Huawei calls on US to lift export restrictions

American officials have accused Huawei of facilitating Chinese spying, a charge the company denies, and saw it as a growing competitor to US technology industries. (AFP)
Updated 12 July 2019

Huawei calls on US to lift export restrictions

  • American officials accuse Huawei of facilitating Chinese spying, a charge the company denies
  • Huawei reported earlier last year’s sales rose 19.5 percent over 2017 to $105.2 billion

SHENZHEN, China: The chairman of Huawei said Friday the Chinese tech giant has yet to see any benefit from President Donald Trump’s promise to allow US companies to sell some components to the company and called on Washington to remove it from a security blacklist.
The “unjust and unfair” decision to add Huawei Technologies, the biggest maker of network equipment for phone companies, to a list that restricts exports is hurting its US suppliers and global customers, Liang Hua told a news conference.
American officials accuse Huawei of facilitating Chinese spying, a charge the company denies, and see it as a growing competitor to US technology industries. Its founder, Ren Zhengfei, said in June the company has cut sales forecasts by $30 billion over the next two years due to curbs on access to US chips and other components.
Trump promised last month to allow some sales to Huawei but said it will stay on the “entity list” until talks over Washington’s tariff war with Beijing are concluded.
“So far we haven’t seen any tangible change,” Liang said.
“We’re not saying that just because things have relaxed a little, we’re fine with being on the blacklist,” he said. “Actually, we believe our listing on the blacklist should be lifted completely.”
Despite the US export restrictions, Huawei revenue grew in the first half of this year, Liang said. He declined to give details ahead of the release of financial results later this month.
Trump’s export curbs are a blow to US suppliers of chips and other technology for which Huawei is one of the biggest buyers.
Huawei reported earlier last year’s sales rose 19.5 percent over 2017 to $105.2 billion. The company founder, Ren Zhengfei, said ahead of that he expected sales to rise 30 percent this year, but those plans were derailed by Trump’s export curbs.
Liang said Huawei is deciding how to respond to possible loss of access to Google’s Android operating system for its mobile phones under Trump’s curbs. Huawei, the No. 2 global smartphone brand after Samsung, has developed its own operating system, Hongmeng, but has said so far it has no plans to use it on phones.
“The open Android operating system and ecosystem is still our first choice,” said Liang. “Of course, if America doesn’t let us use it, then might we in the future develop our own Hongmeng as our cellphone operating system? We still haven’t decided yet.”
Huawei also is developing its own chips and other technology, which would reduce the amount it spends on US components and help to insulate the company against possible supply disruptions. Huawei announced plans in January for a next-generation smartphone based on its own chips.


Russia vows cooperation with OPEC to keep oil market balanced

Updated 21 November 2019

Russia vows cooperation with OPEC to keep oil market balanced

  • Moscow not aiming to be world’s No.1 crude producer, Putin tells annual investment forum

MOSCOW: President Vladimir Putin said on Wednesday that Russia and the Organization of the Petroleum Exporting Countries (OPEC) have “a common goal” of keeping the oil market balanced and predictable, and Moscow will continue cooperation under the global supply curbs deal.

OPEC meets on Dec. 5 in Vienna, followed by talks with a group of other exporters, including Russia, known as OPEC+.

“Our (common with OPEC) goal is for the market to be balanced, acceptable for producers and consumers and the most important — and I want to underline this — predictable,” Putin told a forum on Wednesday.

In October, Russia cut its oil output to 11.23 million barrels per day (bpd) from 11.25 million bpd in September but it was still higher than a 11.17-11.18 million bpd cap set for Moscow under the existing global deal. Putin told the forum that Russia’s oil production was growing slightly despite the supply curbs deal but Moscow was not aiming to be the world’s No. 1 crude producer. Currently, the US is the world’s top oil producer.

“Russia has a serious impact on the global energy market but the most impact we achieve (is) when working along with other key producers,” he said. “There was a moment not that long ago when Russia was the world’s top oil producer — this is not our goal.”

Russia plans to produce between 556 million and 560 million tons of oil this year (11.17-11.25 million bpd), Energy Minister Alexander Novak said separately on Wednesday, depending on the volume of gas condensate produced during cold months.

Russia will aim to stick to its commitments under the deal in November, Novak told reporters.

Russia includes gas condensate — a side product also known as a “light oil” produced when companies extract natural gas — into its overall oil production statistics, which some other oil producing countries do not do.

As Russia is gradually increasing liquefied natural gas production (LNG), the share of gas condensate it is producing is also growing. Gas condensate now accounts for around 6 percent of Russian oil production.

Novak told reporters that in winter, Russia traditionally produces more gas condensate as it is launching new gas fields in the freezing temperatures.

“We believe that gas condensate should not be taken into account (of overall oil production statistics), as this is an absolutely different area related to gas production and gas supplies,” he said.

Three sources told Reuters on Tuesday that Russia is unlikely to agree to deepen cuts in oil output at a meeting with fellow exporters next month, but could commit to extend existing curbs to support Saudi Arabia.

On Wednesday, Novak declined to say that Russia’s position would be at upcoming OPEC+ meeting. Reuters uses a conversion rate of 7.33 barrels per ton of oil.