As trade disputes simmer, Chinese telecommunications giant Huawei, the No. 3 smartphone brand, is shifting its growth efforts toward Europe and Asia in the face of mounting obstacles in the U.S. market.
In this May 26, 2016, photo, a man walks past a Huawei logo during a launch event for the Huawei Matebook in Beijing. (AP Photo/Mark Schiefelbein)
Shenzhen-based Huawei, the world's largest maker of telecoms equipment, has long coveted access to the U.S. but recently laid off key American employees at its Washington D.C. office.
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As trade disputes simmer, Chinese telecommunications giant Huawei, the No. 3 smartphone brand, is shifting its growth efforts toward Europe and Asia in the face of mounting obstacles in the U.S. market.
Shenzhen-based Huawei, the world's largest maker of telecoms equipment, has long coveted access to the U.S. but recently laid off key American employees at its Washington D.C. office.
Huawei's struggles in the United States are in contrast to its booming business in developing countries and growing presence in Europe, where it has been working on next-generation, or "5G," wireless standards. The company's profits rose 28.1 percent in 2017, boosted by strong enterprise and consumer sales and booming business overseas.
Kelly said fears that Huawei's network equipment could be used to collect sensitive information reflected "baseless suspicion." Experts say the concerns could be valid, but suspect they're mainly a pretext for limiting competition and allowing U.S. suppliers to charge higher prices.
"That sense that China is cultivating national champions, and cultivating companies within its own borders at the expense of other companies, has a lot of U.S. companies concerned about how much their intellectual property rights will be safeguarded there," Wolff said.
Last month, Huawei's president of consumer handsets Kevin Ho said the company is pivoting to Europe and developing Asian markets. He called them priorities "No. 1" and "No. 2."
The U.S. has regularly stymied Huawei's efforts to enter the America, citing national security concerns. Huawei has failed to find a U.S. carrier to partner with for its smartphones, and the Federal Communications Commission on Tuesday approved a draft order that could damage Huawei's existing business in network gear. The order cited Huawei and its Chinese rival ZTE by name.
That came after Huawei canceled a planned January announcement that a major U.S. carrier would sell its smartphones for the first time. The company gave no details but news reports said that partner was AT&T Inc. and scrapped the deal under government pressure.
In this March 13, 2018, photo, Jim Xu, vice president of Sales and Marketing at Huawei, pauses while speaking to reporters at Huawei's headquarters in Shenzhen in southern China's Guangdong Province. (AP Photo/Dake Kang)
Huawei's struggles in the United States are in contrast to its booming business in developing countries and growing presence in Europe, where it has been working on next-generation, or "5G," wireless standards. The company's profits rose 28.1 percent in 2017, boosted by strong enterprise and consumer sales and booming business overseas.
The recent setbacks have left Huawei's future in the U.S. uncertain. Huawei recently let go of several American employees in their Washington D.C. office, including William Plummer, who spearheaded efforts to convince the U.S. to allow Huawei in for nearly a decade. Though Huawei declined to comment on the layoffs, the news was first reported by the New York Times and independently confirmed by the Associated Press.
"There is no change to our business strategy in the US," said Huawei spokesman Joe Kelly. "Any changes to staffing size or structure are simply a reflection of standard business optimization."
In this May 26, 2016, photo, attendees walk past an electronic display during a launch event for the Huawei Matebook in Beijing. (AP Photo/Mark Schiefelbein)
Kelly said fears that Huawei's network equipment could be used to collect sensitive information reflected "baseless suspicion." Experts say the concerns could be valid, but suspect they're mainly a pretext for limiting competition and allowing U.S. suppliers to charge higher prices.
"What we've seen so far suggests that there's not a lot of concrete evidence that Huawei poses a national security threat," said Josephine Wolff, Professor of Cybersecurity Policy at the Rochester Institute of Technology. "It leads a lot of people to believe that this is more about trying to protect the U.S. tech sector."
American companies have long chafed under Chinese regulations that require them to operate through local partners and share technology with potential competitors in exchange for market access.
Foreign companies are increasingly alarmed by initiatives such as Beijing's long-range industry development plan, dubbed "Made in China 2025." It calls for creating global leaders in electric cars, robots, and other fields.
In this May 26, 2016, photo, attendees stand near a pillar with the Huawei logo during a launch event for the Huawei Matebook in Beijing. (AP Photo/Mark Schiefelbein)
"That sense that China is cultivating national champions, and cultivating companies within its own borders at the expense of other companies, has a lot of U.S. companies concerned about how much their intellectual property rights will be safeguarded there," Wolff said.
Huawei and ZTE's burgeoning 5G research is seen as a particular threat, as its expanded transmitting capabilities are seen as crucial for a host of emerging technologies based on artificial intelligence - including self-driving vehicles, robots and other machines that transmit vast amounts of data in real time.
ZTE faces devastating threats to its business after the U.S. Commerce Department blocked the company from importing American components for seven years, accusing the smartphone maker of misleading U.S. regulators after it settled charges of violating sanctions against North Korea and Iran.
But unlike ZTE, efforts to impede Huawei in the U.S. likely won't stop its rapid expansion elsewhere.
In this March 13, 2018, photo, the logo of Huawei is displayed at its headquarters in Shenzhen in southern China's Guangdong Province. (AP Photo/Dake Kang)
Last month, Huawei's president of consumer handsets Kevin Ho said the company is pivoting to Europe and developing Asian markets. He called them priorities "No. 1" and "No. 2."
Huawei chose to unveil its latest flagship phone last month at the Grand Palais in Paris, while in Finland, the company employs more than 300 engineers developing cameras, audio algorithms, and 5G technology. Many used to work at Finnish rival Nokia.
Apart from expanding its clout on UN bodies that coordinate cellular technology standards, early on Huawei joined forces with European companies to develop 5G standards. In February, it completed the world's first 5G test call in partnership with London-based Vodafone.
Still, while Chinese trade relations with Europe remain calm, Washington has been warning officials in Canada and Australia about Huawei, raising questions about the company's long-term global prospects.
In this March 13, 2018, photo, a Huawei employee looks up as he walks toward the company's headquarters in Shenzhen in southern China's Guangdong Province. (AP Photo/Dake Kang)
"Huawei is perceived differently in Europe but that's definitely a risk for the company," said Thomas Husson, principal analyst at technology research firm Forrester. "Let's not forget Europeans can still try to push in favor of European-based solutions from Nokia or Ericsson."
VENICE, Italy (AP) — Under the gaze of the world’s media, the fragile lagoon city of Venice launched a pilot program Thursday to charge day-trippers a 5-euro (around $5.35) entry fee that authorities hope will discourage visitors from arriving on peak days and make the city more livable for its dwindling residents.
Visitors arriving at Venice's main train station were greeted with large signs listing the 29 dates through July of the plan's test phase, as well as new entrances separating tourists from residents, students and workers.
Stewards were on hand to politely guide anyone unaware of the new requirements through the process of downloading the QR code to pay the fee.
“We need to find a new balance between the tourists and residents,’’ said the city’s top tourism official, Simone Venturini. “We need to safeguard the spaces of the residents, of course, and we need to discourage the arrival of day-trippers on some particular days.”
Arianna Cecilia, who lives in Rome and was visiting Venice for the first time with her boyfriend, said it felt “strange" to have to buy a ticket to enter a city in her native Italy, and then pass through a tourist entrance.
The couple were staying in nearby Treviso, and had paid the fee and downloaded the QR code as required prior to arrival.
Workers in yellow vests carried out random checks at the train station, and anyone caught faces fines of 50 euros to 300 euros — though officials said “common sense” was being applied for the launch.
The requirement applies only for people arriving between 8:30 a.m. and 4 p.m. Outside of those hours, access is free and unchecked.
Venice has long suffered under the pressure of over-tourism, and officials hope the pilot project can help provide more exact figures to better manage the phenomenon.
The city can track the number of hotel visitors — which last year numbered 4.6 million, down 16% from pre-pandemic highs. But the number of day visitors, which make up the majority of the crowds in Venice, could only be estimated until recently.
A Smart Control Room set up during the pandemic has been tracking arrivals from cell phone data, roughly confirming pre-pandemic estimates of 25 million to 30 million arrivals a year, said Michele Zuin, the city’s top economic official. That includes both day-trippers and overnight guests.
But Zuin said the data is incomplete. “It’s clear we will get more reliable data from the contribution” being paid by day-trippers, he said.
Venturini said the city is strained when the number of day-trippers reaches 30,000 to 40,000. Its narrow alleyways are clogged with people and water taxis packed, making it difficult for residents to go about their business.
Not all residents, however, are persuaded of the efficacy of the new system in dissuading mass tourism. Some say more attention needs to be paid to boosting the resident population and services they need.
Venice last year passed a telling milestone when the number of tourist beds exceeded for the first time the number of official residents, which is now below 50,000 in the historic center with its picturesque canals.
“Putting a ticket to enter a city will not decrease not even by one single unit the number of visitors that are coming,’’ said Tommaso Cacciari, an activist who organized a protest Thursday against the measure.
“You pay a ticket to take the metro, to go to a museum, an amusement park; you don’t pay a ticket to enter a city. This is the last symbolic step of a project of an idea of this municipal administration to kick residents out of Venice,” he said.
Venturini said about 6,000 people had already paid to download the QR code, and officials expect paid day-tripper arrivals Thursday to reach some 10,000.
More than 70,000 others have downloaded a QR code denoting an exemption, including to work in Venice or as a resident of the Veneto region. People staying in hotels in Venice, including in mainland districts like Marghera or Mestre, should get a QR code attesting to their stay, which includes a hotel tax.
The tourist official says interest in Venice's pilot program has been keen from other places suffering from mass tourism, including other Italian art cities and cities abroad such as Barcelona and Amsterdam.
Marina Rodino, who has lived in Venice for 30 years, is opposed to the new plan. She was passing out mock EU passports for “Venice, Open City,” underlining the irony of the new system, and challenging its legal standing with citations from the Italian constitution guaranteeing its citizens the right to “move or reside freely in any part of the national territory."
Rodino has seen her local butcher close and families leave her neighborhood near the famed Rialto Bridge as short-term apartment rentals spring up. But she said the new entrance fee requirement will still allow young people to flood the city in the evening for often rowdy gatherings.
“This is not a natural oasis. This is not a museum. It is not Pompeii," she said. “It is a city, where we need to fight so the houses are inhabited by families, and stores reopen. That is what would counter this wild tourism.”
Tourists arrive in Venice, Italy, Thursday, April 25, 2024. The fragile lagoon city of Venice begins a pilot program Thursday to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. The daytripper tax is being tested on 29 days through July, mostly weekends and holidays starting with Italy's Liberation Day holiday Thursday. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment, while another 70,000 will receive exceptions, for example, because they work in Venice or live in the Veneto region. (AP Photo/Luca Bruno)
Stewards check tourists QR code access outside the main train station in Venice, Italy, Thursday, April 25, 2024. The fragile lagoon city of Venice begins a pilot program Thursday to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. The daytripper tax is being tested on 29 days through July, mostly weekends and holidays starting with Italy's Liberation Day holiday Thursday. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment, while another 70,000 will receive exceptions, for example, because they work in Venice or live in the Veneto region. (AP Photo/Luca Bruno)
Stewards check a tourist QR code access outside the main train station in Venice, Italy, Thursday, April 25, 2024. The fragile lagoon city of Venice begins a pilot program Thursday to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. The daytripper tax is being tested on 29 days through July, mostly weekends and holidays starting with Italy's Liberation Day holiday Thursday. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment, while another 70,000 will receive exceptions, for example, because they work in Venice or live in the Veneto region. (AP Photo/Luca Bruno)
A steward shows the QR code access outside the main train station in Venice, Italy, Thursday, April 25, 2024. The fragile lagoon city of Venice begins a pilot program Thursday to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. The daytripper tax is being tested on 29 days through July, mostly weekends and holidays starting with Italy's Liberation Day holiday Thursday. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment, while another 70,000 will receive exceptions, for example, because they work in Venice or live in the Veneto region. (AP Photo/Luca Bruno)
A steward checks a tourist QR code access outside the main train station in Venice, Italy, Thursday, April 25, 2024. The fragile lagoon city of Venice begins a pilot program Thursday to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. The daytripper tax is being tested on 29 days through July, mostly weekends and holidays starting with Italy's Liberation Day holiday Thursday. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment, while another 70,000 will receive exceptions, for example, because they work in Venice or live in the Veneto region. (AP Photo/Luca Bruno)
Stewards check tourists QR code access outside the main train station in Venice, Italy, Thursday, April 25, 2024. The fragile lagoon city of Venice begins a pilot program Thursday to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. The daytripper tax is being tested on 29 days through July, mostly weekends and holidays starting with Italy's Liberation Day holiday Thursday. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment, while another 70,000 will receive exceptions, for example, because they work in Venice or live in the Veneto region. (AP Photo/Luca Bruno)
Tourists take pictures at the St. Mark square in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourists ride on a ferry boat in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
People stand in front of an information board explaining how to pay the tourist tax in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Marco Bettini, director of Venis Informatics System, gestures as he talks to reporters at the police Venice control room, in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Venice councillor Simone Venturini speaks with reporters in front of a tourist tax totem in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Workers prepare banner explaining how to pay the tourist tax in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Marco Bettini, director of Venis Informatics System, gestures as he explains the Venice density to reporters at the police Venice control room in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourists arrive at the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Workers prepare the tourist tax cashier desks outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Porters wait for tourists outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Workers prepare the tourist tax cashier desks outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Workers prepare the tourist tax cashier desks outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Porters wait for tourists outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourists arrive outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourist information boards are seen outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourists arrive outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
