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Escalation: US Slaps Export Ban On Huawei’s Silicon Valley Subsidiary

Wilbur Ross stressed in a statement that the Huawei export ban is “independent” of the trade negotiations.

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Via Zerohedge


Despite the first round of US-China trade talks reportedly reaching an “optimistic” conclusion as the two sides made progress on a number of issues – including China’s controversial officially-sanctioned IP theft – the Wall Street Journal reported on Thursday that the US is continuing its crackdown on Huawei Technologies by prohibiting a US-based Huawei subsidiary from exporting technologies developed in a Silicon Valley lab back to the mainland.

The escalation comes as the US is warning its allies to avoid Huawei’s telecoms equipment due to concerns about its vulnerability to infiltration by the Chinese government, to which Huawei reportedly maintains close ties (though Huawei insists that it is an independent company cooperatively owned by its employees). The US is also in the process of extraditing Huawei CFO Meng Wanzhou over charges that she knowingly lied to banks to try and conceal violations of US and EU sanctions against Iran.

Commerce has handed down an ‘export ban’ to Futurewei – the name of Huawei’s US subsidiary – by signaling that it intends to deny Huawei’s application to renew its license. And while most of the technologies developed by Futurewei don’t require a license to export, the export ban will severely restrict its operations.

The license covered the export of telecommunications technology and software, including high-speed data-transfer technology, according to the documents. The technology had an operating budget of more than $16 million and involved more than 40 full-time-equivalent personnel.

The Commerce Department’s move isn’t a death blow to Futurewei because the majority of technologies the unit exports from the U.S. don’t require an export license, according to people familiar with the matter. The company continues to operate in the U.S.

Futurewei is contesting the decision, but the ban will remain in effect as the appeals process unfolds. The company is threatening to move its R&D division outside the US.

Wilbur Ross stressed in a statement that the Huawei export ban is “independent” of the trade negotiations (we imagine Beijing will see it that way, too).

“The process for granting export licenses is independent from our ongoing trade discussions with China,” Commerce Secretary Wilbur Ross said in a statement to the Journal.

The ban comes after Futurewei was accused in a lawsuit filed by CNEX Labs of trying to steal CNEX’s semiconductor technology.

Huawei maintains a modest presence in the US with some 1,200 employees despite being banned from selling its telecoms equipment in the US since 2012 due to being labeled a national security threat.

Huawei has been effectively blocked from selling its telecommunications equipment in the U.S. since a 2012 Congressional report labeled it a national security threat. Huawei has long denied that it is a threat, saying it is owned by its employees and operates independently of Beijing.

The company maintains a modest presence in the U.S., where it employs about 1,500 people. Many are involved in sales of telecom equipment to small carriers servicing rural areas. But the company has scaled back its public-relations outreach and curtailed efforts to communicate with Congress and federal agencies, people familiar with the matter have said. It has redirected its fight to the courts, hiring additional law firms to deal with potential challenges.

As a delegation of senior Chinese trade officials prepares to travel to Washington next week, the ban raises the question of whether the US’s treatment of Huawei will be a factor in trade talks going forward (will Beijing retaliate), or whether the Chinese will object to the US giving them a taste of their own medicine – after all, many suspect that the US’s scrutiny against Huawei is partly motivated by the race for dominance in 5G, where Huawei is facing off against Verizon and US carriers to become the preeminent purveyor of 5G technology.

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RegulaBrian LivingRay Joseph CormierJustin TauaPlaton Recent comment authors
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Platon
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Platon

Isn’t ‘free market capitalism’ a wondrous, shape-shifting sort of thing?

Though it would seem “More honored in the breach than in the observance” as Shakespeare said.

Tom Welsh
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Tom Welsh

It would be wondrous if it had ever existed! No economy in which the government or central bank controls the interest rate can possibly have a free market. The interest rate is the price of money, and if that is rigged there can be no question of a free market. Moreover, the US government has rigged all important markets since 1945 at least. Aircraft, computers, pharmaceuticals, banking…

Tom Welsh
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Tom Welsh

According to this article, only about 3% of China’s exports (by value) go the USA. Frankly, they would hardly be missed (except by the many poor Americans who cannot afford to shop anywhere but Walmart and dollar stores).

Huawei should simply pull the operation out of the USA.And reciprocate by forbidding US subsiaries in China to exprt technology to the USA.

https://rwer.wordpress.com/2019/01/10/the-us-is-not-that-important-to-china/

Platon
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Platon

“The US is agreement incapable.” Sergei Lavrov

Now add to that competition-incapable and peace-incapable.

Justin Taua
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Justin Taua

When the US started going down the road of incorporating spyware into electronic goods from, mobile phones, computers, smart TV’s, vaccuum cleaners etc; there was a blind acceptance that it was a marketing ploy to determine consumer habits and increase user efficiency. In other words, it was a voluntary measure by industry in conjunction with the US NSA; to spy on US consumers. In that context, the US Imperialist campaign to wage a “Monopoly-driven” trade war with China by attacking Huawei’s G5 Network; is based on a monumental lie. US Monopoly greed asside, the false accusations of Chinese State control… Read more »

Justin Taua
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Justin Taua

When the US started going down the road of incorporating spyware into electronic goods from, mobile phones, computers, smart TV’s, vaccuum cleaners etc; there was a blind acceptance that it was a marketing ploy to determine consumer habits and increase user efficiency. In other words, it was a voluntary measure by industry in conjunction with the US NSA; to spy on US consumers. In that context, the US Imperialist campaign to wage a “Monopoly-driven” trade war with China by attacking Huawei’s G5 Network; is based on a monumental lie. US Monopoly greed asside, the false accusations of Chinese State control… Read more »

Ray Joseph Cormier
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Wilbur Ross stressed in a statement that the Huawei export ban is “independent” of the trade negotiations. China would not see it that way, but the US has a history of making American Interests and Law Sovereign over the other Nations. The US told the Russians when they withdrew from the SALT Treaty in 2002, which prohibited the deployment of anti-missile missiles in Europe, saying they were aimed at Iran who didn’t have missiles reaching that far or nukes. The Russians are not as stupid as Americans who don’t question much of anything. The Russians could see those missiles, now… Read more »

Regula
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Regula

This is more of the same: the US destroying a foreign company that outdid it’s US competitors. It is not unlike the US destroying Megaupload and FIFA with questionable legal authority.and not because those entities did anything wrong in their operations but because they were independent of US control and because they were successful. Megaupload was destroyed because it wasn’t the US who got the money just as now Huawei is getting destroyed because they are ahead in the development of 5G networks. Huawei will do well to move it’s R&D operations outside the US since no matter how law… Read more »

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Macron cuts ski holiday short, vowing crack down on Yellow Vests (Video)

The Duran Quick Take: Episode 109.

Alex Christoforou

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The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the 18th consecutive week of Yellow Vests protests in Paris. Following last weeks lower participation, Saturday’s Yellow Vests in Paris gathered larger crowds, with various outbreaks of violence and rioting that has been blamed on extreme elements, who French authorities claim have infiltrated the movement.

“Act XVIII” of the protests has shown that the Yellow Vests have not given up. France’s Champs-Élysées boulevard was where most of the violence occurred, with the street being left in a pile of broken glass and flames.

One day after Paris was set ablaze, French President Emmanuel Macron cut his ski holiday short, returning to Paris and vowing to take “strong decisions” to prevent more violence.

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Via Zerohedge


Paris awoke on Sunday to smouldering fires, broken windows and looted stores following the 18th consecutive Saturday of Yellow Vest protests.

Around 200 people were arrested according to BFM TV, while about 80 shops near the iconic Champs Elysees had been damaged and/or looted according to AFP, citing Champs Elysees committee president Jean-Noel Reinhardt.

The 373-year-old Saint Sulpice Roman Catholic church was set on fire while people were inside, however nobody was injured. The cause of the fire remains unknown.

The riots were so severe that French President Emmanuel Macron cut short a vacation at the La Mongie ski resort in the Hautes-Pyrénées following a three-day tour of East Africa which took him to Djibouti, Ethiopia and Kenya.

Macron skied on Friday, telling La Depeche du Midi “I’m going to spend two-three days here to relax, to find landscapes and friendly faces,” adding “I’m happy to see the Pyrenees like that, radiant, although I know it was more difficult at Christmas” referring to the lack of snow in December.

In response to Saturday’s violence, Macron said over Twitter that “strong decisions” were coming to prevent more violence.

Macron said some individuals — dubbed “black blocs” by French police forces — were taking advantage of the protests by the Yellow Vest grassroots movement to “damage the Republic, to break, to destroy.” Prime Minister Edouard Philippe said on Twitter that those who excused or encouraged such violence were complicit in it. –Bloomberg

The French President has family ties in the Hautes-Pyrénées, including Bagnères de Bigorre where his grandmother lived. He is a regular visitor to the region.

Emmanuel Macron (2ndL), head of the political movement In Marche! (Onwards!) And candidate for the 2017 presidential election, and his wife Brigitte Trogneux (L) have lunch April 12, 2017 (Reuters)

 

 

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Vesti calls out Pompeo on lying about Russia invading Ukraine [Video]

Secretary Pompeo displayed either stunning ignorance or a mass-attack of propaganda about what must be the most invisible war in history.

Seraphim Hanisch

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After the 2014 Maidan revolution and the subsequent secessions of Lugansk and Donetsk in Ukraine, and after the rejoining of Crimea with its original nation of Russia, the Western media went on a campaign to prove the Russia is (/ was / was about to / had already / might / was thinking about / was planning to … etc.) invade Ukraine. For the next year or so, about every two weeks, internet news sources like Yahoo! News showed viewers pictures of tanks, box trucks and convoys to “prove” that the invasion was underway (or any of the other statuses confirming the possibilities above stated.) This information was doubtless provided to US Secretary of State, Mike Pompeo.

Apparently, Secretary Pompeo believed this ruse, or is being paid to believe this ruse because in a speech recently, he talked about it as fact:

U.S. Secretary of State Mike Pompeo called Russia’s annexation of Crimea and aggression in eastern Ukraine an attempt to gain access to Ukraine’s oil and gas reserves.

He stated this at IHS Markit’s CERAWeek conference in Houston, the USA, Reuters reports.

Pompeo urged the oil industry to work with the Trump administration to promote U.S. foreign policy interests, especially in Asia and in Europe, and to punish what he called “bad actors” on the world stage.

The United States has imposed harsh sanctions in the past several months on two major world oil producers, Venezuela and Iran.

Pompeo said the U.S. oil-and-gas export boom had given the United States the ability to meet energy demand once satisfied by its geopolitical rivals.

“We don’t want our European allies hooked on Russian gas through the Nord Stream 2 project, any more than we ourselves want to be dependent on Venezuelan oil supplies,” Pompeo said, referring to a natural gas pipeline expansion from Russia to Central Europe.

Pompeo called Russia’s invasion of Ukraine an attempt to gain access to the country’s oil and gas reserves.

Although the state-run news agency Vesti News often comes under criticism for rather reckless, or at least, extremely sarcastic propaganda at times, here they rightly nailed Mr. Pompeo’s lies to the wall and billboarded it on their program:

The news anchors even made a wisecrack about one of the political figures, Konstantin Zatulin saying as a joke that Russia plans to invade the United States to get its oil. They further noted that Secretary Pompeo is uneducated about the region and situation, but they offered him the chance to come to Russia and learn the correct information about what is going on.

To wit, Russia has not invaded Ukraine at all. There is no evidence to support such a claim, while there IS evidence to show that the West is actively interfering with Russia through the use of Ukraine as a proxyWhile this runs counter to the American narrative, it is simply the truth. Ukraine appears to be the victim of its own ambitions at this point, for while the US tantalizes the leadership of the country and even interferes with the Orthodox Church in the region, the country lurches towards a presidential election with three very poor candidates, most notably the one who is president there now, Petro Poroshenko.

However, the oil and gas side of the anti-Russian propaganda operation by the US is significant. The US wishes for Europe to buy gas from American suppliers, even though this is woefully inconvenient and expensive when Russia is literally at Europe’s doorstep with easy supplies. However, the Cold War Party in the United States, which still has a significant hold on US policy making categorizes the sale of Russia gas to powers like NATO ally Germany as a “threat” to European security.

It is interesting that Angela Merkel herself does not hold this line of thinking. It is also interesting and worthy of note, that this is not the only NATO member that is dealing more and more with Russia in terms of business. It underscores the loss of purpose that the North Atlantic Treaty Organization suffers now since there is no Soviet Union to fight.

However, the US remains undaunted. If there is no enemy to fight, the Americans feel that they must create one, and Russia has been the main scapegoat for American power ambitions. More than ever now, this tactic appears to be the one in use for determining the US stance towards other powers in the world.

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Ariel Cohen explains Washington’s latest foreign policy strategy [Video]

Excellent interview Ariel Cohen and Vladimir Solovyov reveals the forces at work in and behind American foreign policy.

Seraphim Hanisch

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While the American people and press are pretty much complicit in reassuring the masses that America is the only “right” superpower on earth, and that Russia and China represent “enemy threats” for doing nothing more than existing and being successfully competitive in world markets, Russia Channel One got a stunner of a video interview with Ariel Cohen.

Who is Ariel Cohen? Wikipedia offers this information about him:

Ariel Cohen (born April 3, 1959 in Crimea in YaltaUSSR) is a political scientist focusing on political risk, international security and energy policy, and the rule of law.[1] Cohen currently serves as the Director of The Center for Energy, Natural Resources and Geopolitics (CENRG) at the Institute for Analysis of Global Security (IAGS). CENRG focuses on the nexus between energy, geopolitics and security, and natural resources and growth. He is also a nonresident senior fellow at the Atlantic Council, within the Global Energy Center and the Dinu Patriciu Eurasia Center.[2] Until July 2014, Dr. Cohen was a senior research fellow at the Heritage Foundation in Washington, D.C. He specializes in Russia/Eurasia, Eastern Europe, and the Middle East.

Cohen has testified before committees of the U.S. Congress, including the Senate and House Foreign Relations Committees, the House Armed Services Committee, the House Judiciary Committee and the Helsinki Commission.[4] He also served as a Policy Adviser with the National Institute for Public Policy’s Center for Deterrence Analysis.[5] In addition, Cohen has consulted for USAID, the World Bank and the Pentagon.[6][7]

Cohen is a frequent writer and commentator in the American and international media. He has appeared on CNN, NBC, CBS, FOX, C-SPAN, BBC-TV and Al Jazeera English, as well as Russian and Ukrainian national TV networks. He was a commentator on a Voice of America weekly radio and TV show for eight years. Currently, he is a Contributing Editor to the National Interest and a blogger for Voice of America. He has written guest columns for the New York TimesInternational Herald TribuneChristian Science Monitor, the Washington Post, the Wall Street Journal, the Washington Times, EurasiaNet, Valdai Discussion Club,[8] and National Review Online. In Europe, Cohen’s analyses have appeared in Kommersant, Izvestiya, Hurriyet, the popular Russian website Ezhenedelny Zhurnal, and many others.[9][10]

Mr. Cohen came on Russian TV for a lengthy interview running about 17 minutes. This interview, shown in full below, is extremely instructive in illustrating the nature of the American foreign policy directives such as they are at this time.

We have seen evidence of this in recent statements by Secretary of State Mike Pompeo regarding Russia’s “invasion” of Ukraine, and an honestly unabashed bit of fear mongering about China’s company Huawei and its forthcoming 5G networks, which we will investigate in more detail in another piece. Both bits of rhetoric reflect a re-polished narrative that, paraphrased, says to the other world powers,

Either you do as we tell you, or you are our enemy. You are not even permitted to out-compete with us in business, let alone foreign relations. The world is ours and if you try to step out of place, you will be dealt with as an enemy power.

This is probably justified paranoia, because it is losing its place. Where the United Stated used to stand for opposition against tyranny in the world, it now acts as the tyrant, and even as a bully. Russia and China’s reaction might be seen as ignoring the bully and his bluster and just going about doing their own thing. It isn’t a fight, but it is treating the bully with contempt, as bullies indeed deserve.

Ariel Cohen rightly points out that there is a great deal of political inertia in the matter of allowing Russia and China to just do their own thing. The US appears to be acting paranoid about losing its place. His explanations appear very sound and very reasonable and factual. Far from some of the snark Vesti is often infamous for, this interview is so clear it is tragic that most Americans will never see it.

The tragedy for the US leadership that buys this strategy is that they appear to be blinded so much by their own passion that they cannot break free of it to save themselves.

This is not the first time that such events have happened to an empire. It happened in Rome; it happened for England; and it happened for the shorter-lived empires of Nazi Germany and ISIS. It happens every time that someone in power becomes afraid to lose it, and when the forces that propelled that rise to power no longer are present. The US is a superpower without a reason to be a superpower.

That can be very dangerous.

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