Huawei unit cuts more than 600 jobs following US sanctions

Huawei remains barred from developing 5G networks in the US, and the Trump administration is trying to convince its allies to do the same. (File/AFP)
Updated 23 July 2019

Huawei unit cuts more than 600 jobs following US sanctions

  • The layoffs will come at the Chinese company’s US-based research and development arm, Futurewei Technologies, in Texas
  • Futurewei employs more than 750 people

SHANGHAI: Chinese telecom giant Huawei said on Tuesday that more than 600 jobs would be lost at a US unit as a result of “curtailment of business operations” caused by Washington’s sanctions on the firm and 68 of its subsidiaries.
The layoffs will come at the Chinese company’s US-based research and development arm, Futurewei Technologies, which is incorporated in Texas, an email statement from Huawei said.
Futurewei employs more than 750 people, according to Bloomberg’s corporate information database.
“Decisions like this are never easy to make. Eligible employees will be offered severance packages, including both pay and benefits,” the statement said.
The Trump administration has put Huawei on its so-called Entity List, which means US companies need a license to supply it with US technology.
Huawei — a leader in next-generation 5G wireless technology — remains barred from developing 5G networks in the United States, and the Trump administration is trying to convince its allies to do the same.
Washington accuses Huawei of working directly with the Chinese government, a claim the company denies.
After Donald Trump met China’s Xi Jinping on the sidelines of the G20 summit in Osaka last month, the US president said he would ease the punitive measures on Huawei as long as equipment sold to it did not pose any risk to national security.
The Washington Post reported this week that Huawei secretly helped North Korea build and maintain the country’s commercial wireless network.
The Post, citing internal documents it obtained and people familiar with the arrangement, said Huawei has partnered with a Chinese state-owned firm Panda International Information Technology on projects in North Korea over at least eight years.
By doing so Huawei, which has used US technology in its components, may have violated US controls on exports to the isolated regime in Pyongyang.


White House says Trump regrets not raising tariffs higher

US President Donald Trump arrives at the G7 summit in Biarritz, France, on Sunday. Trump had been trying to use the conference to rally global leaders to do more to stimulate their economies, as fears rise of a potential slowdown in the US ahead of his reelection. (AP)
Updated 26 August 2019

White House says Trump regrets not raising tariffs higher

  • President’s comments appear at first to mark a rare moment of self-reflection by the US leader

TOKYO: President Donald Trump said Sunday that he had second thoughts about escalating the trade war with China, but the White House later reversed that message saying the president was misinterpreted and that his only regret in hiking tariffs is that he didn’t raise them higher. Trump faced a tense reception from world leaders meeting amid mounting anxiety of a global economic slowdown at the Group of Seven summit in France. During a breakfast meeting with British Prime Minister Boris Johnson, Trump suggested he had qualms about the spiraling conflict. “Yeah. For sure,” Trump told reporters when asked if he has second thoughts about escalating the dispute, adding he has “second thoughts about everything.”
But hours later, White House press secretary Stephanie Grisham issued a statement saying Trump’s comments about US tariffs on China were “greatly misinterpreted.”
She said Trump only responded “in the affirmative — because he regrets not raising the tariffs higher.” The comments appeared at first to mark a rare moment of self-reflection by the famously hard-nosed leader. But the later reversal fit a pattern for Trump in recoiling from statements he believes suggest weakness.

HIGHLIGHTS

• President Donald Trump faced a tense reception from world leaders meeting amid mounting anxiety of a global economic slowdown at the Group of Seven summit in France.

• White House said comments about US tariffs on China were ‘greatly misinterpreted.’

Trump had been trying to use the conference to rally global leaders to do more to stimulate their economies, as fears rise of a potential slowdown in the US ahead of his reelection. Trump’s counterparts, including Johnson, are trying to convince him to back off his trade wars with China and other countries, which they see as contributing to the economic weakening.

US-Japan agreement
Trump and Japan’s Prime Minister Shinzo Abe announced on Sunday a deal in principle on a major bilateral trade deal.
“It’s a very big transaction,” Trump said after talks with Abe on the sidelines of the G7 summit.
“Billions and billions of dollars,” he said. “It involves agriculture, it involves e-commerce. It involves many things. We’ve agreed in principle.”

Amazon fires
Also on Sunday, French President Emmanuel Macron said that world leaders at the G7 summit have agreed to help the countries affected by the huge wildfires ravaging the Amazon rainforest as soon as possible.
“We are all agreed on helping those countries which have been hit by the fires as fast as possible,” he told journalists.