launder seemingly legitimate material like Mr. Vermulst’s article through a mesh of websites and fake social media accounts to give it an air of impartiality and authenticity.

Graphika discovered the pro-Huawei effort after spotting suspicious posts about Belgium’s 5G policy from Twitter accounts used in an earlier pro-China operation. The Belgian magazine Knack and Michiel van Hulten, director of Transparency International in Brussels, also identified suspicious efforts to spread pro-Huawei information.

The 14 fake accounts amplified by Huawei officials spread positive articles about the company and negative views of Belgium’s 5G policy. The three-week campaign appeared to be tied to a Dec. 30 deadline in Belgium to review the country’s 5G policy.

To the casual Twitter user, the fake accounts looked legitimate. They included bland profile pictures along with career information. Many had more than 1,000 followers.

But on closer inspection, investigators identified problems with the accounts. Many of their followers appeared to be bots. And the pictures had the hallmarks of being created by artificial intelligence software, with perfectly centered photos but small imperfections, like asymmetrical glasses. Online businesses sell these kinds of photos of fake people, which can avoid the risk of detection that using pictures of real individuals can bring.

The fake accounts shared articles and commentary from different online publications, including EU Reporter, which publishes government news to its own website and affiliates like London Globe and New York Globe.

“If the Belgium government excludes specific suppliers, who will pay for it?” read the headline of one news story published on different EU Reporter websites.

Colin Stevens, the publisher of EU Reporter, said in an email that he had “no knowledge of any fake Twitter accounts promoting our articles.” Mr. Stevens said that Huawei had paid EU Reporter to publish opinion articles in the past, but that those were always labeled with disclaimers. The Belgian 5G stories were independently assigned without Huawei involvement, he said.

“EU Reporter would never knowingly be part of a disinformation campaign,” Mr. Stevens said.

In a few instances, investigators found articles like Mr. Vermulst’s, which Huawei paid for and included disclaimers about the financial arrangement. Other articles critical of the 5G policy appeared on websites that accept user-generated content without review, alongside author pictures that were the same as the computer-generated images in the fake Twitter profiles.

Phil Howard, the director of the Oxford Internet Institute, said operations like this would become more common as disinformation became increasingly commercialized. In a recent report, Oxford University researchers identified 63 instances in which public relations firms were involved in online disinformation operations in 2020. The work is typically on behalf of political figures or governments, he said, but can be applied to businesses.

“The flow of money is increasingly there,” Mr. Howard said. “Large-scale social media influence operations are now part of the communications tool kit for any large global corporation.”

In Belgium, the campaign appeared to have little effect beyond drawing unwanted attention to Huawei’s lobbying efforts. Policymakers have shown no signs of backing away from plans to limit Huawei’s access to the 5G networks. The draft legislation must now be considered by the country’s Parliament.

Mr. Vermulst, the trade lawyer, said he hadn’t known about the fake social media campaign until being contacted for this article. And while he called the effort “silly” and “stupid,” he hoped to continue working for Huawei.

“Lawyers get paid for legal opinions,” he said. “Once that article is in the public domain, anybody can do with it what they want.”

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January 29, 2021 at 05:16PM
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Inside a Pro-Huawei Influence Campaign - The New York Times

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Huawei's struggles hurt overall smartphone shipments in China, but rivals like Apple found new opportunities - Yahoo Tech

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The impact of United States government sanctions on Huawei is continuing to hurt the company and dampen overall smartphone shipments in China, where it is the largest smartphone vendor, according to a new report by Canalys. But Huawei’s decline also opens new opportunities for its main rivals, including Apple.

Canalys says Apple’s performance in China during the fourth-quarter of 2020 was its best in years, thanks to the iPhone 11 and 12. Its full-year shipments returned to its 2018 levels, and it reached its highest quarterly shipments in China since the end of 2015, when the iPhone 6s was launched.

Overall, smartphone shipments in China fell 11% to about 330 million units in 2020, with market recovery hindered by Huawei’s inability to ship new units. Even though demand in China for Huawei devices remains high, the company has struggled to cope with sanctions imposed by the U.S. government under the Trump administration that banned it from doing business with American companies and drastically curtailed its ability to procure new chips.

In May 2020, Huawei rotating chairman Guo Ping said even though the firm can design some semiconductor components, like integrated circuits, it is "incapable of doing a lot of other things."

This left Huawei unable to meet demand for its devices, but gives its main rivals new opportunities, wrote Canalys vice president of mobility Nicole Peng. "Oppo, Vivo and Xiaomi are fighting to win over Huawei’s offline channel partners across the country, including small rural ones, backed by huge investments in store expansion and marketing support. These commitments brought immediate results, and market share improved within mere months."

Apple benefited from Huawei’s decline because the company’s Mate series is the iPhone’s main rival in the high-end category, and only 4 million Mate units were shipped in the fourth quarter. "However, Apple has not relaxed its market promotions for iPhone 12,” wrote Canalys research analyst Amber Liu. “Aggressive online promotions across e-commerce players, coupled with widely available trade-in plans and interest-free installments with major banks, drove Apple to its stellar performance."

During the fourth-quarter of 2020, smartphone shipments in mainland China fell 4% year-over-year to a total of 84 million units. Even though it held onto its number one position in terms of shipments, Huawei’s total market share plummeted to 22% from 41% a year earlier, and it shipped just 18.8 million smartphones, including units from budget brand Honor, which it agreed to sell in November.

Canalys' graph showing shipments by the top five smartphone vendors in China

Canalys' graph showing shipments by the top five smartphone vendors in China

Huawei’s main competitors, on the other hand, all increased their shipments at the end of 2020. Oppo took second place, shipping 17.2 million smartphones, a 23% increase year-over-year. Oppo’s closest competitor Vivo increased its quarterly shipment to 15.7 million units. Apple shipped more than 15.3 million units, putting its market share at 18%, up from 15% a year ago. Xiaomi rounded out the top five vendors, shipping 12.2 million units, a 52% year-over-year increase.

Huawei’s decision to sell Honor means the brand may rapidly gain market share in 2021, since it already has consumer recognition, wrote Peng. 5G is also expected to help smartphone shipments in China, especially for premium models.

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January 29, 2021 at 12:22PM
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Huawei's struggles hurt overall smartphone shipments in China, but rivals like Apple found new opportunities - Yahoo Tech

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Thursday, January 28, 2021

Stockholm syndrome - Will Sweden's Huawei ban harm Sino-Swedish business? | Business - The Economist

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The Chinese government may want to retaliate against Sverige AB. Swedish firms' fate could serve as a cautionary tale for other European countries.

BusinessJan 30th 2021 edition

COMMERCIAL TIES between Ericsson and China date back to the 1890s, when the Swedish company sold 2,000 telephones to Shanghai. It has been welcome in the Chinese market ever since, most recently selling speedy 5G telecoms gear. Now, fears Borje Ekholm, Ericsson’s boss, those bonds are in jeopardy, as a result of the Swedish government’s anti-Chinese turn.

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After centuries of cordial relations—from the Swedish East India Company’s ships sailing between Gothenburg and Guangzhou in the 18th century to Sweden’s early recognition of the People’s Republic in 1950 and its blessing in 2010 of the Chinese takeover of Volvo, a much-loved carmaker—the mood has changed. Last October the Swedish telecoms regulator barred Huawei, Ericsson’s Chinese rival, from the country’s speedy 5G mobile networks, citing “theft of technology” by China. This month, after an auction of Sweden’s 5G radio spectrum that forbade the winners from using kit from Huawei and ZTE, another Chinese supplier, China’s commerce ministry hinted that the ban could compromise bilateral economic ties.

That would be bad news for Ericsson, which derives 13% of its revenues from China. It is the only foreign company that provides China with certain types of 5G kit—which China is well ahead of most other countries in installing, thanks to gargantuan sums channelled into telecoms infrastructure. But Mr Ekholm’s fellow bosses are equally worried, if not quite as outspoken. Plenty of Swedish blue chips have a large exposure to the Asian giant, from ABB and Atlas Copco, two engineering groups, to Essity, a maker of nappies, and AstraZeneca, a Swedish-British pharmaceutical giant (see chart).

Joakim Abeleen, the Beijing representative of Business Sweden, a lobby group, observes that diplomatic ties soured after 2015. That year Chinese agents arrested Gui Minhai, a Swedish national who sold books in Hong Kong that were critical of the Communist Party. This, along with Chinese buyers’ aggressive pursuit of Swedish assets, including a port, infuriated Sweden’s government, which has since become one of Europe’s staunchest critics of China.

Even so, Mr Abeleen says, relations between the two countries’ corporate worlds remained cordial. Swedish exports to China (mainly medicines, vehicles and machinery) rose by 15% in the first ten months of 2020, year on year. It is Sweden’s fifth-biggest source of imports and sixth-largest export market. Around 600 subsidiaries of Swedish companies operate there; the 30 biggest reported an 18% increase in their Chinese sales in 2019, compared with a year earlier. A year ago a survey of Swedish businesses in China found that 34% planned to increase their investments in the country.

The 5G ruckus risks undermining this mutually beneficial state of affairs. China appears ready to use Sweden as a cautionary tale for other EU countries, showing what happens if they bar Huawei from their 5G networks, says a prominent Swedish industrialist. That would be tricky for Ericsson—which, as Mr Ekholm points out, needs China for global scale.

It could also harm Sverige AB more broadly; a well-functioning trade system is “pivotal” for a small, open country like Sweden, the industrialist warns. No wonder many bosses are quietly hoping that the country’s highest administrative court will reverse the telecoms regulator’s decision, which Huawei has appealed against.

This article appeared in the Business section of the print edition under the headline "Stockholm syndrome"

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January 29, 2021 at 12:58PM
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Huawei suffers same phone-making jinx as other telecom vendors — Baker - FierceWireless

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Industry Voices Simon Baker

In mid-November last year Huawei sold its Honor phone brand to a consortium of Chinese interests mainly based in Shenzhen. On January 25, Reuters reported that Huawei was also in talks to sell its P and Mate premium smartphone series to another group of Chinese interests, this time in Shanghai.

The jinx against telco infrastructure companies making phones has struck again. 

From the beginning of the mobile phone era it has always seemed to make sense for big such players to get into making phones. They had scale, they had technology, and above all they had widespread international operations with good contacts at the mobile operators, and so a big head start in distribution and retailing.

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Jinx version one – company culture

Back in the feature phone era the main European telco gear players Alcatel, Siemens, Ericsson and Nokia all took this route. 

All are now out of the phone-making business.  

The jinx to begin with seemed much to do with company cultures. Telecom gear makers are B2B companies, dealing with very large corporate clients in the main. They are a world away from consumer electronics firms with their expertise in manufacturing at scale, in marketing and advertising, and in distribution, which is what making phones is about.

RELATED: Industry Voices — Baker: Apple and mobile operators tango together on 5G iPhone 12

Over time that disparity became more evident, so it was perhaps not such a surprise that one by one these phone ventures fell by the wayside. In 2005 Alcatel sold its handset operations to its Chinese partner TCL, and Siemens sold its own business, and a decade ago Ericsson disentangled itself from Sony Ericsson leaving the phone venture to its Japanese partner. 

Jinx version two – corporate missteps

Nokia managed not to fall into this trap – its handset division grew so big it dominated the company. But that did not save the company from the jinx. 

The jinx instead got Nokia when it failed to repeat its dominance of the feature-phone era in the new era of smartphones. The rest is history as Nokia's handset division got taken over by Microsoft in 2013 and eventually was largely wound down.

Jinx version three – geopolitics 

In China the jinx did not seem to be known, or perhaps it got lost in translation. Huawei got into the phone business in a big way around a decade ago; it says that it started it up because its mobile operator clients asked it to. Its smaller Chinese infrastructure rival ZTE made the same move. 

Huawei has a very dynamic corporate culture, and may well have decided that the jinx in the form of corporate culture need not apply. 

The two Chinese companies soon rode high, and indeed it was not corporate culture that brought them down. The jinx had taken a new form, it had mutated, to use a term now popular in relation to the coronavirus. 

ZTE, the smaller player, was the first to be hit by a new threat, U.S. sanctions. ZTE was targeted not as an agent of the Chinese state, but because the U.S. authorities said it had broken U.S. sanctions on Iran. A deal between the U.S. and ZTE in 2017 saw the Chinese company pay more than $1 billion in damages and agree to have U.S. supervision of its board. After the hiatus in phone production, ZTE has never really recovered in smartphones, although it is back in the business. 

The jinx still bit, even if it was no longer terminal in its new form.

Then came the turn of Huawei. The U.S. government first took aim at the world's biggest 5G infrastructure company in May 2019, in a move that led to the company being unable to use Google Mobile Services apps on new models. Before then the company was on a trajectory to overtake Samsung at the top of the Android phone market. 

RELATED: Huawei CEO says further U.S. restrictions could open ‘Pandora’s Box’

By the third quarter of last year Huawei had seven percent of the global Android market outside China, its share down by a half from its peak in Q1 2019. The latest IDC data for the full year is expected to show a big further drop in the fourth quarter.

Huawei has now completed the divestment of its subsidiary brand Honor, which accounted for around a fifth of global unit sales outside China. It has denied the talks reported by Reuters to divest itself of its P and Mate series. But if that should happen, it would gut its phone operations in export markets, leaving it only with low end phones, and it would be a severe blow in its home market of China, although it does have several other model series there. But the logic of that kind of move is clear -- current U.S. restrictions don't let Huawei use U.S. technology in products related to 5G.

Who next?

To take advantage of the wave of rejection of Huawei as a supplier of 5G networks across the Western world, Samsung is making a push to build up its more modest telecom gear operations to become a much more potent competitor to Ericsson and Nokia.

Samsung is a massive conglomerate with operations extending across semiconductors and displays as well as a wide range of consumer electronics. It does not need to worry about the impact of B2B telco infrastructure activities on company culture. 

South Korea is also a stalwart ally of America, so no anxiety about U.S. sanctions either. But it might like to think - how might the jinx show itself next?

Simon Baker is program director for mobile phones and consumer devices at IDC EMEA and a coordinator of IDC global forecasting for the 5G smartphone market. He is a long-time analyst in the mobile phone arena. Please contact him at [email protected]

Industry Voices are opinion columns written by outside contributors—often industry experts or analysts—who are invited to the conversation by FierceWireless staff. They do not represent the opinions of FierceWireless.

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January 29, 2021 at 01:02AM
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Huawei suffers same phone-making jinx as other telecom vendors — Baker - FierceWireless

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From No. 1 to No. 6, Huawei smartphone shipments plunge 41% as U.S. sanctions bite - CNBC

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Customers at a Huawei licensed experience store shop for devices on October 30, 2020 in Suzhou, China.

Fred Lee | Getty Images News | Getty Images

GUANGZHOU, China — Huawei's smartphone shipments have continued to plunge as a result of U.S. sanctions, sending the once No. 1 vendor in the world tumbling below rivals like Apple.

The Chinese technology giant shipped 33 million smartphones globally in the fourth quarter of 2020, a 41% year-on-year decline, putting its market share at 8%, according to data released by Counterpoint Research on Thursday.

That made Huawei the sixth biggest smartphone maker in the December quarter, behind Chinese rivals like Oppo and Vivo and far behind Apple and Samsung.

Data released Thursday by Canalys showed Huawei shipped 32 million smartphones in the fourth quarter, down nearly 43% from last year. It's the first time Huawei has slipped out of the top five in six years, Canalys said.

"Huawei dramatically receded in most markets as the result of the US sanctions," Amber Liu, analyst at Canalys Research, said in a report.

The latest figures mark a sharp fall for Huawei versus the second quarter of 2020 when it was No. 1 in the world by shipments.

For the entire 2020 year, Huawei was the third-largest by smartphone shipments, according to the research firms. Huawei responded to the latest numbers noting its third place position.

"Huawei has always been committed to innovation and devoted to creating more value for consumers with better products. Over the last year, our smartphone business has developed robustly, and tablet, PC and wearable have seen a significant growth. We remain confident about the future," the company said in a statement.

Huawei's woes come as Apple shipped 90.1 million phones during the fourth quarter, the largest number ever shipped by any vendor in the history of the smartphones, according to IDC. Apple also posted a record quarter of revenues in China.

Indeed, U.S. sanctions are taking their toll on Huawei's smartphone business. In 2019, Huawei was put on a U.S. blacklist called the Entity List which restricted American firms from exporting key components and software to the company.

The biggest effect of that was cutting Huawei off from Google's Android operating system. That's not a big deal in China where Google services such a Gmail and search are blocked. But in international markets, it has been key to Huawei's growth as consumers are used to these services.

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January 28, 2021 at 02:46PM
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From No. 1 to No. 6, Huawei smartphone shipments plunge 41% as U.S. sanctions bite - CNBC

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Huawei’s smartphone chief to lead new growth businesses - South China Morning Post

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[unable to retrieve full-text content]Huawei’s smartphone chief to lead new growth businesses  South China Morning Post The Link Lonk


January 28, 2021 at 05:15PM
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White House vows to protect US telecoms network from Huawei security threat - Fox Business

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The Biden administration will work to safeguard American telecoms networks from "untrusted vendors" like Huawei Technologies Co Ltd that threaten national security, the White House said on Wednesday, offering some insight into its plans for China's top telecoms equipment company, long in Washington's crosshairs.

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"Telecommunications equipment made by untrusted vendors, including Huawei, is a threat to the security of the U.S. and our allies," White House press secretary Jen Psaki told reporters in a daily briefing.

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"We'll ensure that the American telecommunications network...do not use equipment from untrusted vendors and we'll work with allies to secure their telecommunications networks and make investments to expand production of telecommunications equipment by trusted U.S. and allied companies," she added.

Huawei declined to comment and the Chinese Embassy in Washington did not immediately respond to a request for comment.

Questions have swirled about how Democratic President Joe Biden, who took office earlier this month, will handle Huawei. The company has been accused by Washington of being capable of spying on customers, as well as intellectual property theft and sanctions violations. Huawei has denied wrongdoing.

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Biden's predecessor, Republican Donald Trump, placed the company on a trade blacklist and led a global campaign to convince allies to exclude it from their networks.

The remarks come after Rhode Island Governor Gina Raimondo, Biden's nominee to head the U.S. Commerce Department, raised red flags among China hardliners in Washington on Tuesday by refusing to commit to keeping Huawei on the U.S. economic blacklist overseen by the agency.

Republican Congressman Michael McCaul, a China hardliner with no role in the confirmation proceedings, called on the Senate on Wednesday to put a freeze on the Raimondo process until the Biden administration gives a clear answer on whether it plans to keep Huawei on the blacklist.

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"We need a Commerce Department with strong national security credentials and a Secretary with a clear understanding of the (Chinese) threat," he said in a statement. "Until they make their intentions clear on whether they will keep Huawei on the Entity List, I urge my Senate colleagues to hold Ms. Raimondo’s confirmation."

The Senate Commerce Committee said Wednesday it will vote Feb. 3 on Raimondo's nomination.

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(Reporting by Jeff Mason, Nandita Bose and Alexandra Alper in Washington; Additional Reporting by David Shepardonson; Editing by Chizu Nomiyama and Marguerita Choy)

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January 28, 2021 at 01:59PM
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Wednesday, January 27, 2021

McCaul urges senators to block vote on Commerce secretary over Huawei concerns | TheHill - The Hill

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Rep. Michael McCaulMichael Thomas McCaulKremlin: US statements about pro-Navalny protests show 'direct support for the violation of the law' Thousands detained at pro-Navalny rallies in Moscow Cheney tests Trump grip on GOP post-presidency MORE (R-Texas), ranking member of the House Foreign Affairs Committee, on Wednesday called on the Senate to block a vote to confirm Gina RaimondoGina RaimondoBiden's Cabinet gradually confirmed by Senate Hillicon Valley: Raimondo wades into 230 debate | Google cuts donations to election result deniers | House GOP unveils tech plan Rep. Rodgers outlines GOP 'Big Tech Accountability Platform' MORE, President Biden's nominee for Commerce secretary, over concerns about her stance on Chinese telecommunications group Huawei.

McCaul specifically cited concerns regarding Raimondo’s unclear answer during her nomination hearing earlier in the week about whether Huawei would remain on the Commerce Department’s entity list, with companies on the list effectively blacklisted. 

“Until they make their intentions clear on whether they will keep Huawei on the Entity List, I urge my Senate colleagues to hold Ms. Raimondo’s confirmation,” McCaul said in a statement Wednesday criticizing the Biden administration’s stance toward Huawei remaining on the list. 

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Huawei, which is one of the largest 5G equipment manufacturers in the world, was added to the list by the Trump administration over potential ties to the Chinese government and espionage concerns. It has also been classified as a national security threat by the Federal Communications Commission, though Huawei is currently fighting that in court.

Raimondo was questioned by Sen. Ted CruzRafael (Ted) Edward CruzSenate committee advances Biden's DHS pick despite Republican pushback Google suspends donations to lawmakers who voted against certifying election The Hill's Morning Report - Biden argues for legislative patience, urgent action amid crisis MORE (R-Texas) during her nomination hearing before the Senate Commerce Committee on Tuesday about whether she would commit to keeping Huawei on the entity list. 

While Raimondo pledged earlier in the hearing to “use the full tool kit at my disposal to the fullest extent possible to protect Americans and our network from Chinese interference,” she did not firmly commit to keeping the telecom giant on the list. 

“I will commit that should I be confirmed and I am there, I will review the policy, consult with you, consult with industry, consult with our allies, and make an assessment as to what’s best for American national and economic security,” Raimondo told Cruz when questioned on Huawei.

White House press secretary Jen PsakiJen PsakiOvernight Health Care: Biden takes steps to boost number of vaccine doses sent to states | CDC researchers find 'little evidence' of major school outbreaks, with precautions | Eli Lilly says antibody combo significantly cuts COVID-19 death risk Biden takes steps to boost number of vaccine doses sent to states Biden has first call with Putin as president MORE has also been questioned on the status of Huawei twice this week and has stressed the Biden administration's intention to hold firm in securing U.S. telecommunications systems against any potential Chinese threats. 

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“Telecommunications equipment made by untrusted vendors, including Huawei, is a threat to the security of the U.S. and our allies,” Psaki told reporters Wednesday. “We’ll ensure that the American telecommunications network does not use equipment from untrusted vendors, and we will work with allies to secure their telecommunications networks and make investments to expand the production of telecommunications equipment by trusted U.S. and allied companies.”

McCaul on Wednesday criticized this statement along with Psaki’s earlier comments this week that did not give details on if Huawei would remain on the entity list. 

“It is incredibly alarming the Biden Administration has refused to commit to keeping Huawei on the Department of Commerce’s Entity List,” McCaul said. “Huawei is not a normal telecommunications company – it is a CCP military company that threatens 5G security in our country, steals U.S. intellectual property, and supports the Chinese Communist Party’s genocide in Xinjiang and their human rights abuses across the country.”

“Saying people should not use Huawei and actually keeping them on the Entity List are two very different things that result in very different outcomes,” McCaul said. “I again strongly urge the Biden Administration to reconsider this dangerous position.”

The Senate will not vote on Raimondo's confirmation until she is approved by the Senate Commerce Committee, which is set to vote on the matter on Feb. 3. 

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Concerns around Huawei have been an area of agreement over the past few years, with former President TrumpDonald TrumpBlinken holds first calls as Biden's secretary of State Senators discussing Trump censure resolution Dobbs: Republicans lost in 2020 because they 'forgot who was the true leader' MORE signing into law bipartisan legislation last year that banned the use of federal funds to purchase Huawei equipment due to security concerns and established a fund for small telecom groups to rip out and replace existing Huawei equipment. 

Several allied countries have also taken steps against the company, with the United Kingdom and France last year both making moves to limit the use of Huawei equipment in critical networks. 

While McCaul as a member of the House does not have the power to place a hold on Raimondo’s nomination, there are several Republican members of the Senate who have expressed deep concerns about Huawei who do have the ability to block a vote. 

Cruz could be one of them, with a spokesperson for the senator telling The Hill on Wednesday that Cruz "was deeply concerned by Commerce Secretary nominee Raimondo’s comments on Huawei yesterday and all options remain on the table."

Sen. Ben SasseBen SasseJust five GOP senators vote Trump impeachment trial is constitutional Senate committee advances Biden's DHS pick despite Republican pushback Juan Williams: Let America be America MORE (R-Neb.) could be another, putting out a statement Tuesday describing Huawei as “the Chinese Communist Party’s tech puppet and a serious threat to national security," and stressing that "tough talk on China is empty if you let Huawei out of the box.” A spokesperson for Sasse did not respond to The Hill's request for comment. 

A Republican spokesperson for the House Foreign Affairs Committee told The Hill that they hoped McCaul's comments would "encourage" senators to block Raimondo's nomination. 

“Rep. McCaul is not one to throw bombs for no reason,” the spokesperson said. “But this is a very important issue, and that is why he felt it was important to make it clear this is not acceptable.” 

“We have been urging our allies and countries around the world to stop using Huawei,” they added. “What kind of message does that send to them if we are now wavering?”

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January 28, 2021 at 05:20AM
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McCaul urges senators to block vote on Commerce secretary over Huawei concerns | TheHill - The Hill

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Apple Led World In Smartphone Shipments In 4th Quarter; Xiaomi Soared, Huawei Sank - Forbes

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Apple shipped its most iPhones ever in a single three-month period in the fourth quarter of 2020; China’s Huawei sank and its Huawei’s Chinese rivals gained, research firm Canalys said today.

At 81.8 million units, Apple’s shipments rose 4% from the previous year. Samsung ranked second, shipping 62.0 million units, a 12% decline from a year earlier.

“The iPhone 12 is a hit,” said Canalys analyst Vincent Thielke in a statement. “Apple is better positioned than its competitors on 5G, being heavily skewed towards developed markets, and mobile operator sales channels.”

Xiaomi, Oppo and Vivo rounded out the top five, with each seeing share gains from a “beleaguered” Huawei (including Honor), Canalys said. Xiaomi grew 31% to 43.4 million units, Oppo grew 15% to 34.7 million units, while Vivo shipped 32.1 million units for 14% growth.

Huawei (including Honor) came in sixth place in the fourth quarter with 32.0 million smartphones shipped, marking the first time in six years that it fell outside the global top five smartphone vendors. “Huawei dramatically receded in most markets as the result of the U.S. sanctions,” said Canalys analyst Amber Liu.

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For all of 2020, Samsung maintained its global leadership with a 20% global market share. Apple came in second place and Huawei (including Honor) remained in the top three.

Worldwide smartphone shipments totaled 359.6 million units in the fourth quarter, a decline of 2% year-on-year, Canalys said.

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January 28, 2021 at 11:52AM
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Apple Led World In Smartphone Shipments In 4th Quarter; Xiaomi Soared, Huawei Sank - Forbes

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Huawei exec who turned the Chinese firm into smartphone giant takes the reins at the cloud and A.I. unit - CNBC

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Richard Yu (Yu Chengdong), head of Huawei's consumer business, speaks during the presentation of a Kirin 990 5G chip set at the international electronics and innovation fair IFA in Berlin on September 6, 2019.

Tobias Schwarz | AFP | Getty Images

GUANGZHOU, China — Richard Yu, head of Huawei's smartphone business, has been selected to also lead the company's young cloud and artificial intelligence unit, a source with direct knowledge of the matter told CNBC, just as the handset division faces an uncertain future.

Yu turned Huawei into a company that designed and made phones for other brands into one of the world's top smartphone vendors in just a few years. After a brief time as the top smartphone maker in the world, Huawei's handset business has been in decline due to U.S. sanctions.

The executive, who has been at Huawei for nearly three decades, will start his post as head of the cloud and AI business on Feb. 7, the source said.

Neither Huawei nor Yu was immediately available for comment.

Moving a successful veteran to this business unit, which was created last year, highlights the areas where Huawei sees its future as some of its businesses, in particular smartphones, continue to feel the heat from U.S. pressure.

"Richard has a proven track record in Huawei from various posts. I believe there will be greater synergy between smartphones and cloud computing with him onboard with additional responsibility," said the source, who was not authorized to speak publicly.

Yu's appointment comes at a time of flux for Huawei. He will be tasked with deciding what comes next for Huawei's smartphone business but also with trying to turn the company into a cloud computing and artificial intelligence giant, competing with rivals such as Alibaba, Tencent and Baidu.

Smartphone troubles

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January 27, 2021 at 07:04PM
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Huawei exec who turned the Chinese firm into smartphone giant takes the reins at the cloud and A.I. unit - CNBC

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Honor CEO says no longer restrained by US sanctions on Huawei - South China Morning Post

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January 27, 2021 at 06:00PM
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Honor CEO says no longer restrained by US sanctions on Huawei - South China Morning Post

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Huawei reportedly trying to sell off its premium smartphone brands - 9to5Google

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It’s no secret that Huawei has been in a tough spot since being added to the US Entity list and essentially cut off from Google on its Android phones. With no solution in sight, Huawei is reportedly in talks to sell off its premium Mate and P series smartphone brands.

Reuters reports that Huawei is in “early-stage talks” to sell both its Mate and P series smartphone brands, leading to an eventual exit from the high-end smartphone space. Apparently, Huawei has been talking about this move since September of 2020 and, despite active talks continuing, a final decision has not been made. If sold, the brands would be purchased by a government-backed group, just like what happened with Honor last year.

China’s Huawei Technologies Co Ltd is in early-stage talks to sell its premium smartphone brands P and Mate, two people with direct knowledge of the matter said, a move that could see the company eventually exit from the high-end smartphone-making business.

The potential sale of Huawei’s premium smartphone lines suggests the company has little hope that the new Biden administration will have a change of heart towards the supply chain restrictions placed on Huawei since May 2019, the two people said.

Huawei’s Mate and P series smartphones have been among the most popular smartphones in the world for years, with the two lines being worth $39.7 billion between Q3 2019 and Q3 2020 according to the IDC.

This news should be taken with a grain of salt, though, as a Huawei spokesperson directly said that the company has “no such plan” and that “there is no merit to these rumors whatsoever.” Of note, though, this sounds a bit familiar. Just this month, rumors of LG exiting the smartphone business were denied directly by spokespeople, only to be confirmed a week later.

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January 26, 2021 at 12:29AM
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Huawei reportedly trying to sell off its premium smartphone brands - 9to5Google

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Tuesday, January 26, 2021

Commerce Nominee Pledges Tough China Stance, but Mum on Huawei Blacklist - The Wall Street Journal

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WASHINGTON—President Biden’s pick for Commerce secretary pledged a tough line against Chinese trade and technology threats, but stopped short of saying she would continue the Trump administration’s blacklisting of Huawei Technologies Co.

“We can’t have the Chinese or really anyone having a backdoor into our network and compromising in any way our national or economic security,” Rhode Island Gov. Gina Raimondo said at her Senate confirmation hearing Tuesday.

Referring specifically to Huawei, Ms. Raimondo said she would “use the full tool kit at my disposal…to protect Americans and our network from Chinese interference or any kind of backdoor influence into our network.”

But in response to questioning from Sen. Ted Cruz (R., Texas), Ms. Raimondo stopped short of endorsing specific actions taken against Chinese tech companies by the former administration. She declined to promise to maintain the Commerce Department’s blacklisting of Huawei, pending a review.

That prompted Sen. Cruz to say he hopes the new administration won’t “go easy” on China, as he said some have speculated.

Sen. Ben Sasse (R., Neb.) said later in a statement: “This is ridiculous: Huawei didn’t change because America has a new president. Huawei is still the Chinese Communist Party’s tech puppet and a serious threat to national security. Tough talk on China is empty if you let Huawei out of the box.”

Former President Donald Trump issued orders to blacklist Huawei—cutting it off from American suppliers and banning it from doing business in the U.S.— on grounds that it was a security threat.

Huawei has repeatedly denied those allegations. Representatives of the company didn’t immediately respond to a request for comment Tuesday.

Ms. Raimondo’s comments reflected the Biden administration’s measured approach to addressing Chinese technology threats, after several years of aggressive attacks by Mr. Trump.

On the one hand, Mr. Biden remains “committed to stopping China’s economic abuses on many fronts,” White House press secretary Jen Psaki said on Monday.

She said the administration has launched reviews of Trump administration actions involving Chinese businesses, some of which have yet to be implemented or have been delayed by legal challenges.

Ms. Psaki said the administration is “starting from an approach of patience as it relates to our relationship with China.”

The impacts of that approach on specific Trump administration actions aren’t yet known, however. The Justice Department declined to comment Tuesday on whether it will seek a delay in some of the legal challenges against Trump executive actions, including one by Chinese-owned social media app TikTok, or drop its defense of them.

The Chinese Embassy didn’t immediately respond to a request for comment.

Gov. Raimondo, a Democrat and former venture capitalist, said she would employ all the tools available to the Commerce Department, including trade sanctions, “to level the field for the American worker.”

No vote was taken immediately on Gov. Raimondo’s nomination, but Commerce Committee Chairman Roger Wicker (R., Miss.) predicted she would soon win confirmation.

The tech battle between the U.S. and China has battered TikTok and Huawei and startled American companies that produce and sell in China. WSJ explains how Beijing is pouring money into high-tech chips as it wants to become self-sufficient. Video/Illustration: George Downs/The Wall Street Journal (Originally published Sept. 8, 2020)

Write to John D. McKinnon at john.mckinnon@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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January 27, 2021 at 03:27AM
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Huawei may spin off its P and Mate smartphone brands - Engadget

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Obviously, the price of any deal is still unknown. Last summer, however, Huawei topped the smartphone sales charts with 55.1 million units shipped. Sales of the Mate and P Series phones (the latest models are the P40 Pro and Mate 40) were reportedly $39.7 billion between Q3 2019 and Q3 2020, according to IDC.

Huawei may spin off its Mate and P smartphone brands

Engadget

The Mate 40 will be Huawei’s last chip with its high-end Kirin processors, though. That’s because its primary chip manufacturer, TSMC, said it won’t build chips for Huawei anymore — because TSMC sources some components from the US, which has banned US companies from selling to Huawei. Samsung also recently announced that it will stop supplying Huawei with phone chips amid US sanctions.

On the other hand, ARM — the company that makes the chip designs used by all major smartphone makers — has said that it would continue working with Huawei. To that end, Huawei has reportedly been working on a way to manufacture Kirin chips itself using ARM designs. It may decide not to sell the Mate and P brands based on how that goes, according to Reuters.

Shortly after Huawei sold it off, Honor unveiled the View40 5G smartphone powered by a MediaTek processor. That model in theory can now be sold in Europe and the US with Google’s apps, as it’s no longer on the US entity list. If Huawei spun off its premium brands, they could also possibly go on sale again in the west — a nice thing for consumers, as they P40 and Mate 40 are powerful phones.

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January 25, 2021 at 08:12PM
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Exclusive: China's Huawei in talks to sell premium smartphone brands P and Mate - sources - Reuters

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(Reuters) - China’s Huawei Technologies Co Ltd is in early-stage talks to sell its premium smartphone brands P and Mate, two people with direct knowledge of the matter said, a move that could see the company eventually exit from the high-end smartphone-making business.

The talks between the world’s largest telecommunications equipment maker and a consortium led by Shanghai government-backed investment firms have been going on for months, the people said, declining to be identified as the discussions were confidential.

Huawei started to internally explore the possibility of selling the brands as early as last September, according to one of the sources. The two sources were not privy to the valuation placed on the brands by Huawei.

Shipments of Mate and P Series phones were worth $39.7 billion between Q3 2019 and Q3 2020, according to consultancy IDC.

However, Huawei has yet to make a final decision on the sale and the talks might not conclude successfully, according to the two sources, as the company is still trying to manufacture at home its in-house designed high-end Kirin chips which power its smartphones.

“Huawei has learned there are unsubstantiated rumours circulating regarding the possible sale of our flagship smartphone brands,” a Huawei spokesman said. “There is no merit to these rumours whatsoever. Huawei has no such plan.”

The Shanghai government said it was not aware of the situation and declined to comment further.

The potential sale of Huawei’s premium smartphone lines suggests the company has little hope that the new Biden administration will have a change of heart towards the supply chain restrictions placed on Huawei since May 2019, the two people said.

The Shanghai government-backed investment firms may form a consortium with Huawei’s dealers to take over the P and Mate brands, according to the second person, a similar model to the Honor deal. Huawei is also likely to keep its existing P& Mate management team for the new entity, if the deal goes through, the two people said.

FILE PHOTO: The Huawei logo is seen at the IFA consumer technology fair, amid the coronavirus disease (COVID-19) outbreak, in Berlin, Germany September 3, 2020. REUTERS/Michele Tantussi

OVERCOMING U.S. CURBS

Huawei, the world’s biggest telecoms equipment vendor and No.2 smartphone maker, last November announced the sale of its budget phone brand Honor to a consortium of 30 dealers led by a company backed by the Shenzhen government.

The second source said the all-cash sale fetched more than 100 billion yuan ($15.5 billion). Honor declined to comment.

The Honor sale was aimed at keeping the budget brand alive, as sanctions slapped on Huawei by the United States had hampered the unit’s supply chain and cut off the company’s access to key hardware like chips and software such as Alphabet Inc’s Google Mobile Services.

Huawei may have a similar objective in pursuing the sale of the mobile brands. The two sources said that Huawei’s latest plans for the two high-end brands were motivated by insufficient chip supplies.

Washington says that Huawei is a national security threat, which Huawei has repeatedly denied.

On Friday, Honor indicated that the goal of the spin-off had been reached by announcing it had formed partnerships with chip makers such as Intel and Qualcomm and launched a new phone.

Last year, the company’s Consumer Business Group Chief Executive Richard Yu said U.S. restrictions meant Huawei would soon stop making Kirin chips. Analysts expect its stockpile of the chips to run out this year.

Huawei’s HiSilicon division relies on software from U.S. companies such as Cadence Design Systems Inc or Synopsys Inc to design its chips and it outsources the production to Taiwan Semiconductor Manufacturing Co (TSMC), which uses equipment from U.S. companies.

The P and Mate phone series are among the top players in the higher-end smartphone market in China and compete with Apple’s iPhone, Xiaomi Corp’s Mi and Mix series and OPPO’s Find series.

The two brands contributed nearly 40% to Huawei’s total sales over the third quarter of 2020, according to market research firm Counterpoint.

Analysts have already noted recent insufficient supplies of the flagship P40 and Mate40 series due to a severe components shortage.

“We expect a continuous decline in sales of P and Mate series smartphones through Q1 2021,” said Flora Tang, an analyst at Counterpoint.

Reporting by Julie Zhu, Yingzhi Yang and David Kirton, Additional reporting by Brenda Goh; Editing by Sumeet Chatterjee & Shri Navaratnam

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January 25, 2021 at 03:16PM
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