Dec 10, 2018 02:08 PM

Monday Tech Briefing: Huawei, Cisco, DJI

1. Huawei CFO Faces U.S. Fraud Charges, Canadian Court Told

Canadian prosecutors say the U.S. has accused senior Huawei executive Meng Wanzhou of fraud in connection with a Hong Kong-based company’s bid to sell American goods to Iran.

Details of charges against Meng were revealed at a bail hearing Friday at the Supreme Court of British Columbia, which followed her arrest Dec. 1 and precedes an upcoming extradition hearing. No verdict was reached and the bail hearing was adjourned until Monday.

In response to the arrest, China summoned both the U.S. and Canadian ambassadors to China to demand the immediate release of Meng. (Caixin)

2. Japan to Ban Huawei, ZTE From Government Networks: Report

Japan is preparing to ban the use of telecom equipment from Chinese suppliers Huawei and ZTE in government-backed networks, according to local newspaper Yomiuri Shimbun.

Tokyo will make changes next week to its government procurement policy that will effectively block the two companies from government contracts, unnamed sources said.

Japan’s move comes as a growing list of other countries, including Australia, New Zealand and the UK move to restrict Huawei’s operations or ban the company outright. (Caixin)

3. Cisco Denies Telling Employees to Avoid China

U.S. telecomm equipment supplier Cisco denied reports that it had told employees to avoid visiting to China following the arrest in Canada of an executive from China’s Huawei.

Fears of tension between China, the U.S. and Canada escalated after the arrest. China has threatened Canada with “grave consequences” if Huawei CFO Meng Wanzhou is not released, and U.S. executives are reportedly worried about "retaliation measures" upon arrival in China. (Caixin, link in Chinese)

4. TCL Spins Off Assets to Focus On Semiconductor Business

Consumer electronics producer TCL Corporation is selling several units worth 4.76 billion yuan ($732 million) to shift its focus to its semiconductor business, according to an announcement on Friday.

The units to be unloaded mostly consist of low-profit businesses such as consumer electronics and home appliances. The company is also planning to spin off departments not relevant to semiconductors. (Caixin, link in Chinese)

5. DJI Steps Up Fight for Agriculture Drone Market With 3 Million Subsidy

Drone manufacturer DJI is offering a total of 20 million yuan ($3 million) in subsidies to local distributors in order to double its number of farming drone stores. The company is pushing services at the stores in addition to selling drone products.

DJI has marketed drones made specifically for farming since 2015. Its products account for about two thirds of the Chinese market, which in 2018 came up to 30,000 farming drones in total. (Caixin, link in Chinese)

6. Central Bank Tightens Grip On Digital Currencies

A top financial official has for the first time acknowledged China’s ban on security token offerings (STO), an initial coin offering (ICO) backed by tangibles, saying it is "essentially an illegal activity in China."

Pan Gongsheng, a deputy governor of the People's Bank of China, said Saturday that digital currencies are “an accomplice to all kinds of illegal and criminal activities.”

Beijing cracked down on ICOs in September last year, ordering all platforms to halt digital currency issuance immediately. (SCMP)

Compiled by He Shujing

Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.