Huawei claims that it is selling its foldable MateX phone in China at about 100,000 per month even though cost is about $2,400 US

Huawei claims that its foldable MateX phone is selling 100,000 a month a good pace especially since the phone is for sale only in China at present and costs about $2,400 US.

Mate X sales may be close to those of Samsung's Galaxy fold

Originally Samsung said it had sold one million units of the Galaxy fold but this was later revised downwards by a large amount ask reported by Verge: Update, 12:52PM ET, December 13th, 2019: After the original publication of this article, Samsung has since clarified to Korea’s Yonhap News Agency that it hasn’t actually sold one million Galaxy Fold devices, despite what executive Young Sohn said on stage earlier this week. Yonhap says a company spokesperson “said Sohn may have confused the figure with the company’s initial sales target for the year, emphasizing that sales of the tech firm’s first foldable handset have not reached 1 million units.” The company did not clarify how many Galaxy Fold devices have been sold, but it earlier said that it targeted 500,000 units for this year." At the Consumer Electronics Show CES 2020 Samsung said it had sold 400,000 to 500,000 since its release last September. At 100,000 per month Huawei is selling quite close to the rate of the Galaxy fold last year.

Huawei and Samsung front-runners in race to make a foldable phone

At CES 2019 there were plenty of foldable prototype phones but Samsung beat most top competitors when it release the Galaxy Fold in September. Microsot's Duo and Motorola's Razr are not due out until later in 2020.

Huawei's Mate X was originally due to be launched in July last year. However after Samsung delayed its own launch following production problems, Huawei decided to refine and improve its foldable screen so put off its launch too until November.

Huawei has yet to announce a date for launching the Mate X outside of China. However, it had said previously that it was expected to begin sales in Europe in the first quarter of 2020. Half of the phone screen flips around back so when it is folded closed it has a screen on both sides of the phone. The second version of the Mate X is expected to be shown at the Mobile World Congress MWC 2020 in February.

Foldable smart phones now followed by foldable laptops

At the CES this year Lenovo revealed its foldable laptop the ThinkPad X1. Verge editors named it the best in show for CES 2020. In the coming months more such laptops are expected to be announced.

At this year’s CES, the foldable trend expanded beyond phones to laptops. The Verge’s editors named the Lenovo ThinkPad X1 Fold its best in show for CES 2020, with expectations that there will be more foldable laptops in the coming months. The price will be a whopping $2,499 and it is expected to ship this summer. The appended video shows and reviews the Mate X.

Previously published in the Digital Journal

US Federal Communications Agency bans use of federal funds to purchase equipment from China's Huawei

(November 23, 2-19) The US Federal Communications Commission (FCC) in a unanimous vote has blocked US telecom companies from using any federal funds to buy Huawei equipment.

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The new regulations

Wireless carriers will be unable to use money from the Universal Service Fund (USF) to make any purchases from many companies that are considered a national security risk. The USF provides billions of dollars in subsidies to offer wireless service throughout the US. The vote has initially named two Chinese telecom companies as national security threats Huawei and ZTE.

FCC chair Ajit Pai said: "Given the threats posed by Huawei and ZTE to America’s security and our 5G future..this FCC will not sit idly by and hope for the best.”

Huawei's problems in the US

US lawmakers and intelligence officials have claimed that Huawei could be used for espionage. An article in the Verge shows the wide variation of views on the degree to which Huawei is a security risk. Huawei has not only denied there are any security threats but has launched a suit against the US government claiming the ban on its products is unconstitutional: "Huawei’s response has been simple: it’s not a security threat. Most importantly, the company’s leaders have said the US has not produced evidence that it works inappropriately with the Chinese government or that it would in the future. Moreover, they say, there are ways to mitigate risk — ones that have worked successfully in other countries. Huawei’s chairman has even gone so far as to call the US government hypocritical, criticizing China while the National Security Agency spies around the globe. The company has also denied any criminal wrongdoing."

A Huawei spokesperson complained that the FCC had designated Huawei a national security threat "based on selective information, innuendo, and mistaken assumptions": “Huawei believes this order is unlawful as the FCC has singled out Huawei based on national security, but it provides no evidence that Huawei poses a security risk.”

Trump blocks US businesses from doing business with Huawei

The Trump administration banned US businesses from doing business with Huawei without a licence back in May but the application of the ban was postponed until August as reported by Reuters: "...the Commerce Department granted Huawei a license to buy U.S. goods until Aug. 19 to maintain existing telecoms networks and provide software updates to Huawei smartphones, a move intended to give telecom operators that rely on Huawei time to make other arrangements."

Wilbur Ross gave another 90-day extension in August. The extension was about to run out when another extension was granted. If another extension is not granted the regulation will go into effect on February 16th 2020.

Rural carriers worry about Huawei ban

Rural US carriers complain that Huawei provides affordable equipment that they rely on. However the FCC is likely to go further and vote on a proposal that would require all wireless carriers that use Huawei equipment to fully remove it from their networks. The argument is that if the equipment poses a threat it should be removed not just the subsidy. However, the Rural Wireless Association said the costs to make any such change would be quite significant across the board.

Previously published in the Digital Journal

High-priced Huawei Mate X foldable phone sells out in flash sale in China

(November 16, 2019) Huawei's new foldable Mate X was originally to be launched in June, then September, and finally some time in November. On November 16 the Mate X officially went on sale in China.

The Mate X is the second foldable smartphone to enter the market since the Samsung Galaxy Fold.

Mate X lacks Google's Android apps and Microsoft chips

The Mate X will be released without Google apps or Microsoft chips as a recent article reports: "Chinese tech giant Huawei is selling its first folding smartphone without Google apps or US-made processor chips following sanctions imposed by Washington.The Mate X, which unfolds to 14.6 centimetres (5.8 inches) wide, went on sale Friday on Huawei’s online store in China priced at 16,999 yuan ($2,422). It competes with Samsung’s Galaxy Fold launched in September."

The Mate X

The Mate X stands out among foldable phones as its folding screen in on the outside of the device. Competitors Galaxy Fold and Motorola Razr have internally folding screens. The Mate X has a 6.6 inch screen on the front and a 6.38 inch screen on the back when folded. When unfolded its screen is 8 inch diagonally.

The phone is also equipped with 5G, the Kirin 980 processor and a dual-celll 4,500 battery. The steep price is explained by all this tech.

In spite of the high price the Mate X sold out in minutes in a flash sale according to a recent report: ""Well, the company did offer a limited number of devices in China, but the Mate X 5G sold out in less than a minute. This was a flash sale, of course, and it was expected that it will be out of stock soon after it went on sale. Huawei confirmed that the next sale of the Mate X 5G is scheduled for November 22. So, those users who did not get a chance to purchase it today, will have another chance next Friday."

No dates yet for a Mate X release in other countries

Even in China the Mate X has only been on sale in its online store. In October Huawei said a global launch plan is under review but nothing has been confirmed since then. Given that Huawei is under heavy scrutiny by the US government for security concerns the phone may never be available in the US.

Previously published in the Digital Journal

Huawei announces new smart phones will be shipped without Google apps and services

Huawei has just announced its latest Mate 30 Pro handset but it cannot be shipped with Google apps and services preinstalled as Huawei is blacklisted by the US government so that US companies cannot do business with the company.

The US blacklist

A recent article describes the Entity List: "The US government added Huawei Technologies to a trade blacklist earlier this month, restricting the Chinese telecommunications equipment maker’s ability to buy hardware, software and services from American hi-tech suppliers. That US blacklist, officially called the Entity List, identifies organisations and individuals believed to be involved, or pose a significant risk of becoming involved, in activities contrary to America’s national security or foreign policy interests"

There are 143 Chinese entities on the list. However, this is far behind Russia that has 317 entities listed.

Negative effects of the US Entity List

A recent BBC article notes: "The Mate 30 and Mate 30 Pro both lack YouTube, Google Maps and Gmail among other software. They also do not feature Google's Play Store, which is the normal way users outside China install third-party software on to Android 10 phones."

Richard Yu, CEO of Huawei's consumer products division revealed at a press event in Germany this morning that Huawei has been forced to drop Google's Mobile Services (GMS) license for the all the Mate 30 series of devices. Yu explained: “We cannot use the Google Mobile Services core, we can use the Huawei Mobile Services (HMS) core. Today that’s because of a US ban that these phones cannot preinstall the GMS core, it has forced us to use the HMS Core running the Huawei app gallery on the Mate 30 series phones.”

Huawei creating its own alternatives to Play Store apps

The Google Play Store is an essential part of Google Mobile Services licences. Outside of China it is the main way that customers obtain access to apps. It is rather difficult to get around this requirement so Huawei is attempting to build alternatives to the Google Play Store as well as its associated services. This will take some time and money. Huawei is spending $1 billion to produce its own Huawei Mobile Services. There are already 45,000 apps associated with Huawei Mobile Services but many thousands more need to be made available in Huawei's App Gallery. This is a huge task but the company has no other alternative.

Way around the restrictions are problematic

There are some faint hopes that the US ban could be reversed. Alternatively perhaps there are ways that Huawei can work around the restrictions. There are reports that Huawei could offer its own interface to allow access to some Google apps but it is not clear how many will be available or even how Huawei hopes to achieve this.

Meizu a Chinese manufacturer of smartphones, had apps that included a "Google Installer" app that could sideload key Google services and also the Play Store onto its handsets. However, Google has been cracking down on this and has been even experimenting with blocking non-certified devices from accessing its apps and services.

In markets such as Europe and others outside of China remains to be seen if customers will continue to purchase Huawei phones even though they lack key Google apps and services. However, the US ban will also serve to motivate Huawei and other Chines and Russian companies to replace US technology with their own. The US ban will also deprive many US companies of profitable markets in China.

Previously published in the Digital Journal

US ban on Huawei causing problems for the release of Huawei's new Mate 30 smart phone

Due to the US ban on US companies doing business with Huawei, the Huawei Mate 30 phone due to be released this fall will not be able to incorporate Google apps and services features that are prized by many.

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New Huawei phones will be limited

The new phones can still run the Android system but only the open source version. However, the new Mate 30 and Mate 30 Pro will not be shipped with Google's apps and Google services included. This will place Huawei at a great disadvantage in competition with other phones that have the apps and services.

No doubt developments will encourage Huawei to modify its own operating system and eventually to replace Google's Android OS. However, for the present Huawei intends to keep Google and has no plans for a smartphone that uses its newly released Harmony OS although it is planning a smart watch with the system. The two new Huawei smart phones are rumored to be launched on September 18.

The Trump ban can be found in its entirety here.

Recent extensions from the effects of the Trump ban will not help the new phones

Back in May the US Commerce Department provides a three month extension before the ban would take effect. This allowed time for Huawei to provide software updates and patches, to existing Huawei phones. This extension applies only to phones available to the public on or before May 16 this year. Just last week a second 90 day extension was announced but it will still apply only to phones already released. When the two new phones are released they will not fall under the extensions.

A recent Reuters article sums up the situation: "A Google spokesman told Reuters the Mate 30 cannot be sold with licensed Google apps and services due to the U.S. ban on sales to Huawei. A temporary reprieve that the U.S. government announced last week does not apply to new products such as the Mate 30, the spokesman said."

In markets outside of China the absent apps and services are crucial

Google apps and services including the immensely popular Google Play Store are key additions to the whole Android operating system. In China the apps and services are not offered in any event so their absence will not affect sales there. However, elsewhere in the world new phones from China will face competitors who offer the prized Google Play Store and other apps and services.

Huawei working on an alternative to Play store

Huawei has been working on an alternative to Play Store since 2018 in anticipation of a situation such as is happening now. However, the company will have an uphill battle. Large US companies will not be able to offer apps for the store since this would no doubt violate the US ban.

US actions could be counter-productive

US actions will force Huawei to be more self-reliant on itself and other Chinese firms, or at least non-US companies for its parts. The US is creating a situation in which it is losing a huge market for US multi-nationals and at the same time encouraging the Chinese government to develop more suppliers in China and other countries to replace them. Trump's attempt to Make America Great Again may actually hurt the US economy and slow down the process of globalization which it could be argued is what has made the American economy so successful. China may become the leader of continued globalization.

Formerly published in the Digital  Journal

China's Huawei developing its own mapping service

(August 18) The state-run news outlet China Daily claims Huawei is developing a mapping service. The service is apparently designed for software developers. Apps that offer navigation or ride-hailing services could use Huawei technology instead of making their own.

The service is called Map Kit

Huawei executive, Zhang Pingan said: "Huawei Map Kit will be available in 40 languages. It will offer real-time traffic conditions and a highly sophisticated navigation system which can recognize a car changing lanes. It will also support augmented-reality mapping." It is not clear exactly what "augmented reality mapping'' is.

The report does not give many clues as to where Huawei will get its mapping data. The report says Map Kit will be connected to local mapping services.

One source claimed that Huawei would partner with Yandex a Russian Internet Service giant that already provides maps and mapping services. The director general of a telecom industry association said that China has telecom base stations that can provide complementing information to satellite positioning data.

The China Daily source also claims that Huawei will partner with Booking Holdings. However Booking relies on Google Maps for its online travels service so probably it will be only a customer rather than providing data. No doubt Google would not supply data for Huawei or it could violate US trade restrictions.

Maps development is expensive and Google is the one big success

Google Maps was launched way back in 2005 and Google (Alphabet) has invested heavily ever since. This included buying Waze for $996 million in 2013. Google has its own fleet of cars driving up and down streets in many countries to help create maps.

Apple has tried its hands at maps since 2012 but it botched it launch and has been playing catchup to Google. Nokia also offered maps for a number of years before selling out to a consortium of German auto makers for more than $3 billion in 2015. It is used in Microsoft's Bing Maps.

The report claims the Map Kit will be unveiled this October, will cover 150 “countries and regions,” and will be available in 40 languages.

US restrictions on trade with Huawei

A Huawei official notes the negative effect US bans have hand on sales: "Yu Chengdong, CEO of Huawei's consumer business group, said the US government restrictions reduce the annual shipment forecast of its smartphones from about 300 million units to around 240 million units in 2019."

For now Huawei is still using Android as an operating system for its phones but it is not clear how long it will be able to continue to do so. This is encouraging Huwei to develop its own operating system Harmony OS. So far it has been released for use in a smart TV but perhaps it could be modified for use in its phones if necessary should Android be no longer available.

Previously published in the Digital Journal

Huawei unveils its new Harmony operating system in a smart TV

(Ausut 12)The Chinese telecom giant Huawei that has been entangled in the trade war between China and the US unveiled its new HarmonyOS that will be used in a new smart television the first device to use its own new system.

The mid-range brand TV will be available this week in China

The smart TV will be available as of Thursday in China. The smart TV is part of the mid-range Honor line, according to line chief executive George Zhao.

The new HarmonyOS was revealed last Friday. A recent article describes it as an alternative operating system for phones and other smart devices, and a response to US sanctions which could prevent Huawei from using Android technology.

The new system may not be readily usable for smart phones

A story from Xinhuanet claims that the new operating system, which the company calls Hongmeng in China, is not designed for smart phones and that Huawei intends to continue using the Android operating system: "Huawei board member and senior Vice President Catherine Chen said here on Thursday that the company's Hongmeng operating system is not for smartphones and the company intends to continue to use Google's Android operating system for its smartphones."

The new system has constantly been described in the media as being a possible replacement for the Android system. Chen said the new system was for industrial use and had been in production long before questions of finding an alternative for Android. She noted that operating systems for smartphones contain millions of codes whereas Hongmeng has only hundreds of thousands. The company claims this makes the new OS much more secure. The Hongmeng system also has extreme low latency compared with a smartphone operating system Chen added.

The ban on Huawei

Although US companies are theoretically banned from selling technology products such as Android to Huawei, a three-month exemption was provided. The exemption ends soon, and unless it is extended, the exports will have to stop. Huawei may be stockpiling components, but eventually it may need to replace the android system. Given that the system can be used to power a smart TV perhaps it can be modified to work in other devices such as smartphones.

The ban will hurt not only Huawei, but companies that make substantial profits from supplying Chinese companies such as Huawei with significant parts. The US may decide that globalization of their multi-nationals is more important than the US-China trade dispute. However, the Trump administration tends to use tariffs and bans as levers to try and get the deals that it wants. Instead it may create lose-lose situations.

Huawei regarded as a security risk by the US

The US may consider Huawei most important as a security risk. If the security risk is actually considered that important, the US may not consider lifting the ban as part of a trade agreement. However, it could allow Huawei to continue to use US parts but not allow US agencies to use Huawei equipment including their 5G technology. Huawei denies that it has any connections with Chinese intelligence. The company is owned by its workers according to the company, but critics deny it. Wikipedia notes in part: "Huawei maintains it is an employee-owned company. Ren Zhengfei retains approximately 1 percent of the shares of Huawei's holding company, Huawei Investment & Holding, with the remainder of the shares held by a trade union committee (not a trade union per se, and the internal governance procedures of this committee, its members, its leaders or how they are selected all remain unknown).

Trump official says blacklisting of Huawei not related to trade war with China

The head of Trump's cybersecurity and foreign privacy policy says the US stand blacklisting Huawei Technologies for security reasons is not related to the ongoing trade war between the two countries.

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Stayer's statement

Robert Stayer, of the US State Dept., the deputy assistant secretary of cyber and international communications and information policy, said to BNN: “We need to make sure that people do not think this is part of a trade war [or] trade discussions.This is about our national security.”

US Congress wants Huawei restrictions kept

Both the US House of Representatives and the Senate have introduced bills to keep the restrictions in place on Huawei and that the company remains blacklisted from doing business with the US. As Bloomberg reports: "A bipartisan group of U.S. Senate and House lawmakers unveil legislation that would bar removal of Huawei from the Trump admin.’s “technology blacklist” without an act of Congress."

Trade talks ongoing but Huawei issue should be separate

US senior officials confirmed that Steven Mnuchin the Treasury Secretary and Robert Lighthizer the US Trade Representative spoke over the phone to their Chinese counterparts and renewed their efforts to negotiate a deal with the Chinese.

Strayer said: “There are very important issues in those trade discussions, like the improper transfer of intellectual property, joint venture requirements that are going to China. Those are trade issues." He added that it was important that the Huawei issue be kept separate. Strayer added: “I think that as we get out there as diplomats and talk to governments around the world, they’re beginning to understand where we’re coming from and why we’re making ourselves so clear with regard to the future of 5G technology.”

Canada punished for accepting US request

At the request of the US Canada arrested CFO of Huawei Meng Wanzhou in Vancouver last December. The US wants her extradited to the US to face charges having to do with business dealings with Iran that the US sanctions forbid as well as fraud.

As a BBC article in March notes Wanzhou has sued the Canadian government over the arrest: "The chief financial officer of China's tech giant Huawei is suing Canada over her arrest at the request of the US. Meng Wanzhou was held in December at Vancouver airport on suspicion of fraud and breaching US sanctions on Iran. On Friday Ms Meng filed a civil claim against Canada's government, border agency and police for "serious breaches" of her civil rights."

China has responded not only by arresting some Canadians in China but also stopped buying Canadian canola in March and meat products in June causing great harm to trading relationships.

Canada still contemplating using Huawei 5G network

Canada has not made a decision yet whether to allow Huawsei to be involved in its 5G network. Australia, possibly under pressure from the US, decided last August to ban Huawei as well as China's ZTE from being involved in its 5G network.

The UK however has so far been resisting pressure from the US and is undertaking its own analysis of the situation but a report has yet to be finished. However a recent article notes: "In a letter to the government, the Parliamentary Science and Technology Committee said operators did not believe that Huawei’s kit was any less secure and that any ban would give networks less leverage to demand higher security standards from other vendors. It was also concerned that there would be lower competition in the market and that no proof of any vulnerabilities had ever been delivered. It did, however, call for a formal ban of Huawei gear in the core layer of the network – a measure that the leaked report suggested would be enacted by the government."

Trump's softer stance on the UK may influence its own decision

A senior Canadian official said that Trump's softer stance towards allies over the issue of Huawei technologies is a new nuance in the situation as Canada deliberates over the issue. The US has been pressing allies to ban Huwaei from new 5G telecommunications networks. Trump had earlier said not to ban Huawei could limit intelligence sharing with the US. However, he said last week that this would not be necessary with the UK.

Canadian Public Safety Minister Ralph Goodale said: "“Just last week there was another new nuance in this discussion... The president, he said, “indicated that he thought whatever difference of view could be easily worked out.” Asked what he thought Trump meant, the Canadian replied: “I’m anxious to examine that question.”"

Previously published in the Digital Journal

Trump's Huawei ban may be planned as a negotiating tactic

US President Donald Trump met with Xi Jinping the Chinese president as the G20 Summit in Japan wrapped up today. Trump announced after the meeting that the two countries would resume trade talks and hold off implementing new tariffs indefinitely.

Was the Huawei ban just a negotiating tactic?

Trump also indicated that US companies would be allowed to resume sales to Huawei. However, he did not make it clear when or how this will happen. How can these sales resume if Huawei is a huge security threat as Trump claims? He has even used the security threat as a reason to convince other countries not to use Huawei's 5G networks.

Trump's position

In May, Trump signed an executive order allowing the US government to block sales by US companies to foreign firms considered a security risk. This was applied to Huawei. A recent article in Verge quotes Trump explaining his position: "TRUMP: Huawei is something that’s very dangerous. You look at what they’ve done from a security standpoint, from a military standpoint, it’s very dangerous. So it’s possible that Huawei even would be included in some kind of a trade deal. If we made a deal, I could imagine Huawei being possibly included in some form, some part of a trade deal."

Trump claims Huawei's technology could be used for spying in spite of Huawei's denial of this. However, Trump's position makes no sense. If Huawei is so dangerous, it will be no less dangerous after a trade deal. Trump's position makes sense only if Huawei is not as he claims a threat to US security and the ban was used as a bluff and a lever to get a better deal from China.

The Verge article concludes: "Trump’s executive order has caused immense chaos and concern, not just for Huawei but for its suppliers in America and users around the world. He owes those people an honest explanation for why this was done. So far, they haven’t gotten one." Given the way Trump operates it is unlikely that he will ever give such an explanation. No doubt he cannot in any event.

No sign of lifting the ban as yet

So far it is not clear what if any steps Trump has taken to lift the restrictions. According to the Washington Post Trump told reporters that he will be meeting with Huawei officials to ease pressure on Huawei but there has not been a formal decision to lift the ban as yet. On the other hand he told the Wall Street Journal that the two countries will leave what to do about Huawei until the end of the negotiations. This sounds as if Trump is continuing to use the ban as leverage even though it is a bluff to get China to accept a better deal for the US.

China said to make reprieve from ban a condition of further talks

However, China has reportedly made a reprieve from the Huawei ban a condition of returning to the bargaining table. Trump said last month that the US could lift restrictions if there were some forward progress in negotiations with China. Now that there seems to be some progress with talks continuing Trump may say that there will be a reprieve from a ban. However in reality he has done nothing leaving the ban as a threat and leverage in the negotiations.

Meanwhile not only China but many US companies who supply parts for Huawei are being hurt by the Trump. Trump is supposed to be known as a deal maker. Perhaps he should be known as the dirty deal maker.

Previously published in the Digital Journal

Huawei has postponed indefinitely the release of a new laptop

(June 12) Huawei has postponed indefinitely the release of a new laptop that uses Windows as an OS according to the Windows laptop consumer CEO Richard Yu.

The new laptop was set to be announced at CES Asia show

The 2019 Consumer Electronics Show Asia will be held in Shanghahi this week: "Be part of the tech revolution. Experience groundbreaking technology and get in touch with the world’s brightest minds at Asia’s leading tech event. CES Asia is the place where startups, entrepreneurs and global brands converge to form game-changing partnerships. CES Asia 2019 will return to Shanghai, China June 11-13, 2019. The only industry event focused on the Asia-Pacific market will take place at the Shanghai New International Expo Centre (SNIEC) and the Kerry Hotel in Pudong New Area."

The new US trade sanctions are restricting Huawei's ability to use US software such as Microsoft's Windows 10 and Intel processors. Yu said the situation was unfortunate and said that the new product would have been revealed this week but without a release date. Given the problems with the US ban as Huawei is on the US Entity List the company decided not even to announce the product. Unless Huawei is removed from the blacklist the laptop may never see the light of day.

Addition of Huawei to the US Entity List

The Federal Register summarizes the addition of Huawei to the Entity List: "In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding Huawei Technologies Co., Ltd. (Huawei) to the Entity List. The U.S. Government has determined that there is reasonable cause to believe that Huawei has been involved in activities contrary to the national security or foreign policy interests of the United States. BIS is also adding non-U.S. affiliates of Huawei to the Entity List because those affiliates pose a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States. Huawei will be listed on the Entity List under the destination of China. This final rule also adds to the Entity List sixty-eight non-U.S. affiliates of Huawei located in twenty-six destinations: Belgium, Bolivia, Brazil, Burma, Canada, Chile, China, Egypt, Germany, Hong Kong, Jamaica, Japan, Jordan, Lebanon, Madagascar, Netherlands, Oman, Pakistan, Paraguay, Qatar, Singapore, Sri Lanka, Switzerland, Taiwan, United Kingdom, and Vietnam."

Notice 68 affiliates in 26 other countries are also on the list.

Huawei to stop production of laptops

No details of the new laptop have been revealed except that it will be in the MateBook line. In February Huawei announced the Matebook 14 and also updated its well thought of Matebook X Pro line. But neither has shipped as yet.

Digitimes had reported earlier this week that Huawei is actually halting production and development of laptop computers. Microsoft has said nothing about what is happening but has removed Huawei laptops from sale.

Huawei stockpiling parts and technology

Huawei hopes to mitigate the effects of the ban on existing laptops as it has been stockpiling US components of the laptops.

The laptop division is a very small part of the company's total business. However, the laptops had represented the biggest consumer success in the US so far. It was a success too for the US companies who supplied components.

Previously published in the Digital Journal

Huawei signs 5G development deal with MTS Russia's largest mobile operator

(June 6) The gloom surrounding the Chinese telecommunications giant Huawei was somewhat dispelled this week as the company has signed a 5G development deal with MTS Russia's largest mobile operator.

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US policies towards Huawei helps to cement relations between Russia and China

Deal comes as President XI Jinping makes a three-day visit to Moscow. Huawei has just recently been blacklisted by the US. The deal signals closer relationships between Russia and China helped by the US trade war with China. The Huawei ban could be a tactic in the trade war with China as suggested in this article but it no doubt will hurt many US corporations that have lucrative license agreements with Huawei. The deal with MTS unites two main companies within China and Russia

Huawei selling undersea cable business and cutting orders

Huawei has been trying to raise funds after lost revenue. It is planning to sell it undersea cable business. Huawei has also reduced smartphone orders with Foxconn as it has lost its access to Android apps and services. Huawei before shipped its Android phones with preloaded Android proprietary software.

Huawei fails to gain Japan 5G contract

In Japan SoftBank has chosen Nokia and Ericcson to provide their 5G equipment even though Huawei had provided their 4G network. Huawei founder Ren Zhengfei in February boasted: “If the lights go out in the West, the East will still shine [...] America doesn’t represent the world. America only represents a portion of the world.”

The Huawei ban is a lose lose tactic by the US

A recent BBC article notes how both sides are hurt by the Huawei ban: "It will hurt Huawei, which is also the world's second largest smartphone maker, as it gets half of the chips it uses from US suppliers. Meanwhile, US companies could lose a key customer and the development of 5G could suffer given Huawei is such an important player in its development, analysts say. Washington's moves against Huawei are viewed by some as part of a broader strategy to curb China's growing importance in the world. China and the US have also been fighting a trade war over the past year, imposing tariffs on billions of dollars of one another's goods."

Instead of a smooth globalisation process as many US and other global companies would like without political issues creating problems we may end up with feuding trading blocs and more attempts for large countries to become independent of global supply chains except with countries their political systems approve. This is already happening with the US. Will globalised US companies agree or will they push back and demand that the US change course? If US companies agree to drop Chinese markets and not use their technology it may become an also ran against China which is already developing its own phone operating system and with Huawei has an arguably superior 5G system.

Previously published in the Digital Journal

China is going to retaliate against the US in ongoing trade war

(May 31) The trade war between China and the United States appears about to intensify soon, as China is taking steps to retaliated for such measures as the ban on doing business with its telecommunications giant Huawei.

A possible restriction on exporting rare earth metals to the US

One possible response would be restrictions on the export of rare earth metals. An example would be neodymium that is widely used in magnets and in headphones. Most economists and international trade observers claim that the US has no good alternative sources for neodymium.

China produces about 80 percent of the world’s rare earths, and an even higher proportion of the elements in their processed forms.

Racket Hu a researcher at Shanghai Metals Market said in a TV interview: “Currently, it’s still just a possibility that China may ban or do some kind of restrictions. But if it does happen, then we believe prices of rare earths will surge,” This happened before when China curbed exports of rare earths to Japan.

The rare earths are divided into heavy and light based on their atomic weight. The heavy rare earths are less common but are important for lasers, sonar, strengthening steel and other uses.

A recent article notes; "A blockade on the supply of rare earth magnets could have a devastating impact across swathes of the U.S. economy, according to Technology Metals Research LLC. China produces 95% of the world’s output." According to Bloomberg, China will impose the restrictions on rare earths export only if the trade war with the US worsens.

China is also setting up its own black list of "unreliable entities"

A recent article notes: "China will set up a mechanism listing foreign enterprises, organizations and individuals that don’t obey market rules, violate contracts and block, cut off supply for non-commercial reasons or severely damage the legitimate interests of Chinese companies, Ministry of Commerce spokesman Gao Feng said. "Necessary measures will be taken" against those on the list, he said, adding that specifics would be released soon."

Some companies that could be blacklisted

The Chinese state media report is so vague that a large range of US companies could be targeted. These include, Google (Alphabet), Qualcomm Inc.l and Intel Corp. They could also include firms from other countries such as Japan's Toshiba. SoftBank in Japan gave notice it will be building its 5G network using equipment from Nokia and Ericsson. Huawei had been the supplier for the 4G network.

James Yan, a Counterpoint Research analyst said that the blacklist threat put pressure on the US as the US ban on Chinese companies such as Huawei grows. Yan said: “China may pick a few ‘bad examples’ to punish, but it’s unlikely to hit everyone in the supply chain.”

The stock market has had a dismal month in May as shown on the appended video. Trump's trade war with China is no doubt one of the causes of this happening.

Previously published in the DIgital Journal

Huawei can no longer use official SD or micro-SD cards

(May 24) The negative effects of the US ban on Huawei technology are growing worse as the SD Association, the trade group that sets standardized specs for SD and micro-SD cards, has barred Huawei from the Association.

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Removal of Huawei was due to Trump's ban on the company

The SD Association has confirmed to Android Authority that Huawei’s removal from the group was due to Trump’s executive order. MicroSD cards and SD cards will continue to work on existing Huawei hardware, but as it is barred from the SD Association Huawei won’t be able to use the standards on future products.

Other companies have cut ties with Huawei

Google has also cut ties with Huawei after Trump's executive order. Huawei will no longer be able to use Google's Android proprietary apps or services or get updates in its Android phones. This may not be much of a factor in China where most of the apps are not available but those in other markets will be unhappy. The issue is discussed in a recent Digital Journal article. However, this may just encourage Huawei to develop its own operating system which it has been doing for years.

However, chipmakers such as Intel, Qualcomm and others have also dropped ties with Huawei although there is at least one chip firm still doing business with the company. The Wi-Fi Alliance, which sets Wi-Fi standards across the industry, has also “temporarily restricted” Huawei’s membership because of the US ban. Huawei has voluntarily left JEDEC , a semiconductor standards group best that sets RAM specifications, due to the Trump order.

The government ban will hurt US firms too

US firms will lose a huge amount of revenue as they sold an estimated $11 billion worth of components to Huawei last year.

Roger Kay, founder and analyst at Endpoint Technologies Associates said the ban will likely speed up efforts by Huawei and other Chinese firms to develop their own sources of microprocessors and other components. Kay said: "The short-term effect on both American and Chinese companies are inevitably negative. The longer-term effect is that Huawei and other Chinese companies turn away more sharply from American suppliers."

Other countries whose technology the US may view with suspicion could also turn away from US suppliers of parts for their technology as they could face the same difficulties as China. Other firms than those that supply Huawei may find themselves losing Chinese customers. Apple may find that it will lose sales in China a huge market. The Chinese are rallying to the defense of Huawei as reported in a recent Digital Journal article.

Its possible that Trump is using the ban on Huawei as leverage to get a good trade deal with China as he has recently said that Huawei could be part of a deal. However, the result is to disrupt well established trading relationships between US and Chinese firms that no doubt will have long term negative effects on world trade and cooperation.

Previously published in the Digital Journal

Huawei plans to release its own operating system for smart phones and tablets later this year

Huawei is planning to release smartphones and tablets with its own operating system later this year. Huawei has only 90 days before its devices will no longer have access to new software updates, for Google's (Alphabet) Android operating system.

New US trade restrictions for security reasons will block doing business with Huawei except with a government license.

Huawei's plan B

Richard Yu, Huawei's CEO said previously that the company was preparing for the clamp down by the Trump administration with the plan for developing its own operating system and other technology, its plan B. The US has consistently claimed that Huawei the world's second largest smart phone maker after Samsung has secret ties to the Chinese state. However, the US has yet to provide hard evidence of this. A recent Digital Journal article discusses technology security risks and Huawei.

Huawei has yet to publicly confirm that it is launching its own operating system which has been under development for years. However, Chines media it was planning its release this autumn. Yu made his announcement in a private messaging group WeChat according to local media.

US government grants a 90 day temporary licence

The US government granted Huawei a temporary licence to trade with Google and other companies until 19 August. The temporary license is said to be intended to minimize the disruption the government decision will cause to Huawei smartphone owners around the globe. Another recent Digital Journal article explores the problems the US and Google decision will cause for Huawei.

Reng Zhengfei, Huawei founder said though : "The US 90-day temporary license does not have much impact on us, we are ready..Huawei's 5G will absolutely not be affected. In terms of 5G technologies, others won't be able to catch up with Huawei in two or three years."

Zhengei also noted that its other businesses will not be hurt by the ban and that the US government was very much underestimating the strength of the company.

Trump's decision will hurt some US tech companies

While in the short term Huawei may be hurt by the Google ban and Trump decision in the longer term it will hasten Huawei's and other Chinese companies drive to develop their own cutting edge technology. It will also severely hurt some US companies which make considerable revenue from sales of parts and licensing their technology to Huawei. Some US chipmakers some of whom are already in dire straits will be hard hit by the ban.

A recent article notes: "The U.S. move escalates trade-war tensions with Beijing, but also risks making China more self-sufficient over time. Shares of U.S. tech companies slid on Monday as investors fretted the move against Huawei could crimp sales for companies, especially chipmakers, with revenue heavily tied to China."

The US move, no doubt part of continuing trade war between the two countries, represents a lose-lose situation and in the longer term the US may lose the most rather than getting the trade deal with China it hopes such measures will bring.

Previously published in the Digital Journal