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Huawei’s Net Profit Dropped 68.7 Percent Last Year

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that Huawei released its 2022 annual report. The report shows that Huawei’s global sales revenue was RMB 642.3 billion yuan (around US$93.5 billion), a year-over-year increase of 0.9 percent, and its net profit was RMB 35.6 billion yuan (around US$518 million), a sharp decrease of 68.7 percent year-over-year. In 2022, Huawei’s sales in the high-end smartphone market fell sharply by 44 percent year-over-year, and its share in the high-end smartphone market further dropped from 5 percent in 2021 to 3 percent. Regarding Huawei’s return to the 5G smartphone market, Huawei’s rotating chairman responded that the mobile phone business has been most affected by the U.S. sanctions, from the second in the world to “others.” Currently Huawei can only make 4G phones. To buy a Huawei 5G mobile phone, one would have to wait for permission from the U.S. Department of Commerce. Huawei also confirmed its strategy of not building cars, but helping car companies build good cars. According to Huawei’s CFO, in 2022, Huawei’s operations faced greater pressure. Overall, the operating performance was in line with expectations. At the end of 2022, Huawei’s asset-liability ratio was 58.9 percent  and its net cash balance was RMB 176.3 billion yuan (around US$25.7 billion), showing a stable financial position.

Source: Sina, March 31, 2023
https://cj.sina.com.cn/articles/view/7501277582/1bf1c698e02001dxw4

BBC Asked Staff to Delete TikTok

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the BBC urged staff to delete TikTok from company phones, becoming the latest international media outlet to ban the Chinese social media app. The BBC distributed a staff guide saying, “We advise against installing TikTok on BBC equipment unless there is a legitimate business reason. If you don’t need TikTok for business reasons, you should remove TikTok.” Earlier, the UK government banned TikTok on government-issued phones because the app is owned by the Chinese company ByteDance. The BBC, which is funded by the British government, explained that the decision was based on concerns raised by government authorities worldwide regarding data privacy and security. For staff who have TikTok installed on their personal phones but also use those devices for work reasons, the BBC asked them to contact the media’s information security team to discuss “the type of BBC information you are dealing with.” A BBC spokesperson said: “The BBC takes the safety and security of our systems, data and people incredibly seriously. We constantly review activity on third-party platforms – including TikTok – and will continue to do so.” The BBC is the latest media outlet to issue a ban on TikTok. On March 9, the Danish Broadcasting Corporation (DR) advised employees not to use TikTok on their work phones.

Source: NetEase, March 20, 2023
https://www.163.com/dy/article/I08T5DU4055623ZE.html

TikTok Faced Bans in Britain, Belgium, Demark and New Zealand

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that British cabinet minister Oliver Dowden announced in the House of Commons that the British government will ban government staff from using the Chinese app TikTok on official mobile phones. The ban then took effect immediately. The UK’s move is in line with the U.S. and the European Commission, marking a “180-degree shift” in the UK’s previous position.

Earlier, United Daily News (UDN), one of the primary Taiwanese news groups, also reported that the Belgian Prime Minister said on March 10, because of concerns about online security, privacy and disinformation, that, for at least six months, Belgium will temporarily ban the use of TikTok on devices owned or paid for by the Belgian federal government. In the meantime, the Danish public broadcaster and TV station Danish Broadcasting Corporation (DR) advised employees not to use TikTok on business mobile phones due to security concerns. This is the first news organization to issue such an advice.

In addition, the New Zealand Chinese online news site Solace Media also reported that Rafael Gonzalez-Montero, chief executive of Parliamentary Services, said that, following the advice from cybersecurity experts, Parliamentary Services have informed Members of Parliament and staff that TikTok should be removed from all devices that have access to Parliament’s network.

Sources:
(1) Sina, March 16, 2023
https://k.sina.com.cn/article_1686546714_6486a91a02001unh8.html?from=news&subch=onews
(2) UDN, March 10, 2023
https://udn.com/news/story/7332/7024437?from=udn-relatednews_ch2
(3) Solace Media, March 17, 2023
https://bit.ly/42jEnPB

LTN: Russia Banned China’s WeChat

Major Taiwanese news network Liberty Times Network (LTN) recently reported that the Russian Federal Communications, Information Technology and Mass Media Supervision Agency (Roskomnadzor) issued a statement stating that Russian government officials are prohibited from using some communications software developed and operated by foreign companies, including Discord, Teams, Skype for Business, Snapchat, Telegram, Threema, Viber, WhatsApp, and China’s WeChat. After the news spread across China, Chinese netizens ridiculed the government’s whining about the U.S. ban of TikTok. Last month the U.S. banned the TikTok use across federal agencies. In response to the U.S. ban, Chinese Foreign Ministry spokesperson said, “The U.S. is so afraid of an app that young people like; it is too underconfident.” However, the Chinese government remained quiet on the Russian WeChat ban, and the Chinese mainstream media has been compltely silent. WeChat is the most popular mobile instant messaging app in China. It has been the world’s largest standalone mobile app since 2018 with over 1 billion monthly active users. The Russian WeChat ban was based on the amendments to the “Information, Information Technology and Information Protection Act” passed in 2022, and the amendments went into effect on March 1, 2023. The ban also applies to businesses and financial organizations with state involvement. The WeChat blockage by the Kremlin also made many Chinese people feel (it was) sudden and (they were) puzzled, due to China’s friendly position on the Russia-Ukraine war.

Source: LTN, March 5, 2023
https://news.ltn.com.tw/news/world/breakingnews/4230008

EU Parliament, Japan and Canada Banned Government Use of TikTok

Popular Hong Kong online media HK01 Network recently reported that, following the European Commission and the Council of the European Union, the European Parliament is expected to announce a ban on government use of TikTok. In addition to prohibiting Parliament employees from installing TikTok on their work smartphones, private devices having access to the Parliament’s emails and the Parliament’s networks are also included. The Parliament is worried about TikTok’s parent company, ByteDance, and that the Chinese government may use the app to collect personal data and other information. In Denmark, one of the EU member states, its parliament also strongly recommended that parliamentarians and employees delete TikTok.

According to major Taiwanese news network Liberty Times Network (LTN), almost at the same time, Japanese government spokesman and Chief Cabinet Secretary Hiroichi Matsuno stated at a press conference that, for network security reasons, government employees are prohibited from using TikTok and other social media services that require connection to external networks on mobile phones and other terminal devices that may be involved in processing confidential information. Also in the meantime, the Canadian government announced that the use of TikTok on government devices and equipment is prohibited, citing information security risks. Canadian Prime Minister Justin Trudeau said this could be the first step. With the government banning TikTok, many Canadians and businesses will reflect on their online security and may choose to do so too.

Sources:
(1) HK01, March 1, 2023
https://bit.ly/3kLq05A
(2) LTN, February 28, 2023
https://news.ltn.com.tw/news/world/paper/1569473
https://news.ltn.com.tw/news/world/breakingnews/4224212

China Times: Foxconn Plans $700 Million New Investment in India

Major Taiwanese newspaper China Times recently reported that top Apple supplier Foxconn, after setting up a foundry in India, developed recent plans to invest an additional US$700 million to build a new factory in India. The new production line is expected to be used to take over the iPhone production capacity transferred from Mainland China. Indian officials said that Apple wants to shift 25 percent of its iPhone production capacity to India due to concerns over the Chinese supply chain risks. The factory covers an area of about 1.2 square kilometers. In addition to the production of iPhones, the factory may also be used for electric vehicle parts. The new factory is expected to employ 100,000 workers. This investment is one of Foxconn’s largest single investments in India so far. In the future, China may face the risk of losing its status as the world’s largest producer of consumer electronics . Foxconn’s Zhengzhou (China) factory output dropped sharply due to the Chinese government Zero Covid lockdown at the end of last year, making Apple re-examine its supply chain in China. Foxconn’s investment in India may be a move to stay in line with Apple’s policies. Some reports indicated that the Apple iPhone 14 series 2022 production slipped by nearly 6 million units.

Source: China Times, March 3, 2023
https://www.chinatimes.com/cn/realtimenews/20230303005016-260409?chdtv

The U.S. Added More Chinese Tech Companies to the Entity List

Well-known Chinese news site Sina (NASDQ: SINA) recently reported that the U.S. Department of Commerce has included an additional 28 Chinese companies and research institutions in the so-called Entity List on the grounds of national security and foreign policy interests. The Chinese companies added this time include Inspur Group (a Server hardware supplier), Loongson Technology (a leader in the CPU design field), 4Paradigm Technology (an artificial intelligence provider), BGI Research (genetic research), Suzhou Centec Communications (an Ethernet exchange chip designer), and a number of others. According to the regulations of the U.S. Department of Commerce, companies included in the Entity List must obtain authorization from the U.S. government to obtain U.S. products and technologies. Inspur Group, is a major player in China’s cloud computing, big data, hosting, and the artificial intelligence market. It depends heavily on Intel’s technology for its services. When contacted by reporters for comment, several companies said they were still assessing the situation and impact . A Chinese Foreign Ministry spokesperson commented earlier that the United States has repeatedly generalized the concept of national security, abused export control measures, adopted discriminatory and unfair practices against companies from other countries, and politicized and weaponized economic, trade and technological issues.

Source: Sina, March 3, 2023
https://news.sina.cn/2023-03-03/detail-imyiqnky4786782.d.htmlW

Global Times: European Commission Asked Staff to Uninstall TikTok

Global Times recently reported that, due to so-called data protection considerations, the European Commission has asked the agency’s staff to uninstall TikTok from work devices and personal devices using work applications. The Commission’s staff members were asked to delete TikTok no later than March 15. For those who do not comply by the deadline, work applications will no longer be available on the relevant device. This is the first time the agency has suspended its staff from using an app. A spokesman for the European Commission said it was the result of a “careful analysis,” but declined to disclose the information that led them to conclude that the app posed a significant cybersecurity and data risk to the Commission. The European Parliament also said that it was monitoring and evaluating all possible data breaches related to the app and would consider the European Commission’s assessment before making recommendations. A TikTok spokesperson expressed disappointment in this decision. For some time, the United States has been at the forefront of suppressing TikTok. Politicians in the U.S. frequently use “national security” as an excuse to request restrictions on the use of the app. In December last year, the United States banned the use of TikTok on all federal government devices. Although no EU government has followed the example of the United States, yet some countries, including the Netherlands, are evaluating whether to impose restrictions on the use of TikTok by government staff.

Source: Global Times, February 23, 2023
https://world.huanqiu.com/article/4BpFVNteESh