Australia is taking a stance similar to the U.S. in banning Chinese equipment maker Huawei from supplying equipment for 5G networks being built there. The U.S. restricted Huawei and ZTE participation in U.S. markets (see 1808130064). The Australian government announced 5G restrictions without mentioning any company. “Involvement of vendors who are likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law" may "risk failure by the carrier to adequately protect a 5G network from unauthorised access or interference,” it said. “As 5G and related technologies continue to develop, new risks relating to the technology may emerge and require further Government consideration.” Huawei confirmed it was targeted. This is “extremely disappointing,” the company tweeted: “Huawei is a world leader in 5G. Has safely & securely delivered wireless technology” in Australia for 15 years.

Comcast is extending until Sept. 12 its deadline for Sky shareholders to weigh in on its bid for takeover, it said Wednesday. The original deadline was Wednesday, and it said that as of then it received acceptances representing 0.21 percent of ordinary shares. The Diffusion Group analyst Rob Silvershein blogged that Comcast is likely to win in the bidding war with Disney but "whoever ends up with Sky will ultimately pay a hefty premium." He said the formal bid from Fox -- which Disney is buying -- earlier this month triggered a waiting period ending Sept. 22 in which either party can raise its price, and if by then there's not a clear winner, the next step is a five-day auction process to determine whose offer will be recommended to shareholders. He said Disney/Fox will likely raise its bid, and Comcast will "aggressively counter" and ultimately win because it needs Sky more than Disney does, and the premium Disney is paying for Fox limits Disney's ability to counter it.

The Office of the U.S. Trade Representative should expand its use of the Generalized System of Preferences to encourage beneficiaries to make policy and enforcement changes, the Information Technology and Innovation Foundation said in a report released Monday. The agency's foreign trade barrier and intellectual property reports should more directly guide decisions "to self-initiate reviews of whether GSP beneficiaries are breaching the program’s trade, market access, or intellectual property criteria," the ITIF said. The USTR is already reviewing GSP benefits for Indonesia, India, Kazakhstan, Thailand and Turkey over various issues. If the GSP reviews don't produce the intended changes, "USTR should partially or fully suspend or withdraw that country’s access to GSP benefits -- as this has clearly dragged on for far too long for many GSP beneficiaries," the ITIF said. The criteria for GSP "graduation," based on income and trade competitiveness, should be more strictly enforced, it said. That should start "with revoking Turkey’s access to the program," the ITIF said.

The U.S. economy will take a $2.4 billion annual hit if the Trump administration imposes 25 percent tariffs on connected devices and printed circuit assembles in a third tranche of duties against Chinese imports, said a CTA study released Friday and by Trade Partnership Worldwide. An earlier study said duties on $50 billion worth of Chinese imports, coupled with Chinese retaliation, would reduce U.S. GDP by nearly $3 billion (see 1805010062). Tariffs of 25 percent on IoT-critical connected devices imported to the U.S. from China would cost the U.S. economy $1.8 billion yearly, said the new study. “This single tariff line captures products needed by data centers to make the internet work, networking equipment that most businesses need to connect to the internet and operate office networks, as well as products that consumers need to access the web and enjoy its content.” Without tariffs, CTA forecasts smart speakers will grow to a $3.8 business in terms of 2019 factory sales, with unit shipments of 44.4 million. The association estimates 25 percent tariffs will reduce shipments by 5.3 million units. Bluetooth earbuds, which CTA forecasts will be a $1.4 billion business in 2019 on 14.2 million in factory unit shipments, would take a $588 million revenue hit. Unit shipments would be cut 1.7 million. The Coalition for a Prosperous America stands behind the administration’s plan to “consider” raising the third tranche of duties to 25 percent from 10 percent, and backs software levies, commented the conservative think tank Thursday in docket USTR-2018-0026. Well more than 1,200 comments were posted in the docket Friday, the vast majority opposed to tariffs. BSA|The Software Alliance didn’t comment. Wilson Electronics was burned in the first two tranches of tariffs on RF components and semiconductors it imports to make cellphone signal boosters in Utah, it commented Friday. Now, Wilson supports imposing 25 percent tariffs in the third tranche on finished boosters imported from China under the same heading as connected devices because Chinese competitors use “extremely aggressive pricing tactics to undercut Wilson’s sales." Tariffs on Audio-Technica's Bluetooth headphones and wireless mic systems would "have a significant negative impact on our business," commented its Vice President-Operations Richard Sprungle.

Tech startups are among the many hundreds of innovators from various industries opposing a third proposed tranche of 25 percent levies on Chinese imports (see 1808150018), comments in docket USTR-2016-0026 show. Cao Gadgets develops wireless sensor tags for a variety of IoT uses and markets the tags through its own online store, commented owner Mike Cao. It develops the “software/firmware portion of our products” entirely in the U.S., and buys integrated circuits and other electronic components from American producers like Intel, Microchip and ON Semiconductor, he said. His company then exports its goods to printed circuit board assembly (PCBA) contractors in China, he said: PCBA is a “labor intensive process,” with virtually no low-cost, high-volume U.S. PCBA contractors. Jie Qi and Andrew Huang started Chibitronics, making educational electronics for schools and libraries, they commented Wednesday. Additional “tariffs on electronic parts will deprive American children of access to technology education,” they said.

Cree estimates the first tranche of 25 percent tariffs on Chinese imports that took effect July 6 will reduce earnings by about 2 cents a share in Q1 ending late September and by about 3 cents a share each future quarter, said outgoing (see personals section of the July 24 issue) Chief Financial Officer Mike McDevitt on a Tuesday earnings call. Cree argued unsuccessfully in the first round to defeat tariffs on LEDs it reimports from China and took an additional hit when the second tranche of tariffs to take effect Aug. 23 included other duties. Quarterly guidance doesn’t include “any potential impact of any tariffs” that take effect Aug. 23 or later, said McDevitt. Cree is “evaluating ways” to further reduce the damage, he said. It expects a 6 percent Q1 revenue decline sequentially. Tech interests continue opposing the levies (see 1808140047). The stock closed down 7.8 percent Wednesday at $46.26.

Micro Electronics and GlobiTech were among the tech interests joining many hundreds of companies asking to testify during four days of hearings beginning Aug. 20 against the proposed third tranche of tariffs on an estimated $200 billion worth of Chinese imports. Requests were due Monday in docket USTR-2018-0026 under the deadline U.S. Trade Representative Robert Lighthizer extended when he announced Aug. 1 he'll “consider,” at President Donald Trump’s direction, raising the third tranche of proposed duties to 25 percent from 10 percent (see 1808010073). Lighthizer in an Aug. 7 notice said he reserves the option to “extend the length of the hearing depending on the number of additional interested persons who request to appear.” Micro Electronics CEO Richard Mershad wants to testify for removing six Harmonized Tariff Schedule line items, said comments posted Tuesday. Computers and parts it identified aren't available in big quantities outside China, said the parent of an electronics retailer. GlobiTech wants to testify against tariffs on the raw materials it imports from China under HTS 3818.00.00 to manufacture silicon epitaxial wafers, said the company. Those wafers are a $3 billion “subset” serving the global semiconductor industry, it said. “As the world's largest supplier of silicon epitaxial products, chances are that smartphone that you are holding has ‘some GlobiTech in it.’"

Viewers in Europe’s five largest markets -- France, Germany, Italy, Spain and the U.K. -- watched on average two more hours a month of on-demand content in 2017 than the previous year, said IHS Markit Monday. Linear TV viewing time declined, as did time-shifted viewing on personal video recorders. “With the increasing volume of consumption moving away from traditional linear broadcast, monetization of on-demand and time-shifted viewing remains a key concern, as ad-insertion and tracking technology has been slow to keep up,” said IHS. The increasing shift to over-the-top consumption “signals the need for pay TV operators to act quickly,” it said. “Leading operators are already enhancing their current propositions and embracing OTT, to ensure they capture some of the time spent on other devices and services.”

Control4 can financially handle the Trump administration's planned tariffs on Chinese goods that concern some tech companies (see 1808030034), executives said Thursday. Friday, the stock closed up 20.6 percent to$31.67after reporting record revenue and net income in Q2. Chief Financial Officer Mark Novakovich said the company will absorb and offset the impact of planned tariffs and doesn’t plan to change product pricing this year, partly due to lower tax rates. “We will continue to ... explore all options available to reduce the impact.” The home automation company is exploring many sourcing options or scenarios, Novakovich said. He said it's too early to make a decision because of costs associated with changes, and too soon to make long-term commitments "until we know more about the duration of some of these tariffs and the specific product classes that they are going to definitively impact." CEO Martin Plaehn confirmed his company is working with Apple for control of Apple TV over IP for a product resulting from the bigger company releasing application program interfaces to enable third-party companies to control media streamers.

China urges the U.S. “to adopt a correct attitude" on trade relations between the two countries and not try to "blackmail China because it will not work,” said Foreign Ministry spokesman Geng Shuang at a Beijing news conference Thursday, reacting to the Trump administration’s announcement it will “consider” hiking the latest round of proposed Trade Act Section 301 tariffs on Chinese imports to 25 percent from 10 percent (see 1808010069). China also urges the U.S. “to return to rationality and refrain from acting impulsively, otherwise they will end up hurting themselves,” he said.