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.


China's aviation regulator raised concerns with Boeing on 737 MAX design changes

Updated 12 December 2019

China's aviation regulator raised concerns with Boeing on 737 MAX design changes

  • China is reviewing the airworthiness of the plane
  • China was first country to ground plane in March

BEIJING: China’s aviation regulator raised “important concerns” with Boeing Co. on the reliability and security of design changes to the grounded 737 MAX, it said on Thursday, but declined to comment on when the plane might fly again in China.
China is reviewing the airworthiness of the plane based on proposed changes to software and flight control systems according to a bilateral agreement with the United States, Civil Aviation Administration of China (CAAC) spokesman Liu Luxu told reporters at a monthly briefing.
He reiterated that for the plane to resume flights in China, it needed to be re-certified, pilots needed comprehensive and effective training to restore confidence in the model and the causes of two crashes that killed 346 people needed to be investigated with effective measures put in place to prevent another one.
China was the first country to ground the 737 MAX after the second crash in Ethiopia in March and had set up a task force to review design changes to the aircraft that Boeing had submitted.
The US Federal Aviation Administration (FAA) will not allow the 737 MAX to resume flying before the end of 2019, its chief, Steve Dickson, said on Wednesday.
Once the FAA approves the reintroduction into service, the 737 MAX can operate in the United States, but individual regulators could keep the planes grounded in other countries until they complete their own reviews.
“Due to the trade war, the jury is still out on when China would reintroduce the aircraft,” said Rob Morris, Global Head of Consultancy at Ascend by Cirium.
Chinese airlines had 97 737 MAX jets in operation before the global grounding, the most of any country, according to Cirium Fleets Analyzer.