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U.S. Department of Commerce gives Huawei a de facto "embargo" impact on smartphones and tablets? (Page 1/2)

Written By mobilephonebrand

As reported in several reports, the U.S. Department of Commerce announced on May 15 (Eastern Time, the same below) that China's Huawei (Huawei, Huawei) and 68 related companies were listed by the Ministry's Industrial Safety Bureau (BIS). Added to "Entity List". This required BIS approval to export products and services from the United States to listed companies. It is a de facto "embargo".

On the other hand, on May 20, the ministry issued a "temporary general permit" to the listed companies. For contracts valid by May 16th, some transactions necessary for mobile phone software updates and network maintenance / operation were approved for 90 days from May 20th. The possibility of extending this measure is also being considered.

In this article, I will explain the possible effects of Huawei's smartphones and tablets due to the movement of the US Department of Commerce.

The author is using four Huawei Android devices in addition to "HUAWEI Mate 20 Pro" (photo) (the photo is not directly related to the article).

What is an "entity list" in the first place?

BIS has put together four "lists of concern" for individuals, groups and companies that have any concerns about exporting products and services outside the United States. The Entity List is one of them, listing individuals, businesses, research institutions, or government agencies that violate the interests of US national security and foreign policy.

When exporting a product or service from the United States to a listed company, or when transferring a product or service to a listed company in the United States, the exporter (transfer) must obtain approval (license) from BIS. The same applies to exports (re-exports) from the United States via third countries.

米商務省がHuaweiに事実上の「禁輸措置」 スマホやタブレットへの影響は?(1/2 ページ)

You might think, "If the seller gets the approval, it can be exported without any problem." However, this approval application has a "principle refusal" policy, and it will not pass unless there is a good deal.

You might think, "If you buy a product or service produced outside the United States, there is no problem." Products are also considered "re-exports" and are subject to regulation.

In any case, being on the Entity List makes it difficult to buy products and services that come from the United States.

A description of the entity list on the BIS website

Huawei and its 68 affiliates added to the entity list because they violated the International Emergency Economic Powers Act, such as providing financial services to Iran, and the company's obstruction to the investigation. The related companies to be added include Huawei Technology Japan (Huawei Japan), which is a Japanese corporation.

Huawei Japan, the Japanese subsidiary of Huawei, is also included in the entity list.

How will it affect Huawei's smartphones and tablets?

Being on the Entity List makes it difficult for Huawei to buy (contract) products and services from the United States. How will that effect appear?

Focusing on smartphones and tablets does not seem to have a significant impact on the hardware (main unit). This is because core parts such as processors and modems can be prepared within the company group, and other parts can be procured from countries other than China or the United States.

Huawei also procures many parts from Japan

On the other hand, it can have a big impact on software.

Huawei's smartphones and tablets use Google's "Android" as the OS. In markets other than China, Google's genuine service apps such as "Google Play," "YouTube," and "Google Maps" are also pre-installed. Some models are also equipped with Dolby Laboratories' acoustic technology "Dolby Atmos."

However, both Google and Dolby are US companies. The license of the software to Huawei by both companies corresponds to "export from the United States". The straightforward interpretation of the decree is that US companies, including both companies, must obtain prior approval from BIS before they can license new software to Huawei.

The impact of this will be divided into "released models," "announced unreleased models," and "future models."

What kind of effect does it have on the terminal?

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