Huawei Technologies, the Chinese telecommunications company, filed a lawsuit in the U.S. Court of Appeals for the Fifth Circuit asking for a review of last year’s FCC ruling that found it a national security risk. As a result of the FCC’s ruling, U.S. telecommunications operators were blocked from buying Huawei’s 5G equipment. Huawei has previously challenged numerous actions taken against it in recent years. The Trump administration blocked Huawei from accessing U.S. technology and encouraged allies to do the same. Continue reading Huawei Appeals FCC Edict Naming It a National Security Risk

The tech Cold War between the U.S. and China is doing more than disrupting manufacturing: it’s costing a fortune, particularly for the telecommunications and semiconductor industries, in which President Trump has blocked leading companies from both countries from doing business with one another. Chinese companies can no longer do business in the U.S. and U.S. companies are blocked from exporting to Chinese companies. Lost business and the need to replace gear are likely to cost billions of dollars. Continue reading U.S.-China Cold War Hits Semiconductor, Telecom Industries

Starting in Q4 2019, chipmakers — including Intel and Taiwan Semiconductor Manufacturing — began enjoying an upswing in demand that led to better sales and earnings. Data centers and personal computers appear to be fueling the increased demand. Intel, for example, reported that “adjusted earnings per share in [that] quarter rose to $1.52 from $1.28 in the year-prior period.” FactSet analysts predicted only $1.25 per share on an adjusted basis and $19.23 billion in sales. In fact, sales rose 8 percent to $20.21 billion. Continue reading Intel Earnings Rise with Increased Data Center, PC Demand

Deloitte chief of staff, technology, media & telecom industry Glen Dong introduced a discussion on the global economic landscape with a focus on China, which he dubbed “arguably the largest economy in the world.” He introduced Dr. Ira Kalish, Deloitte’s chief global economist, who put that into perspective with a 2020 economic outlook. “We’ve already seen a substantial deceleration of growth in the global economy,” he noted. “The Chinese economy has had some of its slowest growth in a decade.” Continue reading CES 2020: China’s Place in the Global Economic Landscape

On November 11, Chinese e-commerce giant Alibaba brought in nearly $38.3 billion worth of goods in the 24-hour period known in that country as Singles Day. That surpasses last year’s Singles Day that bought in $30.8 billion. Both figures dwarf the numbers for Black Friday, the massive commercial day-after-Thanksgiving sale in the U.S. Alibaba invented Singles Day ten years ago and, since then, has become a tech giant along the line of Amazon or Alphabet. China also has become wealthier and more digitally connected. Continue reading Alibaba’s Singles Day Reaps $38.3B, Dwarfing Black Friday

Although the White House has banned U.S. companies from selling technology to Huawei Technologies, some chipmakers, including Intel and Micron, are doing so by labeling goods produced overseas as not being “American-made.” The ban actually begins in mid-August, and U.S. suppliers, their attorneys and the Trump administration are mulling over if and how the ban impacts current sales. Meanwhile, FedEx has filed a lawsuit against the U.S., saying it cannot police the millions of packages it sends. Continue reading Firms Test Limits of Commerce Department Ban on Huawei

In the ongoing U.S.-China trade war, Hollywood is feeling the impact, as the Beijing-based government has begun to limit Hollywood’s ability to sell its entertainment products. Four people who do business in China or closely follow its relations with Hollywood are commenting to the press on the worsening relationship. China, currently the world’s second-largest film market, requires government approval for film distribution. “I don’t want to use the words ‘total freeze,’ but it’s real,” said SK Global head and “Crazy Rich Asians” producer John Penotti. “They’re not saying it officially, but the industry is operating as if it’s close to a total shutdown.”

Continue reading Trade War with China Could Impact Hollywood’s Box Office

The Justice Department charged Huawei and its chief financial officer Meng Wanzhou with the theft of trade secrets, obstructing a criminal investigation and evading economic sanctions on Iran. The charges are part of an aggressive move by the U.S. to block the Chinese telecom firm suspected of undermining national interests. The charges are based on Huawei’s internal emails describing a plan to steal T-Mobile testing equipment. Internal memos also link Meng to bank fraud to evade sanctions against Iran. Continue reading Justice Department Levies Multiple Charges Against Huawei

A recently invented Chinese holiday, Singles Day, posted $1 billion in sales in 85 seconds on November 11, with a gala kickoff event headlined by singer Mariah Carey, model Miranda Kerr and basketball star Allen Iverson. For the holiday, the equivalent to our Black Friday, sales rose 27 percent, nonetheless the slowest annual increase in its 10 year history (last year sales rose 39 percent). Alibaba shares doubled in 2017 but this year are down 16 percent, the result of a slowing economy and U.S. trade tariffs. Continue reading Alibaba Breaks Singles Day Record, But Economy Is Slowing

Taiwan plays an important role in the global technology supply chain, assembling devices from smartphones to computers. Now, as tensions rise between China and the U.S., some of the largest Taiwan-based companies are figuring out ways to avoid the worst depredations of the trade war. Foxconn Technology Group chairman Terry Gou took the first step, by opening a $10 billion display plant in the U.S., and now the chief executives of Pegatron and Inventec are revealing details of their own plans. Continue reading In Taiwan, CE Firms Devise Contingency Plans for Trade War

Qualcomm has abandoned its $44 billion deal to buy Dutch chipmaker NXP Semiconductors after China held up approval of the transaction for more than 20 months. The death of the deal means that Qualcomm will buy back up to $30 billion of its stock in an attempt to raise share prices. China dragged its heels after the Trump administration imposed tariffs on numerous Chinese goods and China retaliated. Experts say China withheld approval of the sale to gain leverage in negotiations with Washington. Continue reading Qualcomm Kills NXP Acquisition in Wake of China Trade War

Chinese telecom equipment and systems company ZTE, which has about $17 billion in annual revenue, has ceased “major operating activities” in the wake of the Trump administration’s ban on it using U.S.-made components for the next seven years. Trading in its shares has been suspended for weeks, and its workers in the Shenzhen factory have little to do but attend occasional training sessions. New guidelines tell its staff to reassure clients, but not discuss the details of the U.S. technology the company is currently banned from using. Continue reading ZTE Ceases Main Operations in Response to U.S. Sanctions