United States

US Blacklists More Chinese Tech Companies Over National Security Concerns (nytimes.com) 82

The Trump administration added five Chinese entities to a United States blacklist on Friday, further restricting China's access to American technology and stoking already high tensions as President Trump and President Xi Jinping of China prepare to meet in Japan next week. From a report: The Commerce Department announced that it would add four Chinese companies and one Chinese institute to an "entity list," saying they posed risks to American national security or foreign policy interests [Editor's note: the link may be paywalled; alternative source]. The move essentially bars the entities, which include one of China's leading supercomputer makers, Sugon, and a number of its subsidiaries set up to design microchips, from buying American technology and components without a waiver from the United States government.

The move could all but cripple these Chinese businesses, which rely on American chips and other technology to manufacture advanced electronics. Those added to the entity list also include Higon, Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, and Wuxi Jiangnan Institute of Computing Technology, which lead China's development of high performance computing, some of which is used in military applications like simulating nuclear explosions, the Commerce Department said.
Each of the aforementioned companies does businesses under a variety of other names.
Government

Senator Rubio Targets Huawei Over Patents (reuters.com) 178

hackingbear writes: While intellectual property violation is a major accusation against China in the on-going US-China trade war, U.S. Senator Marco Rubio filed legislation on Monday that would prevent Huawei from seeking damages in U.S. patent courts, after the Chinese firm demanded that Verizon Communications 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.
China

Huawei Says US Ban Hurting More Than Expected, To Wipe $30 Billion Off Revenue (reuters.com) 172

China's Huawei 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. From a report: 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. [...] 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.
Government

Cellebrite Says It Can Unlock Any iPhone For Cops (wired.com) 132

An anonymous reader quotes a report from Wired: On Friday afternoon, the Israeli forensics firm and law enforcement contractor Cellebrite publicly announced a new version of its product known as a Universal Forensic Extraction Device or UFED, one that it's calling UFED Premium. In marketing that update, it says that the tool can now unlock any iOS device cops can lay their hands on, including those running iOS 12.3, released just a month ago. Cellebrite claims UFED Premium can extract files from many recent Android phones as well, including the Samsung Galaxy S9. No other law enforcement contractor has made such broad claims about a single product, at least not publicly. The move signals not only another step in the cat and mouse game between smartphone makers and the government-sponsored firms that seek to defeat their security, but also a more unabashedly public phase of that security face-off. "Cellebrite is proud to introduce #UFED Premium! An exclusive solution for law enforcement to unlock and extract data from all iOS and high-end Android devices," the company wrote on its Twitter feed for the UFED product. On a linked web page, the company says the new tool can pull forensic data off any iOS device dating back to iOS 7, and Android devices not just from Samsung but Huawei, LG, and Xiaomi.
Technology

Huawei Delays Foldable Phone Launch Until September To Do Extra Tests After Samsung's Troubles (cnbc.com) 26

Huawei said its foldable phone will launch in September, slightly later than it was reportedly set to, as it does extra tests following the debacle Samsung went through with its rival device. From a report: A spokesperson for the Chinese technology giant told CNBC on Friday that the company is trying to launch the Huawei Mate X globally, focusing on markets that are rolling out next-generation mobile networks known as 5G. The Mate X, which starts at around 2,299 euros or roughly $2,600, is a 5G-capable device. The Mate X was unveiled in February but has yet to go on sale. Huawei had initially targeted a mid-2019 launch date and in April, Chinese media reported that it was looking at June. But the spokesperson confirmed the official launch will take place in September. He said that the company was doing extra testing with mobile carriers around the world and developers to make sure their apps work when the device is fully unfolded. Huawei's spokesperson said the company was more "cautious" after Samsung's foldable device, the Galaxy Fold, began to break when tested by reviewers in April.
Advertising

Huawei Started Serving Ads On Phone Lock Screens Without Asking Users' Permission (digitaltrends.com) 71

Huawei is reportedly displaying advertisements on the lock screen of its smartphones, seemingly without warning or any sort of announcement. Huawei says that it's doing no such thing. "The ads are not initiated by Huawei. We encourage individuals to check app settings, or follow publicly available directions on how to remove lock screen ads," Huawei said in a statement to Digital Trends. From the report: According to Huawei, the ads are stemming from some third-party services or apps, and not from Huawei itself. For comparison, Huawei pointed to a similar issue that affected Samsung phones about a year ago. That said, it doesn't seem to add up -- after all, the ads are being placed in Huawei's Magazine cycle of wallpapers, and it seems highly coincidental that a number of Huawei users would all experience the same issue on the same day without users of other phones running into the same problem.

A number of users on Reddit reported finding advertisements on their lock screen. One user, who goes by the username Quacksnooze, posted a screenshot of a Booking.com ad that suddenly appeared on their phone. Other users reported getting ads as well. According to the Reddit thread, four images related to Booking.com were added to the Huawei phone's wallpaper rotation, meaning that they would start showing up as wallpapers like any other image. The images could be manually deleted, but it's possible more could be added in the future. You can also get around the issue by not using Huawei's Magazine lock screen wallpaper, but that's a bit of a frustrating solution.

Verizon

Huawei Asks Verizon To Pay Over $1 Billion For Over 230 Patents (reuters.com) 184

hackingbear writes: Huawei has told Verizon that the U.S. carrier 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, a person briefed on the matter said on Wednesday. Verizon should pay to "solve the patent licensing issue," a Huawei intellectual property licensing executive wrote in February, the Wall Street Journal reported earlier. The patents cover network equipment for more than 20 of the company's vendors including major U.S. tech firms but those vendors would indemnify Verizon, the person said. Some of those firms have been approached directly by Huawei, the person said. The patents in question range from core network equipment, wireline infrastructure to internet-of-things technology, the Journal reported. The licensing fees for the more than 230 patents sought is more than $1 billion, the person said. Huawei has been battling the U.S. government for more than a year. 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.
Businesses

Huawei Says It's Scrapping Laptop Launch Because of US Blacklisting (cnbc.com) 95

Huawei has ditched a product launch for the first time since the US placed it on a trade blacklist. From a report: Richard Yu, CEO of Huawei's consumer division, told CNBC that the firm had formally planned to launch a new product in its Matebook series without giving a date, but it had been indefinitely put on hold. He said that being on the U.S. Entity List, which restricts American companies from selling products to Huawei, had caused the cancellation. "We cannot supply the PC," Yu said, adding that the situation is "unfortunate." When asked if the laptop could be launched at a later date, Yu said it "depends on how long the Entity List will be there." He acknowledged that, if Huawei is on the blacklist for a long time, the laptop will not be able to be launched.
Android

Huawei is Reportedly Asking App Developers To Publish on its AppGallery (cnet.com) 70

Huawei is reportedly inviting Google Play Store developers to publish apps for the Huawei EMUI AppGallery, a month after it was reported that future Android handsets from the Chinese group won't support Google Play Store. From a report: An anonymous developer on Monday showed the email to XDA Developers, with Huawei apparently sending out invitations to join AppGallery and saying it has 270 million monthly active users across 350 million phones, and a community of 560,000 developers. "In order to guarantee a smooth usage of your app for our users, Huawei is committed to provide you with full support, to help you publish your app into AppGallery," the emailed invitation reportedly says. It also offers access to join the Huawei Developer portal for free, XDA Developers reported.
China

Some Big Tech Firms Cut Employees' Access To Huawei, Muddying 5G Rollout (reuters.com) 58

Some of the world's biggest tech companies have told their employees to stop talking about technology and technical standards with counterparts at Huawei in response to the recent U.S. blacklisting of the Chinese tech firm, Reuters reported Monday, citing people familiar with the matter. From a report: Chipmakers Intel and Qualcomm, mobile research firm InterDigital and South Korean carrier LG Uplus have restricted employees from informal conversations with Huawei, the world's largest telecommunications equipment maker, the sources said. Such discussions are a routine part of international meetings where engineers gather to set technical standards for communications technologies, including the next generation of mobile networks known as 5G.

The U.S. Department of Commerce has not banned contact between companies and Huawei. On May 16, the agency put Huawei on a blacklist, barring it from doing business with U.S. companies without government approval, then a few days later it authorized U.S. companies to interact with Huawei in standards bodies through August "as necessary for the development of 5G standards." The Commerce Department reiterated that position on Friday in response to a question from Reuters.

Android

Smartphone Shipment Forecast Cut To 1.35 Billion For 2019 as Uncertainty Prevails (canalys.com) 44

Research firm Canalys: Canalys released its updated global smartphone forecasts on 28 May 2019. The latest numbers show that smartphone shipments will reach 1.35 billion units in 2019, a year-on-year decline of 3.1%. Due to the many uncertainties surrounding the US/China trade talks, the US Executive Order signed on 15 May and subsequent developments, Canalys has lowered its forecasts to reflect an uncertain future. Canalys' base assumption is that restrictions will be imposed stringently on Huawei, once the 90-day reprieve expires, having a significant impact on its ability to roll-out new devices in the short term, especially outside of China. Canalys anticipates that Huawei is taking steps to mitigate the effect of component and service supply issues, but its overseas potential will be hampered for some time. The US and China may eventually reach a trade deal to alleviate the pressure on Huawei, but if and when this will happen is far from clear.
Android

Facebook Suspends App Pre-installs on Huawei Phones (reuters.com) 59

Facebook 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 U.S. ban on its purchase of American parts and software. From a report: 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 longer be able to have Facebook, WhatsApp and Instagram apps pre-installed. 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 declined to comment and Booking did not respond to a request.
Google

Google Warns of US National Security Risks From Huawei Ban (ft.com) 119

Google has warned the Trump administration it risks compromising US national security if it pushes ahead with sweeping export restrictions on Huawei [Editor's note: the link may be paywalled; alternative source], as the technology group seeks to continue doing business with the blacklisted Chinese company. Financial Times: Senior executives at Google are pushing US officials to exempt it from a ban on exports to Huawei without a licence approved by Washington, according to three people briefed on the conversations. The Trump administration announced the ban after the US-China trade talks collapsed, prompting protests from some of the biggest US technology companies who fear they could get hurt in the fallout.

Google in particular is concerned it would not be allowed to update its Android operating system on Huawei's smartphones, which it argues would prompt the Chinese company to develop its own version of the software. Google argues a Huawei-modified version of Android would be more susceptible to being hacked, according to people briefed on its lobbying efforts. Huawei has said it would be able to develop its own operating system "very quickly."

Businesses

IEEE Is No Longer Banning Huawei Scientists From Peer-Reviewing Papers (ieee.org) 79

AmiMoJo writes: After initially banning Huawei scientists from reviewing papers submitted to the IEEE, the organization contacted the U.S. Department of Commerce seeking clarification. Based on new information, the IEEE has decided that it can still allow Huawei employees to participate in the review process. The IEEE statement reads in part: "IEEE has received the requested clarification from the U.S. Department of Commerce on the applicability of these export control restrictions to IEEE's publication activities. Based on this new information, employees of Huawei and its affiliates may participate as peer reviewers and editors in our publication process. All IEEE members, regardless of employer, can continue to participate in all of the activities of the IEEE.

Our initial, more restrictive approach was motivated solely by our desire to protect our volunteers and our members from legal risk. With the clarification received, this risk has been addressed. We appreciate the many questions and comments from our members and volunteers around the world and thank them for their patience as we worked through a legally complex situation."
China

Following US Huawei Ban, China Threatens Own Blacklist For Foreign Firms (techcrunch.com) 187

Odds of the U.S. and China cooling off their trade war further diminished on Friday after the world's most populous nation said it would create a list of "unreliable" foreign firms of its own. From a report: Gao Feng, a spokesman of China's commerce ministry, said today that the nation will create an "entity list" that will include, in part, foreign companies that have stopped or curtailed their businesses with Chinese firms. "Foreign enterprises, organizations or individuals that do not comply with market rules, deviate from a contract's spirit or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises, will be included on a list of 'unreliable entities,'" he was quoted as saying by state-owned local media. The retaliation comes weeks after the U.S. Commerce Department enlisted Huawei and 68 affiliates in an entity list over national security concerns, thereby requiring American companies to take approval from the government before conducting business with Chinese firms.
China

Huawei a Key Beneficiary of China Subsidies That US Wants Ended (afp.com) 195

From a report: A replica of the Palace of Versailles, medieval turrets, and spires rise across Huawei's new campus in southern China, a monument to the telecom giant's growing fortune -- and the benefits of state aid. The fairytale-like facilities rest on land that was sold by the local government at cut-rate prices to woo and bolster a strategic, high-tech company like Huawei. It is the kind of government largesse that has fanned US frustrations at China's industrial policies -- subsidies are a sticking point in protracted trade talks between the world's top two economies.

Huawei has become a major flashpoint in the trade war, with President Donald Trump taking steps to block the company's dealings with US companies, threatening its global ambitions. With the dispute shining a spotlight on China's technological shortcomings, the subsidies are a window into the kind of measures Beijing may step up as trade negotiations founder. Huawei's annual reports and public records show that it has received hundreds of millions of dollars in grants, heavily subsidised land to build facilities and apartments for loyal employees, bonuses to top engineers, and massive state loans to international customers to fund purchases of Huawei products. [...] Over the past 10 years, Huawei has received 11 billion yuan ($1.6 billion) in grants, according to its annual reports.

China

IEEE Bans Huawei From Peer-Reviewing Papers, Chinese Scientists Quit To Protest (sciencemag.org) 172

New submitter AntiBrainWasher writes: Running away from the fear of legal/political persecution, the New York City-based Institute of Electrical and Electronics Engineers (IEEE) told editors of its roughly 200 journals yesterday that it feared "severe legal implications" from continuing to use Huawei scientists as reviewers in vetting technical papers. They can continue to serve on IEEE editorial boards, according to the memo, but "cannot handle any papers" until the sanctions are lifted. The IEEE ban has sparked outrage among Chinese scientists on social media. "I joined IEEE as a Ph.D. student because it is recognized as an International academic platform in electronics engineering," wrote Haixia (Alice) Zhang of Peking University in Beijing in a letter to IEEE leadership. "But this message is challenging my professional integrity. I have decided to quit the editorial boards [of two IEEE journals] until it restores our common professional integrity."

Meanwhile, the SD and Wi-Fi Alliance reinstated Huawei as a member, less than a week after they quietly removed the company from its membership list. Despite the lack of evidences, U.S. officials have alleged that the Chinese government could use equipment manufactured by Huawei, which is a global supplier of cellphones and wireless data networks, to spy on users or disrupt critical infrastructure, similar to what the NSA has done.

The Courts

Huawei Asks Court To Declare US Government Ban Unconstitutional (engadget.com) 144

Huawei is stepping up its fight against American bans. From a report: The tech giant has motioned for a summary judgment in its lawsuit to invalidate Section 889 of the 2019 National Defense Authorization Act, arguing that it violates the "Bill of Attainder, Due Process and Vesting" clauses of the US Constitution. The law explicitly bans Huawei by name despite "no evidence" of a security risk, Huawei's Song Liuping said, and bans third-party contractors who buy from Huawei even when there's no link to the US government. The company also preemptively tried to dismiss claims that there are facts up for dispute. This is a simple "matter of law," according to lead counsel Glen Nager.
Businesses

Huawei's Ace In the Hole: Undersea Cables (nikkei.com) 107

While the United States is banning the use of Huawei equipment from its fifth-generation infrastructure, the Chinese telecommunications company is working to expand its share in the undersea cable market, which is dominated by the U.S., Europe and Japan. Nikkei Asian Review reports: About a decade ago, Huawei entered the business by setting up a joint venture with British company Global Marine Systems. It expanded its presence by laying short links in regions like Southeast Asia and the Russian Far East. But last September, Huawei surprised industry executives in Japan, the U.S. and Europe by completing a 6,000 km trans-Atlantic cable linking Brazil with Cameroon. This showed Huawei has acquired advanced capabilities, even though it is still far behind the established players in terms of experience and cable volume.

During the 2015-2020 period, Huawei is expected to complete 20 new cables -- mostly short ones of less than 1,000 km. Even when these are finished, Huawei's market share will be less than 10%. Over the long term, however, the company could emerge as a player to be reckoned with. Huawei is estimated to be involved in around 30 undersea cable projects at the moment. It also reportedly has a hand in about 60 projects to enhance cable landing stations to boost transmission capacity. The reality is, even if the U.S. succeeds in shutting out Huawei from 5G networks in major countries, the Chinese company could still thwart American efforts to maintain leadership in handling global data traffic.
The report goes on to say that the U.S., Japan and Australia are working to address this potential threat. "Steps they are considering include banning Huawei from laying cables connected to one of the three countries, and urging other governments to prevent the company from getting involved in the construction of any major cables Informed sources."
Android

Huawei's Android Replacement OS Will Launch in June, Company Exec Says (techradar.com) 72

Huawei's home-grown operating system -- codenamed HongMeng -- that's set to replace Android once the Huawei ban from Google comes into full effect, will be commercially rolled out next month, a Middle East head for the firm revealed exclusively to TechRadar Middle East. From a report: On May 20, Google announced that it would partially cut off Huawei devices from its Android operating system but was given an extension till August 19 by the US White House. "Huawei knew this was coming and was preparing. The OS was ready in January 2018 and this was our 'Plan B'," said Alaa Elshimy, Managing Director and Vice President of Huawei Enterprise Business Group Middle East. "We did not want to bring the OS to the market as we had a strong relationship with Google and others and did not want to ruin the relationship. Now, we are rolling it out next month."

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