Huawei: Staring into the Abyss

Huawei is putting on a brave face. The Chinese networking equipment giant, banned from acquiring US technology last month over alleged violations of international sanctions against Iran, last week claimed it had assigned 10,000 engineers to work around the clock to find ways to break its reliance on American code and computer chips. Spoiler: It's not going to work. If the US ban stays in place, today's Huawei won't survive.

Technology: To make its phones and networking gear work, Huawei needs semiconductors. To make those semiconductors, Huawei relies on software tools that are built by only a handful of US and European companies, which have suspended doing business with Huawei to comply with the US ban. Without access to these tools, or the software updates needed to keep them running, Huawei can't make viable products, and its business will collapse. It's as simple as that.

Politics: Huawei could try to seek a settlement. If Huawei were to admit guilt over the violation of Iran sanctions, fire some executives, and submit to US inspections to allay espionage fears, as it's already done in the UK, Washington might be willing to deal. But Huawei is China's most important and innovative tech giant. Kowtowing to the US would be humiliating both for company, the country, and in particular Chinese President Xi Jinping. There is no sign yet that Huawei or China are willing to go down that path.

But what about all those other countries that have signed deals with Huawei? Governments from Brasilia to Moscow to Kuala Lumpur have signaled they are sticking by Huawei despite US pressure. Just last week, Huawei signed a 5G deal with a Russian mobile telecom company. But unless the US ban is lifted, Huawei won't be able to deliver much beyond signatures.

What if Trump changes his mind? He's seeking leverage in his broader trade dispute with China, and as we know, he's turned on a dime before. All it would take is a single tweet and presto, Huawei's saved. But even if Trump decided to suspend the technology ban as part of a potential deal, the firm's reputation as a supplier may already be compromised. Telecom companies that are preparing to shell out billions of dollars to build their 5G networks would have to think hard about signing deals with a company that from now on will be squarely in the US crosshairs.

And so Huawei is probably going down. As that fact becomes clearer over the coming days and weeks, it will send shockwaves through both the $1 trillion global telecoms sector and through geopolitics. Don't say we didn't warn you.

Every day thousands of people legally cross back and forth between El Paso, Texas, and Ciudad Juárez, Mexico, on their way to jobs, schools, doctor's appointments, shopping centers and the homes of family and friends. This harmonious exchange has taken place for more than 400 years, uniting neighbors through shared social ties, geography, history and, most importantly, an interlinked economy.

Beyond the people and goods, El Paso and Ciudad Juárez also converge in a cross-border flow of ideas, ambition and aspirations that have shaped the region for centuries. This forward-looking spirit is what attracted Microsoft to the region in 2017, when it launched Microsoft TechSpark to create new economic opportunities and help digitally transform established industries with modern software and cloud services. It's also why Microsoft announced on Monday that it is expanding the TechSpark El Paso program to include Ciudad Juárez and making a $1.5 million investment in the binational Bridge Accelerator. Read more about the TechSpark announcement here.

Foreign policy played a bigger role in last night's Democratic presidential debate than in previous ones, in part because of events that came on the heels of President Trump's surprise, and disastrous, withdrawal of US troops from northern Syria. Some candidates used the opportunity to play up their foreign policy bona fides, but not all of their punches landed cleanly. Here are some key takeaways.

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Will there be agreement, and will negotiations carry on if there is no agreement in the EU?

Lord William Hague: Well, they won't carry on if there is no agreement at the European Council in the next few days. But in the EU, while you always think of things going to the last minute, in fact they usually go beyond the last minute. And that could happen in this case where there could be political agreement, agreement in principle to a Brexit deal. But they'd have to have another European Council, and more detail hammering out the actual text of it before another summit on the 28th of October, which would mean some extension to Brexit.

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Since Syria's brutal civil war began eight years ago, millions of Syrians have fled their country to escape the bombs and bullets. But hundreds of thousands have been displaced within Syria's borders, where they languish in packed refugee camps. The al-Hol camp in northern Syria is sprawling, and of its nearly 70,000 residents, some 11,000 are family members of foreign ISIS fighters, according to the UN Office of the High Commissioner for Human Rights. The surprise American withdrawal from northern Syria last week paved the way for Turkey and Syria's Bashar al-Assad to move in. Some 160,000 civilians have now fled the border region that Turkey is bombarding, deepening a humanitarian crisis in a stretch of Syria that had been relatively secure since the defeat of ISIS's self-declared caliphate back in March. Here's a look at the camps for displaced people in the area.

Mozambique's democracy test Mozambicans voted yesterday in an election that will test a fragile peace accord between the ruling Frelimo party, led by president Filipe Nyusi, and Renamo, a former rebel group-turned-opposition party. The two factions were on opposite sides of a Cold War-tinged civil war that killed an estimated 1 million people between 1977 and 1992. Frelimo, which has ruled Mozambique since independence, has been losing popularity due to a corruption scandal, but is likely to hold onto power at the national level. Renamo, which foreswore violence just two months ago in exchange for electoral reforms that will help the party, will be hoping to make regional gains that allow it to win some key governorships. Disputes over the final vote count and even outright fraud or violence are possible in coming days, particularly if Renamo fails to make its hoped-for gains.

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