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Tag: huawei technologies co ltd

  • Taiwan investigates firms that worked with Chinese companies reportedly supplying Huawei | CNN Business

    Taiwan investigates firms that worked with Chinese companies reportedly supplying Huawei | CNN Business


    Taipei/Hong Kong
    CNN
     — 

    Taiwan is investigating whether four of its firms broke US sanctions or its own investment rules when they provided services to Chinese companies that are reportedly helping Huawei build chip factories.

    Emile Chang, a Ministry of Economic Affairs official in charge of reviewing investments, told CNN Friday that an “administrative probe” had been initiated this week into four Taiwanese companies named in a media report.

    The investigation will focus on whether their business activities in China were consistent with approvals they had been granted by the ministry, he said.

    If any of them are found to have violated the rules, each company is subject to a maximum fine of 25 million New Taiwan dollars ($777,000).

    The ministry will also look into whether the companies — Topco Scientific, United Integrated Services, L&K Engineering Co and Cica-Huntek Chemical Technology — violated any US sanctions, Chang added.

    All four companies deny any wrongdoing. In separate statements, they said they were involved only in wastewater management, interior decoration or construction work approved by Taiwan, and did not provide semiconductor materials or equipment.

    In recent years, Huawei has become a symbol of the tech rivalry between the United States and China. Washington and its allies in Europe and Asia have sought to curb its access to advanced chips and chipmaking technology due to fears that the telecoms company spies for the Chinese government.

    Huawei has always denied the allegations. It has not responded to a CNN request for comment.

    Formerly the world’s second largest maker of smartphones, the company has been attempting a comeback after being hit by US export restrictions, which were first imposed in 2019.

    Many Taiwanese companies, including chip giant TSMC and Apple supplier Foxconn, operate in China and are closely integrated into its supply chains. However, the island’s government keeps a close eye on what its companies are doing and does not allow its most advanced technology to be produced there.

    On Wednesday, Taiwan’s Minister of Economic Affairs Wang Mei-hua was asked by a lawmaker about a Bloomberg report that the four companies had allegedly supplied services to help Huawei build infrastructure for a network of chip making plants in China.

    Wang responded by saying the four companies had apparently provided Huawei with “wastewater and environmental protection equipment” for its factories, which she said was ostensibly different from the critical technologies the Taiwan government designated that could potentially impact national security.

    For years, Taiwan’s companies have been treading a fine line between engaging China’s commercial opportunities and avoiding potential violations of export controls, particularly as Beijing has ramped up military pressure on the island.

    Cross-strait relations are a key issue in Taiwan’s presidential election, which is due in January.

    China remains Taiwan’s largest trading partner. But China’s ruling Communist Party claims Taiwan, home to 24 million residents, as its territory — despite never having controlled it. It has long vowed to “reunify” Taiwan with the Chinese mainland, by force if necessary.

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  • China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

    China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Shares in SMIC, China’s largest contract chipmaker, plunged on Thursday, after two US congressmen called on the White House to further restrict export sales to the company.

    The comments came after Huawei Technologies introduced the Mate 60 Pro, a Chinese smartphone powered by an advanced chip that is believed to have been made by SMIC.

    Last week’s launch shocked industry experts who didn’t understand how SMIC, which is headquartered in Shanghai, would have the ability to manufacture such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology.

    TechInsights, a research organization based in Canada specializing in semiconductors, revealed shortly after the launch that the smartphone contained a new 5G Kirin 9000s processor developed specifically for Huawei by SMIC.

    This is a “big tech breakthrough for China,” Jefferies analysts said Tuesday in a research note.

    The development has fueled fears among analysts that the US-China tech war is likely to accelerate in the near future.

    US representative Mike Gallagher, chair of the US House of Representatives committee on China, called on the US Commerce Department on Wednesday to end all technology exports to Huawei and SMIC, according to Reuters.

    Gallagher was quoted as saying SMIC may have violated US sanctions, as this chip likely could not be produced without US technology.

    “The time has come to end all US technology exports to both Huawei and SMIC to make clear any firm that flouts US law and undermines our national security will be cut off from our technology,” he said.

    Shares in SMIC, which stands for Semiconductor Manufacturing International Corporation, sank 8.3% in Shanghai and 7.6% in Hong Kong on Thursday. Hua Hong Semiconductor, China’s second largest chip foundry, tumbled 5.8%.

    Texas Republican Michael McCaul, who chairs the House Foreign Affairs Committee, was quoted by Reuters as saying he was concerned about the possibility of China trying to “get a monopoly” in the manufacture of less-advanced computer chips.

    “We talked a lot about advanced semiconductor chips, but we also need look at legacy,” he reportedly said, referring to older computer chip technology which does not fall under export controls.

    “I think China is trying to get a monopoly on the market share of legacy semiconductor chips as well. And I think that’s a part of the discussion we’ll be having,” he said.

    Chinese state media have touted the development as a sign the country had successfully “broken US sanctions” and “achieved technological independence” in advanced chipmaking.

    Meme makers on the Chinese internet have even crowned US Commerce Secretary Gina Raimondo the unofficial brand ambassador for the Mate 60 series.

    The memes poke fun at the idea that that US sanctions, which are implemented and enforced by the US Commerce department, may have indirectly led to the launch of the new phone as China’s homegrown firms had to work with the available technology.

    Raimondo visited China last week, when the phone was launched. The memes have gone viral online and been reported on by state broadcaster CCTV.

    Before Thursday, SMIC’s shares in Hong Kong had rallied more than 20% within two weeks due to investor optimism. Huahong Semiconductor jumped 11%.

    CNN has reached out to Gallagher’s and McCaul’s offices for comment, but has yet to receive a response.

    Huawei was added to a blacklist in May 2019 by the US Commerce Department over national security concerns. That means companies have to apply for US export licenses to supply technology to Huawei.

    SMIC was also put on the same list in 2020, as US officials were concerned it could use American technology to aid the Chinese military. SMIC has denied having any relationship with the Chinese military.

    “The fact that China has achieved a big breakthrough in [semiconductor] tech will likely create more debate in the US about the effectiveness of sanctions,” said the Jefferies analysts.

    They expect the Biden administration to tighten chips ban on China, which was introduced in October 2022, in the next few months, further limiting China’s access to advanced US semiconductors.

    “Overall the US-China tech war is likely to escalate,” they said.

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  • South Korea’s Hynix is looking into how its chips got into Huawei’s controversial smartphone | CNN Business

    South Korea’s Hynix is looking into how its chips got into Huawei’s controversial smartphone | CNN Business


    Hong Kong/Seoul
    CNN
     — 

    SK Hynix, a South Korean chipmaker, is investigating how two of its memory chips mysteriously ended up inside the Mate 60 Pro, a controversial smartphone launched by Huawei last week.

    Shares in Hynix fell more than 4% on Friday after it emerged that two of its products, a 12 gigabyte (GB) LPDDR5 chip and 512 GB NAND flash memory chip, were found inside the Huawei handset by TechInsights, a research organization based in Canada specializing in semiconductors, which took the phone apart for analysis.

    “The significance of the development is that there are restrictions on what SK Hynix can ship to China,” G Dan Hutcheson, vice chair of TechInsights, told CNN. “Where do these chips come from? The big question is whether any laws were violated.”

    A Hynix spokesperson told CNN Friday that it was aware of its chips being used in the Huawei phone and had started investigating the issue.

    The company “no longer does business with Huawei since the introduction of the US restrictions against the company,” it said in a statement.

    “SK Hynix is strictly abiding by the US government’s export restrictions,” the company said.

    Industry insiders said it was possible that Huawei had purchased the memory chips from the secondary market and not directly from the manufacturer. It’s also possible Huawei may have had a stockpile of components accumulated before the US export curbs kicked in fully.

    TechInsights had previously revealed that the “brains” of the phone were powered by a 5G Kirin 9000s chip made by China’s top chipmaker Semiconductor Manufacturing International Corporation, better known as SMIC.

    It is still examining the Mate 60 Pro and does not rule out the possibility of finding more components made by companies subject to US trade sanctions. So far, it has found that most of the phone’s components were provided by Chinese suppliers.

    Analysts have said the smartphone is a major breakthrough for China as it clashes with the United States over access to advanced technology.

    The development prompted two US congressmen, Mike Gallagher and Michael McCaul, to call on the White House – which is seeking more information about the phone – to further restrict technology export sales to Chinese companies.

    Huawei and SMIC have not replied to requests for comment.

    In 2019, the US government banned American companies from selling software and equipment to Huawei. It also restricted international chipmakers using US-made technology from working with the company.

    That is why, four years later, last week’s launch of the Mate 60 Pro shocked industry experts who didn’t understand how Huawei, which is headquartered in Shenzhen, would have the ability to manufacture such an advanced smartphone following sweeping efforts by the United States to restrict China’s access to foreign chip technology.

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  • Huawei wants to go all in on AI for the next decade | CNN Business

    Huawei wants to go all in on AI for the next decade | CNN Business

    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Huawei has joined the list of companies that want to be all about artificial intelligence.

    For the first time in about 10 years, the Chinese tech and telecoms giant announced its new strategic direction on Wednesday, saying it would shift its focus to AI. Previously, the company had prioritized cloud computing and intellectual property, respectively, over two decade-long periods.

    Meng Wanzhou, Huawei’s rotating chairwoman and chief financial officer, made the announcement in Shanghai during a company event.

    “As artificial intelligence gains steam, and its impact on industry continues to grow, Huawei’s All Intelligence strategy is designed to help all industries make the most of new strategic opportunities,” the company said in a statement.

    Meng said in a speech that Huawei was “committed to building a solid computing backbone for China — and another option for the world.”

    “Our end goal is to help meet the diverse AI computing needs of different industries,” she added, without providing details.

    Huawei’s decision follows a similar move by fellow Chinese tech giant Alibaba (BABA), announced earlier this month, to prioritize AI.

    Other companies, such as Japan’s SoftBank, have also long declared an intent to focus more on the fast-moving technology, and more businesses have jumped on the bandwagon this year due to excitement about platforms such as GPT-4.

    Meng returned to China in September 2021 after spending nearly three years under house arrest in Canada as part of an extradition battle with the United States. She and Huawei had been charged for alleged bank fraud and evasion of economic sanctions against Iran.

    The executive, who is also the daughter of Huawei founder Ren Zhengfei, was able to leave after reaching an agreement with the US Department of Justice and ultimately having her charges dismissed.

    Meng began her role as the rotating chairperson of the company in April and is expected to stay in the position for six months.

    News of Huawei’s strategic update came the same day the company was mentioned in allegations lodged by China against the United States.

    In a statement posted Wednesday on Chinese social network WeChat, China’s Ministry of State Security accused Washington of infiltrating Huawei servers nearly 15 years ago.

    “With its powerful arsenal of cyberattacks, the United States intelligence services have carried out surveillance, theft of secrets and cyberattacks against many countries around the world, including China, in a variety of ways,” the ministry said.

    It alleged that the US National Security Agency (NSA), in particular, had “repeatedly conducted systematic and platform-based attacks on China in an attempt to steal China’s important data resources.”

    Huawei declined to comment on the allegations, while the NSA did not immediately respond to a request for comment outside regular US business hours.

    The claims are especially notable because US officials have long suspected the company of spying on the networks that its technology operates, using it as grounds to restrict trade with the company. Huawei has vehemently denied the claims, saying it operates independently of the Chinese government.

    In 2019, Huawei was added to the US “entity list,” which restricts exports to select organizations without a US government license. The following year, the US government expanded on those curbs by seeking to cut Huawei off from chip suppliers that use US technology.

    In recent weeks, Huawei has added to US-China tensions again after launching a new smartphone that represents an apparent technological breakthrough.

    Huawei launched the Mate 60 Pro, its latest flagship device, last month, prompting a US investigation. Analysts who have examined the phone have said it includes a 5G chip, suggesting Huawei may have found a way to overcome American export controls.

    — Mengchen Zhang contributed to this report.

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  • US says it has no evidence that Huawei can make advanced smartphones ‘at scale’ | CNN Business

    US says it has no evidence that Huawei can make advanced smartphones ‘at scale’ | CNN Business

    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Commerce Secretary Gina Raimondo says the US government has no evidence that Huawei can produce smartphones with advanced chips “at scale,” as it continues to investigate how the sanctioned Chinese manufacturer made an apparent breakthrough with its latest flagship device.

    On Tuesday, Raimondo told US lawmakers that she was “upset” by news of the launch of Huawei’s Mate 60 Pro during her visit to China last month.

    “The only good news, if there is any, is we don’t have any evidence that they can manufacture 7-nanometer [chips] at scale,” she told a US House of Representatives hearing.

    “Although I can’t talk about any investigations specifically, I promise you this: every time we find credible evidence that any company has gone around our export controls, we do investigate.”

    Analysts who have examined the smartphone said it represented a “milestone” achievement for China, suggesting Huawei may have found a way to overcome American export controls.

    US officials have long argued that the company poses a risk to US national security, using it as grounds to restrict trade with the company. Huawei has vehemently denied the claims.

    TechInsights, a research organization that specializes in semiconductors and took the phone apart for analysis, says it includes a 5G Kirin 9000s processor developed by China’s leading chipmaker, Semiconductor Manufacturing International Corporation (SMIC).

    That surprised many because SMIC, a partially state-owned Chinese company, has also been subject to US export restrictions for years. It has not responded to previous requests for comment from CNN.

    TechInsights also found two chips belonging to SK Hynix, a South Korean chipmaker, inside the handset.

    A SK Hynix spokesperson told CNN earlier this month that it was aware of the issue and investigating how that was possible, since the South Korean firm “no longer does business with Huawei” because of US export controls.

    Huawei declined to comment on the capabilities and components of its phone.

    Raimondo said Tuesday that US officials were “trying to use every single tool at our disposal … to deny the Chinese an ability to get intellectual property to advance their technology in ways that can hurt us.”

    In 2019, Huawei was added to the US “entity list,” which restricts exports to select organizations without a US government license. The following year, the US government expanded on those curbs by seeking to cut Huawei off from chip suppliers that use US technology.

    That left the company, once the world’s second largest smartphone seller, in bad shape.

    As of the second quarter of 2023, Huawei was no longer in the top five of mobile phone vendors in China, let alone globally, according to Counterpoint Research.

    But its new phone is a big help for the company — and may pose a challenge to Apple’s (AAPL) market share in China, according to Ivan Lam, a senior analyst at Counterpoint.

    Huawei is scheduled to hold a product launch event next Monday, where new phones are expected to be the main focus, according to Toby Zhu, a Canalys mobility analyst.

    Other devices, like tablets or earphones, may also be shown off. Huawei has not publicly released details of the event.

    In the coming months, the firm plans to release another 5G phone, possibly under Nova, its mid-range lineup, Chinese news outlet IT Times reported Tuesday, citing unidentified industry sources. Huawei declined to comment.

    Zhu said the phone was widely expected to come with 5G capability, powered either by the “Kirin 9000s chip or another chip.”

    If it does, the new model could become even more popular than the Mate 60 Pro, which starts at 6,999 yuan (about $959), because of its relative affordability, he added.

    While Raimondo was unhappy with the timing of Huawei’s launch, analysts say it was unlikely to have been arranged to coincide with her presence in China.

    It was likely “a marketing campaign aimed at winning over customer interest before the iPhone 15 hits the market,” analysts at Eurasia Group wrote in a report.

    The move helped the Shenzhen-based company capture the second spot in China’s smartphone market in the first week of September, ahead of Apple’s big event, said Lam of Counterpoint.

    — Rashard Rose and Mengchen Zhang contributed to this report.

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  • ‘Where is the phone?’ Huawei keeps quiet about Mate 60 Pro but takes aim at Tesla | CNN Business

    ‘Where is the phone?’ Huawei keeps quiet about Mate 60 Pro but takes aim at Tesla | CNN Business

    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Huawei has disappointed legions of fans — and US officials — eager to know more about its Mate 60 Pro smartphone, which has quickly become a symbol of the tech rivalry between the United States and China since it went on sale last month.

    Huawei’s consumer chief, Richard Yu, showed off a slew of new products including a tablet, smartwatch, earphones and even a challenge to Tesla (TSLA) on Monday, without going into detail about its flagship device, which has provoked calls in Washington for more sanctions against the Chinese tech and mobile giant.

    The United States has spent years trying to hobble Huawei’s ability to access the most advanced semiconductors, and the unveiling of its 5G phone in August has taken Western observers by surprise.

    The launch event became the most discussed topic on Chinese social network Weibo, racking up six billion views and 1.6 million posts. Meanwhile, a hashtag titled “#HuaweiConferenceWithoutMentioningMobilePhones,” trended on Weibo, with 24.5 million views.

    “You’re telling me there will be no talk about the phone?” one user wrote on the social network.

    “Where is the phone?” said another.

    Huawei quietly started selling the Mate 60 Pro in August, without a formal launch event or sharing full technical specifications.

    Yu said onstage that the company was “working overtime” to urgently produce devices in the Mate 60 series “to allow more people to buy and use our products.”

    But “today, we will not introduce” those devices, he added.

    At one point, Huawei whetted viewers’ appetite by unveiling a new premium collection called Ultimate Design, introduced by Hong Kong singer and actor Andy Lau.

    The line consists of a luxury smartphone and smartwatch. Few details were released, though the company said the watch was made using bars of real gold — giving it a hefty price tag of 21,999 Chinese yuan ($3,009).

    Ben Sin, an independent tech reviewer, said he was “baffled” as to why Huawei did not discuss its smartphones.

    The company “knows everyone wants to know more about the chip [in the Mate 60 Pro], so them not talking about it is almost like defiance,” he said.

    Analysts who have examined the handset have said it includes a 5G chip, suggesting Huawei may have found a way to overcome American export controls.

    Huawei, formerly the world’s second largest maker of smartphones, has been attempting a comeback in China’s smartphone market after being hit by US export restrictions, which were first imposed in 2019.

    The company’s woes later forced it to sell off its budget mobile brand, Honor, leaving it in bad shape.

    But it is starting to find its way back.

    The firm’s smartphone sales grew in China by 58% in the second quarter of this year, compared to the same period last year, according to Counterpoint Research. Its share of the Chinese market rose from 6.9% to 11.3% over that period.

    Ivan Lam, a senior analyst at Counterpoint, said Huawei benefited from “its high brand exposure to” wealthy Chinese consumers. Because of this, Huawei’s market share in China is expected to further grow in 2024, he added.

    Huawei’s new phone is a boon for the company and may even pose a challenge to Apple’s (AAPL) market share in China, Lam said.

    The Shenzhen-based company has seen a recent “surge in sales” for its Mate 60 series, with weekly sales almost tripling to 225,000 units, according to Counterpoint.

    Yu demonstrated a number of other new products, starting with the latest version of its MatePad Pro, describing it as the lightest and thinnest tablet of its kind in the world. He said the device had been 10 years in the making.

    In addition, the company unveiled a new smart TV, wireless earphones and other gadgets.

    Huawei also took an aggressive swipe at Tesla, saying it would release its first sedan, the Luxeed S7, in November. The car will surpass Tesla’s Model S “in every specification,” said Yu.

    The company plans to release the Aito M9, an SUV, in December. Huawei has partnered with Chinese automakers to produce the two previously announced electric vehicles.

    Yu also announced Huawei was “ready to launch” an updated operating system, HarmonyOS NEXT.

    The system will include “native applications,” Yu said, without elaborating.

    Speculation has mounted that Huawei may be building an operating system that won’t be compatible with any Android apps.

    Huawei did not immediately respond to a request for comment on the matter.

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  • Best of MWC: Screens that roll, ChatGPT interactive glasses

    Best of MWC: Screens that roll, ChatGPT interactive glasses

    BARCELONA, Spain (AP) — The father of the cellphone was there. So was Huawei and a host of other Chinese tech companies. Tens of thousands of visitors also flocked to the MWC tech fair to be dazzled by the latest advances in AI, smartphones, robotics and much more.

    The metaverse got a lot of attention at the show, also known as Mobile World Congress, as companies cash in on the hype surrounding new virtual worlds for work and play.

    SK Telecom’s virtual reality air taxi flight simulator was one of the most popular demonstrations, with long lines to take a virtual ride. There were robot dogs to remotely inspect infrastructure and holograms for virtual learning, along with speeches from wireless industry executives and backroom schmoozing with government officials.

    Some 80,000 people were expected to attend the world’s biggest wireless trade show, which wraps up its four-day run in Barcelona on Thursday.

    Here’s a look at some highlights:

    SCROLL AND FOLD

    While MWC smartphone launches don’t get as much attention as they used to because innovations have slowed, devices with nifty screens took the spotlight.

    Motorola added the wow factor by unveiling a phone with a screen that rolls out. Double tap your fingers on the side, and the display automatically extends from 5 inches long (13 centimeters) to 6.5 inches by unscrolling from the bottom.

    Motorola’s owner, Chinese tech brand Lenovo, also showed off a laptop with a rolling screen, which took about 19 seconds to unscroll to its fully extended position. The company said they’re concept devices and unlikely to hit the market anytime soon.

    Other brands including Samsung and China’s Oppo and Tecno also released their latest folding designs.

    Phones with foldable screens have drawn attention from consumers, but “whether that interest then translates into sales is a different question,” said Gerrit Schneemann, senior analyst at GfK Boutique. “For the next few years, I think they’ll still be a real niche market in the overall smartphone market. Growing, but still — relatively speaking — relatively small.”

    AI CHAT GLASSES

    Artificially intelligent chatbots like ChatGPT have taken the tech world by storm, and U.K. startup XRAI Glass is joining the fray with augmented reality glasses.

    The company’s virtual assistant app was designed to work with smart viewer glasses to help people who are deaf or hard of hearing better understand what’s happening around them. Speech is transcribed from other people nearby and the subtitles are displayed onto the lenses or an attached smartphone.

    Now XRAI (pronounced X-ray) has integrated OpenAI’s ChatGPT technology into its app and glasses setup.

    “People can ask questions such as general knowledge or recipes or anything they like,” CEO Dan Scarfe said. “Or they can actually ask questions of their conversation. So, ‘Hey, XRAI, can you please summarize this conversation?’ Or, ‘Hey, XRAI, what was the name of the town that we were just talking about?’”

    For those with hearing loss, it can be helpful to have an AI assistant recap a conversation in which multiple people were talking, the company says.

    DIGITAL HUMANS

    People might feel better interacting with AI chatbots if they had human faces. That’s the thinking at D-ID, an Israeli startup, which launched a new interface for its “digital human” — essentially an online avatar that can work with AI-chat systems to hold conversations.

    “We had the chatbot in the past. They didn’t work,” said CEO Gil Perry, because they could only answer specific questions with specific answers. Now, “large language models are bringing huge improvements to traditional chatbots.”

    Generative AI systems like ChatGPT can create readable text and hold conversations based on what they’ve learned from so-called large language models — vast databases of digital books, online writings and other media.

    Perry demonstrated by asking a question to the chatbot’s face on his laptop, whose response was eerily lifelike. He said safeguards would prevent D-ID’s technology from being used maliciously.

    “The idea here is not to replace anyone and not to convince anyone that what they’re seeing is true,” Perry said. It’s just that humans are “used to communicating with faces.”

    REMOTE CONTROL CARS

    At German mobility startup Vay’s display, a driver was steering a car around a course marked with pylons. But the car was 1,800 kilometers (1,118 miles) away in Berlin.

    The company’s technology enables cars to be driven by remote “tele-drivers.” So far, so standard.

    The twist is in Vay’s business model, which is a cross between taxi service and car rental. When a user hails a ride, a tele-driver will steer one of its electric cars to the pickup point for the customer, who will take over the driving duties. At the destination, the car will be taken away by a remote driver. No need to park.

    The company says it’s the first in Europe to be allowed to operate cars on public streets without a human driver inside. It has 20 certified tele-drivers so far and plans to launch the service soon in Germany and the U.S.

    “We’re talking, you know, hopefully months,” CEO Thomas von der Ohe said.

    One of the main goals is to rid city streets of cars that are parked and not used for most of the day.

    The service will be “a big step to start creating an alternative so people don’t buy the second car or the third car maybe in the near future,” von der Ohe said. “Also not the first car. ”

    AUGMENTED REALITY EXPERIENCES

    Software company Amdocs demonstrated AR technology that could be used for “next-generation immersive experiences” for both fans and security staff at big-ticket sports games.

    For example, soccer fans attending a match in person could buy a package of extras for their AR glasses, including exclusive replay videos and live stats shown on their lenses to “augment” their game experience.

    The same glasses also could be used as an extra tool for security staff at the game, with additional safety features including a security database.

    In a simulation at MWC, guards were alerted to rowdy fans trying to climb the gates. A known soccer hooligan was flagged on the database, his face and details flashing up on the lenses.

    Users, viewing the scene from the guard’s perspective, scanned the crowd as the glasses picked out faces before identifying the suspect so he could be apprehended — an unsettling display bordering on Orwellian.

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  • US is reviewing Huawei export license policy amid rising congressional scrutiny of China | CNN Business

    US is reviewing Huawei export license policy amid rising congressional scrutiny of China | CNN Business


    Washington
    CNN
     — 

    The US government is reviewing a policy that permits certain US exports to continue to Huawei, despite an overall push by the Trump and Biden administrations to block the Chinese telecommunications giant from receiving American technology.

    Alan Estevez, a Commerce Department official, told lawmakers Tuesday that the policy is “under assessment” as the agency conducts a “top-to-bottom review of our export control policies related to the [People’s Republic of China].”

    Estevez testified before the House Foreign Affairs Committee, which was holding a hearing to scrutinize China’s impact on US national security.

    In 2019, Huawei was one of a number of Chinese companies placed on the Commerce Department’s Entity List, which prohibits US companies from trading specified items with entities named on the list unless they obtain a license to do so.

    US officials have expressed concerns that Huawei’s 5G wireless networking gear could allow the Chinese government to spy on American communications. Huawei has denied that it poses a security risk, and its founder has said the company would resist any Chinese government effort to obtain its data.

    According to Foreign Affairs Committee chairman Michael McCaul, between January and March of 2022 the Commerce Department approved more than $23 billion in license applications to trade with Chinese-affiliated companies on the Entity List. Confronting Estevez at Tuesday’s hearing, McCaul asked the Commerce Department to square the license approvals with the US government’s wider effort to sideline Huawei and similar companies.

    “A licensing rule of the previous administration that still stands for Huawei allows things below 5G, below cloud-level to go,” Estevez said, “and I will say that all those things are under assessment.”

    Entity List restrictions do not provide for a “blanket embargo” on exports generally, Estevez added, but rather reflect specific rules about particular exports.

    Separately, in 2020 the Commerce Department moved to prevent Huawei’s suppliers from selling the company semiconductor chips made by US-built software and equipment, unless those suppliers also obtained a license.

    Other parts of the US government have also moved against Huawei. The Federal Communications Commission has prohibited US wireless carriers from using federal funding to purchase Huawei networking gear, and last year also banned future approvals of Huawei equipment for sale in the United States, in the first use of the FCC’s equipment authorization authority for a national security purpose.

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  • Huawei dominates MWC mobile tech fair despite US sanctions

    Huawei dominates MWC mobile tech fair despite US sanctions

    BARCELONA, Spain (AP) — A contingent of Chinese companies led by technology giant Huawei is turning the world’s biggest wireless trade fair into an opportunity to show their muscle in the face of Huawei’s blacklisting by Western nations concerned about cybersecurity and escalating tensions with the U.S. over TikTok, spy balloons and computer chips.

    After three years of pandemic disruption, they are among tens of thousands in Barcelona for MWC, also known as Mobile World Congress, an annual tech industry expo starting Monday where mobile phone makers show off new devices and telecom industry executives peruse the latest networking gear and software.

    Out of 2,000 exhibitors and sponsors, 150 are Chinese companies and Huawei Technologies Ltd. has the biggest presence. The smartphone and network equipment maker expanded its footprint by 50% from last year and is taking up almost an entire vast exhibition hall at Barcelona’s Fira convention center, organizers said.

    That is striking considering that Huawei has been at the center of a geopolitical battle over global technology supremacy that’s left parts of its business crippled by Western sanctions.

    The U.S. three years ago successfully pushed European allies like Britain and Sweden to ban or restrict Huawei equipment in their phone networks over fears Beijing could use it for cybersnooping or sabotaging critical communications infrastructure — allegations Huawei has denied repeatedly. Japan, Australia, New Zealand and Canada have taken similar action.

    Brian Chamberlin, executive adviser at Huawei’s wireless carrier group, said “the sanctions have had a big impact” but the company is “not going to try to break any of those rules.”

    “But at the same time, that’s not going to slow us down from delivering innovation, innovative solutions,” he said at the expo. “We will continue to do business with companies and countries that want our support.”

    Huawei’s supersized presence at the show is a sign of defiance, said John Strand, a Danish telecom industry consultant.

    Huawei wants to “give Biden the finger,” Strand said of the U.S. president. The company’s message, he said, is: “Despite the American sanctions, we are alive and kicking and doing so well.”

    U.S.-China tech tensions have only grown.

    A suspected Chinese spy balloon downed by a U.S. fighter jet sparked acrimony between Beijing and Washington in recent weeks.

    U.S. authorities have banned TikTok from devices issued to government employees over fears the popular Chinese-owned video sharing app is a data privacy risk or could be used to push pro-China narratives.

    The U.S. also is seeking to restrict China’s access to equipment to make advanced semiconductors, signing up key allies Japan and the Netherlands.

    That followed the MWC expo four years ago becoming a battleground between the U.S. and China over Huawei and the security of next generation wireless networks. In a keynote speech, a top Huawei executive trolled the U.S. over its push to get allies to shun the company’s gear.

    Huawei hasn’t gone away, and the dispute continues to simmer. Washington widened sanctions last month with new curbs on exports to Huawei of less advanced tech components.

    Still, the company has maintained its status as the world’s No. 1 maker of network gear thanks to sales in China and other markets where Washington hasn’t been so successful at persuading governments to boycott the company.

    Strand, who has been attending MWC for 26 years, said Huawei wants to show the world it’s pivoting away from mainly making networking gear — the hidden plumbing such as base stations and antennas connecting the world’s mobile devices — and becoming an all-round tech supplier.

    The company is reinventing itself by supplying hardware and software for cargo ports, self-driving cars, factories and other industries it hopes are less vulnerable to Washington.

    “Since MWC is a global event, they (Huawei) will want to communicate on this and showcase that they are still a key player in the telecom and high-tech industry,” said Thomas Husson, a principal analyst at Forrester Research.

    The company’s presence is so big simply because of “pent-up demand,” said Chamberlin of Huawei.

    “We have been locked into China for the past three years due to the COVID restrictions. So this is really the first time we’ve been able to engage with our customers,” he said.

    Huawei also makes smartphones but sales outside China cratered after Google was blocked from providing maps, YouTube and other services that usually come preloaded on Android devices.

    “The Huawei consumer brand has collapsed in Europe,” Husson said. At MWC, “Huawei may well announce new consumer smartphones and new consumer devices, but the brand has lost momentum and these announcements are primarily for fast-growing markets outside the U.S. and Western Europe.”

    At Huawei’s pavilion, staff showed visitors the latest 5G antennas alongside equipment for older generations of cellular networks that still account for much of the company’s business. Optical networking switches and new flexible fiber cable for home networking were displayed inside a VIP area, while smartphones and other consumer devices like earbuds were laid out at the entrance.

    Huawei is just part of the larger Chinese delegation, whose turnout is getting a boost from China lifting all COVID-19 travel restrictions. ZTE, another Chinese tech company that had been sanctioned by the U.S., plans product launches at MWC.

    Chinese mobile phone makers Honor, Oppo and Xiaomi will have a strong presence, said Ben Wood, chief analyst at CCS Insight. Honor was Huawei’s budget brand but was sold off in 2020 in hopes of reviving sales by separating it from the sanctions on its corporate parent.

    “The removal of COVID restrictions in China has made it possible for these manufacturers to attend the show in force,” Wood said. “They are all keen to establish themselves as the ‘third alternative’ to Apple and Samsung in European markets and see MWC as a pivotal event to do that.”

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  • China says it is ‘deeply concerned’ about reports of the latest US clampdown on Huawei | CNN Business

    China says it is ‘deeply concerned’ about reports of the latest US clampdown on Huawei | CNN Business


    Hong Kong
    CNN
     — 

    China has hit back after reports that Washington is moving to further restrict sales of American technology to Huawei.

    “China is deeply concerned,” Mao Ning, a spokesperson for the country’s foreign ministry, said at a press conference Tuesday.

    The Financial Times reported earlier that the US Commerce Department had notified some companies that it would no longer grant licenses for any company to export American technology to Huawei, citing unidentified people familiar with the matter.

    Bloomberg also reported, citing anonymous sources, that officials were considering cutting off Huawei from all US suppliers, though it noted that a decision had not yet been made.

    “We are closely following relevant developments,” Mao said.

    “China firmly opposes the United States’ generalization of the concept of national security, abuse of state power, and unreasonable suppression of Chinese companies,” she told reporters, adding that such a move would “violate international economic and trade rules.”

    Mao vowed that Beijing would “firmly safeguard the legitimate rights and interests of Chinese companies.”

    Huawei declined to comment on the reports, while the Commerce Department did not immediately respond to a request for comment outside US business hours.

    Huawei’s ties to the world’s biggest economy have already been curtailed in recent years as Washington continuously clamps down on the Chinese tech giant.

    In 2019, Washington added the company to the so-called “entity list,” which restricts exports to select organizations without a US government license. The following year, the US government expanded on those curbs by seeking to cut Huawei off from chip suppliers using US-made technology.

    US officials have argued that Huawei poses a risk to US national security.

    Huawei has vehemently denied such claims, and its founder and CEO has repeatedly said the company would never hand data over to the Chinese government. Western security experts, however, have said that China’s national security and intelligence laws require Chinese companies to comply with demands for information.

    — CNN’s Brian Fung and Juliana Liu contributed to this report.

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  • Huawei says it’s out of ‘crisis mode,’ though revenue flat

    Huawei says it’s out of ‘crisis mode,’ though revenue flat

    HONG KONG (AP) — Chinese technology giant Huawei says it has emerged from “crisis mode” after years of U.S. restrictions that have stifled its overseas sales, even though its revenue for 2022 failed to grow from a year earlier.

    “U.S. restrictions are now our new normal, and we’re back to business as usual,” Eric Xu, Huawei’s current chairman, said in a New Year’s message released Friday.

    Huawei Technologies Ltd., China’s first global tech brand, has struggled since then-U.S. President Donald Trump blocked its access to U.S. processor chips and other technology in 2019 on grounds that Huawei could facilitate Chinese spying.

    Huawei denies accusations that it could be a security risk.

    Huawei’s unaudited revenue for 2022 is forecast to be 636.9 billion yuan ($91.6 billion) — nearly unchanged compared to a year earlier and in line with earlier estimates.

    Xu said in the message that the firm’s telecommunications network business maintained “steady growth” and that a decline in its devices sector — mainly phones — had abated.

    He also said that the firm achieved “rapid growth” in its cloud business.

    Huawei did not release more detailed financial figures for its businesses or the firm’s overall profit.

    For the coming year, Xu pledged to maintain Huawei’s heavy investment in research and development and said that its cloud business needs to become the “foundation” in driving growth.

    He mentioned the pandemic only in passing, praising the company’s “frontline staff outside of China — those who have held the fort to serve our customers despite the adverse impacts of COVID-19 …”

    Xu’s message did not mention the recent abrupt end to stringent virus controls or major outbreaks of coronavirus now sweeping China and other countries.

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  • Huawei says it’s out of ‘crisis mode,’ though revenue flat

    Huawei says it’s out of ‘crisis mode,’ though revenue flat

    Chinese technology giant Huawei says it has pulled itself out of “crisis mode” following years of U.S. restrictions that have stifled its sales in overseas markets, though its revenue for 2022 did not grow from a year earlier

    HONG KONG — Chinese technology giant Huawei says it has emerged from “crisis mode” after years of U.S. restrictions that have stifled its overseas sales, even though its revenue for 2022 failed to grow from a year earlier.

    “U.S. restrictions are now our new normal, and we’re back to business as usual,” Eric Xu, Huawei’s current chairman, said in a New Year’s message released Friday.

    Huawei Technologies Ltd., China’s first global tech brand, has struggled since then-U.S. President Donald Trump blocked its access to U.S. processor chips and other technology in 2019 on grounds that Huawei could facilitate Chinese spying.

    Huawei denies accusations that it could be a security risk.

    Huawei’s unaudited revenue for 2022 is forecast to be 636.9 billion yuan ($91.6 billion) — nearly unchanged compared to a year earlier and in line with earlier estimates.

    Xu said in the message that the firm’s telecommunications network business maintained “steady growth” and that a decline in its devices sector — mainly phones — had abated.

    He also said that the firm achieved “rapid growth” in its cloud business.

    Huawei did not release more detailed financial figures for its businesses or the firm’s overall profit.

    For the coming year, Xu pledged to maintain Huawei’s heavy investment in research and development and said that its cloud business needs to become the “foundation” in driving growth.

    He mentioned the pandemic only in passing, praising the company’s “frontline staff outside of China — those who have held the fort to serve our customers despite the adverse impacts of COVID-19 …”

    Xu’s message did not mention the recent abrupt end to stringent virus controls or major outbreaks of coronavirus now sweeping China and other countries.

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  • US bans Huawei, ZTE equipment sales amid Chinese spying fears | CNN

    US bans Huawei, ZTE equipment sales amid Chinese spying fears | CNN

    The Biden administration has banned approvals of new telecommunications equipment from China’s Huawei Technologies and ZTE because they pose “an unacceptable risk” to US national security.

    The US Federal Communications Commission said on Friday it had adopted the final rules, which also bar the sale or import of equipment made by China’s surveillance equipment maker Dahua Technology, video surveillance firm Hangzhou Hikvision Digital Technology and telecoms firm Hytera Communications.

    The move represents Washington’s latest crackdown on the Chinese tech giants amid fears that Beijing could use Chinese tech companies to spy on Americans.

    “These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications,” FCC Chairwoman Jessica Rosenworcel said in a statement.

    Huawei declined to comment. ZTE, Dahua, Hikvision and Hytera did not immediately respond to requests for comment.

    Rosenworcel circulated the proposed measure, which effectively bars the firms from selling new equipment in the United States, to the other three commissioners for final approval last month.

    The FCC said in June 2021 it was considering banning all equipment authorizations for all companies on the covered list.

    That came after a March 2021 designation of five Chinese companies on the so-called “covered list” as posing a threat to national security under a 2019 law aimed at protecting US communications networks: Huawei, ZTE, Hytera Communications Corp Hikvision and Dahua.

    All four commissioners at the agency, including two Republicans and two Democrats, supported Friday’s move.

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  • Blinken in Canada: Haiti military force ‘work in progress’

    Blinken in Canada: Haiti military force ‘work in progress’

    VANCOUVER, Canada — The U.S. and Canada will work together to “cut the insecurity knot” that has allowed gangs to create a humanitarian crisis in Haiti, U.S. Secretary of State Antony Blinken said Thursday.

    But neither Blinken nor Canadian Foreign Affairs Minister Melanie Joly committed their country to leading a military force to the Caribbean nation.

    “This is a work in progress and we are continuing to pursue it,” Blinken told a news conference in Ottawa during his first visit to Canada.

    Blinken said Canada and the U.S. agree that “more likely needs to be done” to support the Haitian national police to restore their grip on security.

    “We’ve been talking about what that might look like,” said Blinken. “We have both been talking to a variety of countries to gauge their interest in and willingness to participate in that.”

    Joly said Canada has sent an “assessment mission” to gather information to find the solutions that are supported by Hattians.

    Haiti’s interim government has operated in chaos since the July 2021 assassination of former president Jovenel Moise.

    Since September, armed gangs have been blockading fuel access, leading to a shortage of basic goods, clean water and medical services, all during a cholera outbreak.

    Canada and the U.S. have sent tanks, and the United Nations is considering a military intervention to restore order, which has been endorsed by Secretary-General Antonio Guterres.

    Later, prior to a meeting with Canadian Prime Minister Justin Trudeau, Blinken said Canada and the U.S. “are the two most integrated countries in the world” and have a history of working together to solve issues.

    “Not one of the problems that is having an effect on our own people or what we need to deal with around the world can be solved by one of us acting alone,” he said. “The more we find ways to cooperate, to work together, the more effective we’re going to be.”

    During the news conference Blinken and Joly reiterated their support for Ukraine, condemned Iran for its treatment of women and for supplying drones to Russia, and pledged to work together to increase Arctic security.

    Blinken called Russia’s use of Iranian drones to kill Ukrainian civilians and destroy infrastructure as “appalling.”

    “We keep working with our allies and partners to deter and counter Iran’s provision of these weapons,” he said.

    Joly said Canada said stands with the women and girls in Iran who are fighting against tyranny.

    “Women’s rights are human rights,” she said. “We have a moral obligation to support the brave women of Iran and hold those persecuting them accountable.”

    There have been protests across Iran sparked by the death of Mahsa Amini who died in police custody after being arrested for allegedly wearing her hijab “improperly”.

    Blinken also touched on Canadian and U.S. citizens being held by other countries.

    Canadians Michael Spavor and Michael Kovrig were held in China for over 1,000 days in what was seen as a retaliation for the arrest in Canada of Huawei CFO Meng Wanzhou.

    U.S. basketball star Brittney Griner is facing a nine-year jail term in Russia after being convicted of smuggling and possessing cannabis oil.

    “We support Canada’s efforts to rally countries around the world in ending the unlawful practice of detaining innocent individuals and using them as political pawns,” said Blinken. “Both our countries have suffered from this.”

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  • 2 Chinese officers charged in plot to obstruct Huawei probe

    2 Chinese officers charged in plot to obstruct Huawei probe

    WASHINGTON — Two men suspected of being Chinese intelligence officers have been charged with attempting to obstruct a U.S. criminal investigation and prosecution of Chinese tech giant Huawei, according to court documents unsealed Monday.

    The two men, Guochun He and Zheng Wang, are accused of trying to direct a person with the U.S. government whom they believed was a cooperator to provide confidential information about the Justice Department’s investigation, including about witnesses, trial evidence and potential new charges. One of the defendants paid about $61,000 for the information, the Justice Department said.

    The person the men reached out to began working as a double agent for the U.S government, and his contacts with the defendants were overseen by the FBI. At one point last year, prosecutors say, the unnamed person passed to the defendants a single-page document that appeared to be classified as secret and that contained information about a purported plan to charge and arrest Huawei executives in the U.S.

    But the document was actually prepared by the government for the purposes of the prosecution that was unsealed Monday, and the information in it was not accurate.

    The company is not named in the charging documents, though the references make clear that it’s Huawei, which was charged in 2019 with bank fraud and again the following year with new charges of racketeering conspiracy and a plot to steal trade secrets.

    Top FBI and Justice Department officials scheduled a Monday afternoon news conference to discuss a national security matter involving a foreign influence campaign. They did not say whether this case was what would be discussed.

    The Justice Department has issued arrest warrants for the pair, but it’s not clear whether they will ever be taken into custody.

    Spokespeople for Huawei and the Chinese Embassy in Washington did not immediately return messages seeking comment.

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  • FCC could ban all new purchases of Huawei and ZTE telecom gear | CNN Business

    FCC could ban all new purchases of Huawei and ZTE telecom gear | CNN Business


    Washington
    CNN Business
     — 

    The US government is poised to ban all future telecom equipment produced by Huawei and ZTE, two Chinese technology giants, from the American market in an expanding crackdown against perceived national security risks from China, according to a person familiar with the matter.

    The restrictions, outlined in a draft order by the Federal Communications Commission, would also target video surveillance gear by three other Chinese firms: Hytera, Hikvision and Dahua, the person said, adding that the ban would only apply to new products by the companies that have not already received FCC equipment authorization.

    A vote to approve the measure is expected before mid-November, the person added. The draft order was first reported by Axios.

    Asked for comment, an FCC official confirmed the proposal’s existence and told CNN that, if approved, it would update agency rules surrounding its list of providers deemed to be unacceptable national security risks — and fulfill the agency’s congressional mandate under the Secure Equipment Act of 2021.

    That bipartisan legislation, signed by President Joe Biden last November, required the FCC to develop rules within one year to stop reviewing or approving devices made by the covered companies.

    All electronics that can emit radio frequencies must undergo an FCC authorization process before they can be sold in the United States. The long-established process is intended to keep devices out of the US market that may produce harmful signal interference. But under the draft order the FCC would, for the first time, apply a national security interest to the equipment authorization process, the person said.

    “The FCC remains committed to protecting our national security by ensuring that untrustworthy communications equipment is not authorized for use within our borders, and we are continuing that work here,” FCC Chairwoman Jessica Rosenworcel said in a statement provided to CNN Business on Thursday.

    In a separate statement, Republican commissioner Brendan Carr said: “The FCC has determined that Huawei, ZTE, and similar gear pose an unacceptable risk to our national security. That is why I have urged the FCC to stop reviewing and approving that equipment for use in the U.S. I look forward to achieving that result.”

    Spokespeople for the companies didn’t immediately respond to requests for comment.

    The proposed ban would go further than prior steps the FCC has taken against Huawei and ZTE, whose networking equipment US officials have said could be used to intercept or monitor US communications.

    Previously, the FCC restricted US telecom carriers from using federal funding to purchase products from Huawei and ZTE, as well as from other providers on the agency’s so-called “covered list.” Later, officials such as Carr highlighted how the products were still available to carriers through the use of non-federal funding, and said the FCC should use its equipment authorization powers to effectively block them from the United States entirely.

    Biden’s subsequent signing of the Secure Equipment Act started a one-year clock for the FCC to put those restrictions into place.

    The FCC has also established a program to help carriers “rip and replace” Huawei and ZTE gear from their networks, though the program’s estimated cost has ballooned to $5.6 billion, up from initial estimates of around $2 billion.

    The top US wireless carriers have said they do not use Chinese-made equipment; telecom policy experts have said it is almost exclusively found in the networks of small providers seeking to minimize costs.

    Separately, in 2019, the Trump administration added Huawei to the Commerce Department’s so-called Entity List, which restricts exports to people and organizations named on the list without a US government license. The following year, the US government expanded on those restrictions by seeking to cut Huawei off from its chip suppliers that use US-made technology.

    The policies have contributed to sharp declines in Huawei’s telecom and handset businesses as the company has sought to shift focus to cars, cloud computing and its own mobile operating system.

    Huawei’s founder and CEO has previously claimed the company would never hand data over to the Chinese government, but western security experts have said the country’s national security and intelligence laws require Chinese companies to comply with demands for information.

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  • Seagate to pay $300 million penalty for shipping Huawei hard drives in violation of US export control laws | CNN Business

    Seagate to pay $300 million penalty for shipping Huawei hard drives in violation of US export control laws | CNN Business



    Reuters
     — 

    Seagate Technology has agreed to pay a $300 million penalty in a settlement with US authorities for shipping over $1.1 billion worth of hard disk drives to China’s Huawei in violation of US export control laws, the Department of Commerce said on Wednesday.

    Seagate

    (STX)     sold the drives to Huawei between August 2020 and September 2021 despite an August 2020 rule that restricted sales of certain foreign items made with US technology to the company. Huawei was placed on the Entity List, a US trade blacklist, in 2019 to reduce the sale of US goods to the company amid national security and foreign policy concerns.

    The penalty represents the latest in a string of actions by Washington to keep sophisticated technology from China that may support its military, enable human rights abuses or otherwise threaten US security.

    Seagate shipped 7.4 million drives to Huawei for about a year after the 2020 rule took effect and became Huawei’s sole supplier of hard drives, the Commerce Department said.

    The other two primary suppliers of hard drives ceased shipments to Huawei after the new rule took effect in 2020, the department said. Though they were not identified, Western Digital

    (WDC)     and Toshiba

    (TOSBF)     were the other two, the US Senate Commerce Committee said in a 2021 report on Seagate.

    The companies did not respond to requests for comment.

    Even after “its competitors had stopped selling to them … Seagate continued sending hard disk drives to Huawei,” Matthew Axelrod, assistant secretary for export enforcement at the Commerce Department’s Bureau of Industry and Security said in a statement. “Today’s action is the consequence.”

    Axelrod said the administrative penalty was the largest in the history of the agency not tied to a criminal case.

    Seagate’s position was that its foreign-made drives were not subject to US export control regulations, essentially because they were not the direct product of US equipment.

    “While we believed we complied with all relevant export control laws at the time we made the hard disk drive sales at issue, we determined that … settling this matter was the best course of action,” Seagate CEO Dave Mosley said in a statement.

    In an order issued on Wednesday, the government said Seagate wrongly interpreted the foreign product rule to require evaluation of only the last stage of its manufacturing process rather than the entire process.

    Seagate made drives in China, Northern Ireland, Malaysia, Singapore, Thailand and the United States, the order said, and used equipment, including testing equipment, subject to the rule.

    In August, the US Department of Commerce sent the company a “proposed charging letter,” warning the company that it may have violated export control laws. The letter kicked off some eight months of negotiations.

    Seagate’s $300 million penalty is due in installments of $15 million per quarter over five years, with the first payment due in October. It also agreed to three audits of its compliance program, and is subject to a five-year suspended order denying its export privileges.

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