Huawei has cancelled its planned launch of a new laptop due to a recently imposed U.S. ban that forbids the company from buying parts from U.S. companies without a special government approval.

Huawei business consumer group CEO Richard Yu told CNBC that the company planned to launch a new MateBook product, but has now put those plans on hold — indefinitely.

Yu called the situation "unfortunate." He could not provide a later date for the launch, saying it depends on how long Huawei will be blacklisted by the U.S.. If Huawei stays on the U.S. "entity list" for a long time, the new MateBook might be scrapped altogether, he said.

After being blacklisted by the U.S. in May, Huawei was cut off from purchasing parts from chipmakers Intel and Qualcomm. Given that all of Huawei's MateBook laptops released so far have been based on Intel chips, Huawei was likely unable to get the necessary parts for the new MateBook — despite the reports that the company has stockpiled enough components to last it at least three months.

Huawei's laptop business was hurt in other ways, too; in May, Microsoft stopped selling Huawei laptops through its online store.

While Huawei doesn't sell a huge number of laptops — the company is a far bigger player in the smartphone arena — the cancellation of an important new product will surely hurt the company, especially given Huawei's appetite for becoming a top PC seller. The news is also bad for consumers, simply because Huawei's MateBook's laptops are really good. </s> Huawei was planning to announce a new MateBook laptop this week, but an executive confirmed that the company cancelled the launch because of US sanctions against the Chinese company. It's not clear when—or whether—the laptop will be released.

The US has banned sales of technology to Huawei, which uses Intel chips and the Windows operating system in its MateBook PCs. Huawei "planned to unveil the new Windows laptop at the CES Asia 2019 trade show in Shanghai this week" but "indefinitely postponed" the launch because of the US export ban, The Information reported yesterday.

Huawei consumer division CEO Richard Yu subsequently confirmed the cancellation to CNBC. "We cannot supply the PC," Yu said, calling it "unfortunate," according to CNBC.

Huawei has also "paused production at its personal-computer business because of restrictions on buying US components," the Wall Street Journal reported. We contacted Huawei today, but a company spokesperson had no further information to share.

The US last month put Huawei on its Entity List, which prevents it from buying parts and components from US companies without US government approval. The US argues that the Chinese government could use Huawei to spy on the US, but Huawei has denied those accusations and called on the US to provide evidence.

"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,'" CNBC wrote. "He acknowledged that, if Huawei is on the blacklist for a long time, the laptop will not be able to be launched."

Huawei is known more for smartphones and networking equipment but has courted PC users with laptops such as the MateBook 13 and MateBook X Pro.

The Global Times—which is part of China's state-run media—published a story disputing some of the reporting about the laptop launch. "Huawei will release a new laptop product in July, with different models and configurations compared with previous series such as the MateBook and HonorBook, a source close to the matter confirmed to the Global Times," the news organization said.

"The new laptop will be equipped with the Windows operating system, the source said, in contrast to rumors about Microsoft halting cooperation with Huawei," the report added. The laptop will use an ARM processor instead of Intel, the report said.

The state-run media report doesn't mention the fact that a Huawei executive confirmed the cancellation of this week's laptop launch. The Global Times also said its source "refuted reports that Huawei had halted laptop production due to the export control imposed by the Trump administration amid the escalating trade war." The Global Times wrote that "industry insiders" called Huawei's plan to release the laptop "an inspiring move."

Intel reportedly restricted its employees from having informal conversations with Huawei, but an Intel executive also spoke out against the Trump administration's Huawei ban on Monday.

ARM—which licenses its intellectual property to other vendors—recently told its employees that the US export ban means it can no longer work with Huawei. Microsoft recently removed Huawei laptops from its website.

In other Huawei news today, The Wall Street Journal reported that Huawei has told Verizon it should pay licensing fees for more than 200 patents that cover "core network equipment, wireline infrastructure and Internet-of-things technology." </s> Chinese firm cancels launch of Matebook laptop as US Entity Listing halts Intel chips and Microsoft software

Fresh signs of the fallout of the US blacking of Huawei Technologies, after the Chinese firm confirmed it is cancelling the launch of a new laptop.

The new Matebook machine was going to be revealed at the CES Asia show in Shanghai this week, but consumer division CEO Richard Yu confirmed to CNBC that the launch had been pulled.

Huawei is struggling to deal with the fallout after an executive order issued by President Donald Trump in mid May, that declared a national security emergency against Chinese firms.

Following Trump’s executive order, the US Commerce Department added Huawei and 70 affiliates to its so-called Entity List, which bans them from buying parts and components from US companies without US government approval.

That decision made it difficult, if not impossible, for Huawei, to sell some products because of its reliance on US suppliers for essential silicon and other components.

Just days later however the US Commerce Department announced a 90-day delay to the imposition of trade restrictions on Huawei, but the Chinese firm said that the extension didn’t ‘mean much’.

Huawei is therefore still allowed to buy US goods until 19 August.

But this new laptop is said to rely on chips from Intel, as well as software (Windows 10 etc) from Microsoft.

Both of these firm are American, and are effectively barred from doing business with Huawei.

Richard Yu told CNBC that its launch of the Matebook device had been indefinitely put on hold.

He said that being on the US Entity List had caused the cancellation.

“We cannot supply the PC,” Yu reportedly said, adding that the situation is “unfortunate.”

When Yu 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.

Huawei has insisted that the American blacklisting has not impacted smartphone sales, despite several media reports that manufacturing orders have been scaled back.

Google said that after 19 August, it will restrict Huawei’s access to future Android operating system updates, which impacts Huawei’s ability to offer popular Google apps on its phones in the future.

Google’s Play Store and all Google apps will still be available for current and future models of Huawei phones. But this is likely to change going forward.

Facebook has also pulled the pre-installing of its Facebook, WhatsApp and Instagram apps from Huawei smartphones as well.

And firms such as British chip designer ARM, as well as Intel, Qualcomm, Xilinx and Broadcom have said they are halting co-operation with Huawei.

Do you know all about security? Try our quiz! </s> Image copyright Getty Images Image caption Richard Yu had been expected to unveil a new laptop at the CES Asia 2019 tech show in Shanghai

Huawei has ditched a product launch for the first time since the US placed it on a trade blacklist.

It was reported that the Chinese tech firm had intended to unveil a new laptop as early as this week.

However, its consumer device chief Richard Yu told CNBC that it had become "unable to supply the PC".

"[It's] unfortunate," he added via a WeChat message to the business news network. He added that the product itself might have to be scrapped.

"[It] depends on how long the Entity List will be there," he wrote.

This refers to a list of foreign parties that the US Department of Commerce has judged to pose a potential national security or foreign policy threat.

Specifically, Huawei is accused of having committed bank fraud to evade Iran sanctions, and obstruction of justice, among other violations.

As a result, other companies with business activities in the US have been forbidden to sell or transfer technologies to the Shenzhen-based firm unless they have a special licence.

Huawei denies any wrongdoing, and has said that claims its poses a security threat are "unsubstantiated".

Self-drive cars

Huawei launched new smartphones shortly after the decision was taken last month.

But its inability to buy computer chips and other components from Intel, Qualcomm and Broadcom - among others - appears to have hindered its ability to produce the new laptop in the volumes required, despite the fact it had built up stockpiles of parts in case such a crisis occurred.

In addition, there has been speculation that Huawei would be unable to license copies of the Windows 10 operating system from Microsoft.

Washington's intervention has resulted in some non-US companies breaking links too. The chip designer ARM, for example, which is UK-based and owned by Japan's Softbank, told staff to suspend business with Huawei because some of its R&D work is carried out in the States.

Despite this, the Chinese firm continues to pursue partnerships with overseas companies.

The Financial Times has reported that Huawei has begun working with Audi and Toyota among others, to develop self-driving cars. </s> The pressure is mounting on Huawei.

This week, the Chinese tech giant admitted to canceling the launch of one of its new laptops after being banned from doing business with US suppliers

Richard Yu, CEO of Huawei's consumer business, told CNBC. "We cannot supply the PC," he said, adding that the situation is "unfortunate."

Sources familiar with the matter told The Information that its new Windows laptop, which was meant to be unveiled at the CES Asia 2019 trade show in Shanghai this week, was pulled because US trade sanctions blocked its access to Microsoft's Windows operating system and Intel's processors, which it relies on to function.

Huawei has been placed on an "entity list" which means US companies need permission to do business with the Chinese tech firm from August. Google is said to be lobbying against the decision.

Read more: Microsoft hasn't said a word so far about Huawei's ban in the US, but it removed Huawei laptops from its stores

It doesn't look like we can expect the laptop to launch anytime soon. When asked by CNBC whether it could still launch, Yu said: [It] "depends on how long the entity list will be there."

Taiwanese news site Digitimes also reported earlier this week that Huawei had paused the delivery and development of its laptops.

A spokesperson for Huawei did not immediately respond to Business Insider's request for comment.

Huawei previously acknowledged that it is speeding up efforts to develop its own smartphone operating system and app store to reduce the impact of trade sanctions.

It has also reportedly stopped some smartphone production lines and has "reassessed" its target to become the world's top smartphone vendor by the end of 2020. </s> Huawei postpones new laptop indefinitely after US ban - 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. Shanghai - 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 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 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. 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. 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.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.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 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. </s> There’s an aspect to China’s rise as an economic power that presents a constant national security threat to the United States: the unlimited reach of the Chinese government.

In China’s communist-run political system, lines of control and influence between Beijing and privately operated enterprises are murky — when those lines exist at all. Some Chinese companies are owned directly by the government, but all owe a level of fealty to the government. A few weeks ago, the Chinese news media disclosed that Jack Ma, a Chinese internet entrepreneur worth $39 billion, is a Communist Party member. The revelation isn’t scandalous because it reflects the reality of the Chinese hybrid system: There’s no place for business owners and executives to hide in an authoritarian state. So they might as well join the party and accrue the benefits.

That’s all background for a spectacular legal confrontation now brewing between China and the U.S. over Huawei, China’s telecom giant. On Dec. 1, Canadian authorities fulfilled a U.S. government request to arrest Huawei’s chief financial officer amid allegations the company violated U.S. trade sanctions against Iran.

The pressure point runs much deeper than whatever U.S.-originated equipment Huawei may have sold to Iran. Huawei is described as the world’s largest supplier of cellular tower electronics and other telecommunications equipment. The firm is on the cutting edge, developing and selling 5G (fifth generation) mobile phone service technology around the world. All fine — global competition is welcome. Except almost everything related to telecommunications technology has potential military usefulness, including for espionage.

Huawei says it’s a privately owned company that doesn’t answer to the government, doesn’t engage in espionage and complies with all applicable law. But who really calls the shots at Huawei? The company’s founder, Ren Zhengfei, is a former Chinese army officer. He left the People’s Liberation Army in the early 1980s, the era in which Premier Deng Xiaoping decided to embrace free-market reforms while retaining one-party rule. Ren’s daughter, Meng Wanzhou, is the Huawei executive who was arrested in Vancouver.

The U.S. government is deeply suspicious of Huawei and its connections to the Chinese government. A 2012 congressional report concluded that Huawei couldn’t prove its independence from government control. The report determined that Huawei and another firm, ZTE, provided “a wealth of opportunities for Chinese intelligence agencies to insert malicious hardware or software implants into critical telecommunications components and systems.” Even if company executives refused to help their government commit nefarious acts, the report noted, all it would take is recruiting a few technicians to do the dirty work. Chinese law appears to require cooperation with any request under the guise of state security.

The arrest may complicate the Trump administration’s trade negotiations with China, given that Chinese authorities are angry about the treatment of such a high-profile executive. But this collision of interests will turn out to be a good test of Chinese intentions. Trade is one facet of a complex relationship. Both sides will be better off if President Donald Trump can negotiate a deal with Chinese President Xi Jinping without getting distracted by a criminal case that will proceed on the merits.

As for companies like Huawei, the Chinese government has a choice. It can encourage companies in sensitive industries to open themselves to outside scrutiny and investment. It also can insist that companies like Huawei respect the law — U.S. sanctions against Iran included. Or China can allow companies like Huawei to stay in the shadows, untrusted by the United States and other Western governments. There are plenty of other telecom companies willing to sell sensitive equipment and play by the rules.

Join the discussion on Twitter @Trib_Ed_Board and on Facebook.

Submit a letter to the editor here or email letters@chicagotribune.com. </s> Trump Says Huawei Could Become Part of Trade Deal With China

(Bloomberg) -- President Donald Trump said Thursday that China’s Huawei Technologies Co., which was put on a U.S. blacklist earlier this month, could be part of a trade pact with the country.

“It’s possible that Huawei even would be included in some kind of a trade deal,” Trump told reporters at the White House, without providing details. “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.”

The Trump administration is seeking to choke off Beijing’s access to key technologies by limiting the sale of vital U.S. components to the Chinese telecommunications equipment maker over security concerns.

The U.S. had held off on blacklisting Huawei out of concern the move could disrupt trade negotiations with China and only took action after the last round of trade talks hit an impasse, according to people familiar with the matter. The decision to curtail the Shenzhen-based company’s access to American suppliers unfolded quickly once trade talks broke down, the people said.

The Commerce Department action last week requires American suppliers of Huawei, a crown jewel of Chinese manufacturing, to seek U.S. government permission to do business with the company.

The decision touched off a massive disruption in technology supply chains, hitting some of the biggest component-makers. Intel Corp., Qualcomm Inc. and Broadcom Inc. told their employees they won’t provide products to Huawei until further notice.

Trade talks between Beijing and Washington deadlocked this month as Trump accused China of backing out of a deal that was taking shape with U.S. officials, saying China reneged on an agreement to enshrine a wide range of reforms in law.

Trump increased levies on $200 billion in Chinese imports to 25% from 10%, prompting retaliation from Beijing. The U.S. has said it’s prepared to hit China with new tariffs even as Trump said he’ll meet his Chinese counterpart, Xi Jinping, at next month’s G-20 summit in Japan, an encounter that could prove pivotal.

The Trump administration has offered a reprieve before to a Chinese telecommunications company, ZTE Corp., in a similar situation as Huawei.

The Trump administration last year announced a seven-year ban on U.S. exports to ZTE after it said the company violated sanctions agreements by selling American technology to Iran and North Korea. The ban forced ZTE to announce it was shutting down.

Trump then reversed course, saying he was reconsidering penalties on ZTE as a personal favor to Xi. Shortly after, his administration announced it would allow the company to stay in business after paying a fine, changing its management and providing security guarantees.

To contact the reporter on this story: Alyza Sebenius in Washington at asebenius@bloomberg.net

To contact the editors responsible for this story: Alex Wayne at awayne3@bloomberg.net, Sarah McGregor, John Harney

For more articles like this, please visit us at bloomberg.com </s> Google has suspended Huawei’s access to updates of its Android operating system and chipmakers have reportedly cut off supplies to the Chinese telecoms company, after the US government added it to a trade blacklist last week.

Google said it was complying with an executive order issued by Donald Trump and was reviewing the “implications”, later adding that Google Play – through which Google allows users to download apps – and the security features of its antivirus software Google Play Protect would continue on existing Huawei devices. New versions of its smartphones outside China would lose access to popular applications and services including Google Play, Maps and the Gmail app.

Huawei will continue to have access to the version of the Android operating system available through the open source licence that is free to anyone who wishes to use it. But, according to Reuters who first reported the ban on Sunday, Google will stop providing technical support and collaboration for Android and Google services.

Q&A Why is Huawei controversial? Show Hide Huawei is a Chinese telecoms company founded in 1987. Politicians in the US have alleged that Huawei’s forthcoming 5G mobile phone networks could be hacked by Chinese spies to eavesdrop on sensitive phone calls and gain access to counter-terrorist operations. Allies who allow Huawei technology inside their 5G networks have been told they may be frozen out of US intelligence sharing. Australia, New Zealand and Japan have banned Huawei from their 5G networks. In the UK, BT has excluded Huawei telecoms infrastructure from its own 5G rollout and removed some of its equipment from the 4G network. In January 2019 Vodafone said it had decided to 'pause' the use of Huawei equipment in its core networks across Europe. The UK's defence secretary Gavin Williamson was sacked by prime minister Theresa May after a leak revealed the sensitive decision that the UK would not be totally banning Huawei from 5G projects.

Poland’s internal affairs minister, Joachim Brudziński, has called for the European Union and Nato to work on a joint position over whether to exclude Huawei from their markets, after an Huawei employee was arrested on spying charges. Much of the doubt surrounding Huawei stems from founder Ren Zhengfei’s background in China's People’s Liberation Army between 1974 and 1983, where he was an engineer. His daughter, Huawei’s senior executive Meng Wanzhou, was arrested in Canada in December 2018 over allegations of Iran-sanctions violations, and she awaits extradition to the US. Ren, referring to trade issues between the US and China, says the company is 'like a small sesame seed, stuck in the middle of conflict between two great powers'. Photograph: Mark Schiefelbein/AP

Huawei responded late Monday afternoon, promising to continue providing security updates and after-sale services for its smartphones and tablets. It did not clarify what the ban will mean for new Huawei phones but instead underscored its previous cooperation with Android.

“Huawei has made substantial contributions to the development and growth of Android around the world,” it said. “As one of Android’s key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefited both users and the industry.”

A spokesman for China’s ministry of foreign affairs, Lu Kang, said Beijing would “support Chinese enterprises in defending their legitimate rights through legal methods”.

Observers say Chinese countermeasures could include encouraging a consumer boycott of US goods, such as Apple products. China is Apple’s third largest market by sales volume. Increased inspections or added regulatory hurdles are other options. In 2014, amid US accusations of Chinese cyber-theft, Microsoft offices in China were subjected to raids by inspectors.

Huawei has previously said it is developing its own backup operating system in case it was blocked from using US software.

In an interview in March with the German publication Die Welt, Richard Yu, the head of the company’s consumer division, said the company had a “plan B”. He said: “We have prepared our own operating system. Should it ever happen that we can no longer use these systems, we would be prepared.”

Chipmakers such as Intel, Qualcomm, Xilinx, and Broadcom have told employees they will not supply chips to Huawei until further notice, Bloomberg reported on Monday, citing people familiar with the matter.

Huawei, which relies on chips from the US, has reportedly been stockpiling the chips and other components in anticipation of the ban. In an interview on Saturday, the Huawei chief executive, Ren Zhengfei, said the company would be “fine” without US chips.

It will take another crisis for governments to step up to the spending plate | Larry Elliott Read more

The moves come after the Trump administration officially added the telecoms manufacturer to a trade blacklist on Thursday, declaring a national economic emergency to ban the technology and services of “foreign adversaries”. The blacklist immediately led to restrictions that will make it extremely difficult for the firm to do business with US companies.

In another development in the growing trade war between the two countries, Trump claimed in an interview on Fox on Sunday night that his policy of imposing tariffs on Chinese goods was already bearing fruit by encouraging companies to move manufacturing to other countries.

The latest restrictions are likely to hit Huawei’s European business, its second-biggest market, because it licenses many of its mobile phone services from Google in Europe.

Geoff Blaber, the vice-president of research at the market research firm CCS Insight, told Reuters: “Having those apps is critical for smartphone makers to stay competitive in regions like Europe.”

Google’s suspension follows a report last week calling for Huawei to be prevented from supplying 5G mobile networks in the UK, because its operations are “subject to influence by the Chinese state”.

The research, by a Conservative MP and two academics, said a decision announced by Theresa May last month, after a fraught meeting of the national security council (NSC), to allow the company to supply “non-core” equipment should be overturned because using the company’s technology presents “risks”.

In the report by the Henry Jackson Society thinktank, the authors claimed Huawei “has long been accused of espionage” – a claim repeatedly denied by the firm – and noted that “while there are no definitely proven cases”, a precautionary principle should be adopted.

The British government has been pressured by partner intelligence agencies in the US and Australia to reconsider letting the Shenzhen-based multinational participate in the UK’s 5G network.

In April, May provisionally approved the use of Huawei technology for parts of the networks after a meeting of the NSC. A leaked account of the meeting said five cabinet ministers had raised concerns about the company.

How other countries are responding to Trump's Huawei threat Read more

Robert Strayer, a deputy assistant secretary at the US state department, warned last month that the UK’s proposal to adopt Huawei technology risked affecting intelligence cooperation with the US. He claimed the Chinese firm “was not a trusted vendor” and any use of its technology for 5G was a risk.

Australia, which also shares intelligence with the UK, has already moved to ban Huawei as a supplier for its future 5G network.

Huawei has always insisted it is a privately held company, independent of the Chinese state, owned largely by its employees, and has worked supplying phone technology in the UK for 15 years without problems.
Chinese telecommunications and electronics company Huawei cancels its new laptop launch. A Huawei executive said the company has been "unable to supply the PC" because of the U.S. trade blacklist and may have to scrap the project.