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Google and Facebook Gave Up on Hong Kong Submarine Cable Plan

Well-known Chinese news site Sohu (NASDAQ: SOHU) recently reported that the Google and Facebook joint venture plan of laying new submarine cable now officially dropped the U.S.-to-Hong Kong segment. The two quickly adjusted and submitted a new plan to connect with the Philippines and Taiwan. The adjusted pacific fiber cable plan eliminated the earlier partner named Pacific Optical Data Communications, headquartered in Hong Kong. The move was in response to the objection from multiple U.S. government organizations, including the FCC and the Justice Department, as well as several U.S. national security agencies. In April, Google obtained a six-month temporary permit to proceed. The new plan is the official amendment to the original application. The FCC confirmed the national security concerns. Google validated the report and ensured the public that the application is going through the proper channels for final approval. A Facebook representative encouraged people to check the official FCC filing information for more details.

Source: Sohu, August 30, 2020

SETN: Indian Government Is Silently Removing Huawei

Sanlih, one of the primary Taiwanese TV stations, recently reported that, with the worsening of the China-India relationship, the movement inside the Indian government to eliminate Huawei’s presence in India has been expanding quietly. Although India has not officially announced a ban on Huawei and ZTE, yet multiple central government ministers have been telling the Indian domestic telecommunications companies to avoid deploying equipment made in China, including 5G network equipment. A high-ranking executive from India’s top communications service provider said the government has already blocked all Chinese bidders from having access to India’s 5G network tests. “It’s now very clear – it’s game over,” said this anonymous source. India is the world’s second largest mobile telecommunications market, with 850 million users. Huawei was established as a major supplier for all three of India’s top telecommunications providers. If the government were to ban Huawei, it would be a massive setback for Huawei. Another government source suggested that India may not issue an official ban to avoid angering China; however, the Modi administration has been “on high alert.”

Source: SETN, August 25, 2020

TechNews: Huawei Urges Suppliers to Ship before the U.S. Ban

Taiwanese technology news site TechNews recently reported that Huawei has lately switched to “survival mode” and is trying to establish a large enough chip stock before the U.S. ban takes effect on September 14. According to sources familiar with the matter from among Huawei’s key Taiwanese suppliers, namely MediaTek, Realtek, Novatek and RichWave, Huawei has been calling suppliers at 4 AM in the morning or setting up midnight teleconferences urging them to sending shipments. Samsung, SK Hynix, and even optical lens manufacturers are also rushing their shipments due to the fact that all these vendors use U.S. technology. In some cases, Huawei obtained agreements from suppliers to ship half-made products or products that have not yet passed the quality assurance (QA) processes. However, one of the largest Huawei suppliers, MediaTek, issued a statement clarifying that they will not ship any products without QA. Some companies declined to comment on the inquiry.

Source: TechNews, August 26, 2020

LTN: Huawei Came up with New Method to Avoid U.S. Sanctions

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, with the United Stated continuously tightening up sanctions against Huawei in order to cut off its chip-making capabilities, leading U.S. Electronic Design Automation (EDA) vendor Synopsys saw strong growth. The source of the growth came mainly from China. Many integrated Circuit (IC) companies in China suddenly started purchasing chip design software on a large scale. This type of software is on the Huawei sanction list, so Huawei can no long purchase licenses. Synopsys, along with two other U.S. companies Cadence and ANSYS, plus the German vendor Siemens, control over ninety percent of the global chip design software market. Chinese local governments were also found to be purchasing U.S. EDA software. IT Experts from Japan expressed the belief that it is highly likely Huawei can use Chinese chip design firms to perform the design work previously done by its own branch named HiSilicon. All it takes is for HiSilicon to send a group of semiconductor engineers to a small local firm to bypass U.S. sanctions on software completely.

Source: LTN, August 21, 2020

CCP Controlled Media Attacked Zuckerberg

The U.S. Congress held a hearing on the how the Chinese government steals U.S. Technology. Mark Zuckerberg, the co-founder of Facebook, was the only CEO among the four at the hearing who stated firmly that China definitely steals U.S. technology.

As a result, an article criticizing Zuckerberg was published widely on Chinese media. The Chinese Communist Party (CCP) controls all media in China. The article was titled, “This ‘TikTok Slaughter Battle’ completely tore off Zuckerberg’s mask as the ‘Chinese people’s good son-in-law.’” Since the parents of Zuckerberg’s wife Priscilla Chan were Chinese refugees who fled Vietnam, Beijing had been calling Zuckerberg “the Chinese people’s good son-in-law.”

The article said that Mark Zuckerberg (of Facebook), Tim Cook of Apple, Sundar Pichai of Google, and Jeff Bezos of Amazon participated in the hearing remotely.

A congressman asked, “Do you think that the Chinese government steals U.S. technologies?”

Cook, “No.”

Pichai, “No.”

Bezos, “I only heard it on newspaper, but it didn’t happen to Amazon.”

Zuckerberg, “I believe that China’s stealing technology from U.S. tech companies is well-documented.”

The article then said that Zuckerberg had tried many things for several years to get Beijing to let Facebook enter China, but after he could not do it, he revealed his true face and, last year, became hostile towards China.

The article blamed him for having a double standard when closing several Facebook accounts, which Zuckerberg said to be connected to the Chinese government, for spreading “fake news” about Hong Kong; for using the “China threat” theory to promote his virtual currency; and for trying to destroy TikTok, his rival.

Source:, August 4, 2020

China’s New Policies to Support Domestic Chip-Making

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, as a result of  the heavy U.S. pounding on China’s chip supply chains, China just announced major policies to support the Chinese integrated circuit Industry. The Chinese State Council released its comprehensive policies for the chip industry and the development of the software industry. These include strategic policies on financial and tax support, investment support, research and development support, and import/export support, as well as talent pooling support. This new strategic policy document is a natural extension of the No. 18 document in 2000, and the No. 4 document in 2011. The new policy document focuses on core technologies with tangible plans, like a 10-year tax free incentive for chip-making processes below 28 nano-meters. The new policies also recognize the need for more government subsidies.

Source: Sina, August 7, 2020

Global Times: Trump’s “Black Hand” on WeChat Now Worries Apple

Global Times recently reported that the U.S. presidential order to ban TikTok and WeChat in 45 days has triggered U.S. domestic concerns on damages it can cause to U.S. product sales in the Chinese market. For example, Bloomberg had a report expressing the worry that the Trump ban on all transactions related to WeChat may disallow Apple from offering WeChat in its AppStore. As most people know, WeChat has penetrated very deeply into the day-to-day life of the Chinese population. It is the top app that over one billion people use widely for shopping, payments, and other daily activities in commerce and gaming. Without being able to download WeChat from its AppStore, Chinese consumers may not want to buy an iPhone any more. The Chinese market takes 20 percent of the iPhone’s total sales. Losing WeChat can be a big obstacle for Apple to sell iPhones. Additionally, Trump’s order may cause retaliation from the Chinese government on the sides of manufacturing capacity and raw material supply (like rare earth metals). Huawei cellphones may turn out to benefit from this new ban.

Source: Global Times, August 8, 2020