Huawei moving on 5G while politics plays out

Huawei is leading the commercial deployment of 5G technology, according to a company spokesperson. (AP)
Updated 02 November 2019

Huawei moving on 5G while politics plays out

  • ‘I think targeting specific vendors based on country origins will not make America’s communication network more secure’
  • ‘We continue to sign more contracts globally as well, Huawei is definitely leading commercial deployment of 5G’

SAN FRANCISCO: Major state telecom operators are rolling out 5G wireless advances in China as the country races to close a technology gap with the United States amid a bruising trade war.
The new-generation telecommunication networks move data at blazing speeds, promising economic and technological advantages to countries where they are deployed.
US regulators earlier this week proposed rules to block telecom carriers from buying from Chinese tech companies Huawei and ZTE, and to remove any of their equipment already in place to “safeguard the nation’s communications networks.”
The US Federal Communications Commission said the rules — to be voted on November 19 — were part of an initiative to “safeguard the nation’s communications networks.”
The two Chinese firms have been accused of posing a national security threat because of their close ties to the Beijing government. Both have repeatedly denied the allegations.
AFP sat down with Huawei US vice president of public affairs Joy Tan to ask her three questions:


What is your reaction to the proposal of the US regulators?
Huawei has never had any major cybersecurity-related incident.
I think targeting specific vendors based on country origins will not make America’s communication network more secure.
It will only impact rural operators and the most underserved areas in US.
So, we think this kind of action will further widen the digital divide and slow the pace of economic development, not make the network more secure.
On average we procure $11 billion in goods and services from US suppliers each year. These companies cannot continue to sell components or products to Huawei. I’ve seen their business impacted in the short term and in the long term we’ll see bigger impact for US companies as well.
$11 billion creates about 40,000 to 50,000 US jobs, so we hope these jobs won’t be impacted for the longer term.


How is the deployment of 5G going?
South Korea and the US started launching 5G last year.
Already 3.5 million people are on 5G services.
China is moving very fast in terms of 5G deployment.
We continue to sign more contracts globally as well, Huawei is definitely leading commercial deployment of 5G. 5G has come faster than all expected; we believe we are 12-18 months ahead of competitors.
Our most recent 5G base stations are shipped without any US components; (instead they come) with our own or components from other countries, so we’re not dependent on the US components.


Do you need to work with the US?
We want to work with them.
Huawei’s principle is always to collaborate with the best companies around the world, so that’s why we continue to want to engage with the US companies.
If the US government allows big suppliers to continue to ship components, we’ll continue to buy from them, even if we have our own solutions and alternatives.
Harmony OS has a different purpose compared to Android or iOS.
When we designed it, we had the future in mind. It’s a lightweight, compact operating system, with powerful functionalities. We use that for smart watches and smart screens in vehicles, and smart speakers first.
We definitely want to keep working with American companies including Google.
We continue to watch to see if Google will get a temporary license from the US government to continue to supply us. We hope we’ll see some good news next month or sooner.


OPEC sees small 2020 oil deficit even before latest supply cut

Updated 12 December 2019

OPEC sees small 2020 oil deficit even before latest supply cut

  • OPEC keeps its 2020 economic and oil demand growth forecasts steady and is more upbeat about the outlook

LONDON: OPEC on Wednesday pointed to a small deficit in the oil market next year due to restraint by Saudi Arabia even before the latest supply pact with other producers takes effect, suggesting a tighter market than previously thought.

In a monthly report, OPEC said demand for its crude will average 29.58 million barrels per day (bpd) next year. OPEC pumped less oil in November than the average 2020 requirement, having in previous months supplied more.

The report retreats further from OPEC’s initial projection of a 2020 supply glut as output from rival producers such as US shale has grown more slowly than expected. This will give a tailwind to efforts by OPEC and partners led by Russia to support the market next year.

OPEC kept its 2020 economic and oil demand growth forecasts steady and was more upbeat about the outlook.

“On the positive side, the global trade slowdown has likely bottomed out, and now the negative trend in industrial production seen in 2019 is expected to reverse in 2020,” the report said.

Oil prices were steady after the report’s release, trading near $64 a barrel, below the level some OPEC officials have said
they favor.

The Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, have since Jan. 1 implemented a deal to cut output by 1.2 million bpd to support the market. At meetings last week, OPEC+ agreed to a further cut of 500,000 bpd from Jan. 1 2020.

The report showed OPEC production falling even before the new deal takes effect.

In November, OPEC output fell by 193,000 bpd to 29.55 million bpd, according to figures the group collects from secondary sources, as Saudi Arabia cut supply.

Saudi Arabia told OPEC it made an even bigger cut in supply of over 400,000 bpd last month. The Kingdom had boosted production in October after attacks on its oil facilities in September briefly more than halved output.

The November production rate suggests there would be a 2020 deficit of 30,000 bpd if OPEC kept pumping the same amount and other factors remained equal, less than the 70,000 bpd surplus implied in November’s report and an excess of over 500,000 bpd seen in July. OPEC and its partners have been limiting supply since 2017, helping to revive prices by clearing a glut that built up in 2014 to 2016. But higher prices have also boosted US shale and other rival supplies.

In the report, OPEC said non-OPEC supply will grow by 2.17 million bpd in 2020, unchanged from the previous forecast but 270,000 less than initially thought in July as shale has not grown as quickly as first thought.

“In 2020, non-OPEC supply is expected to see a continued slowdown in growth on the back of decreased investment and lower drilling activities in US tight oil,” OPEC said, using another term for shale.