Huawei splits off US research arm

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Huawei splits off US research arm
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The U.S.-based research arm of China's Huawei Technologies - Futurewei Technologies - has moved to separate its operations from its corporate parent since the U.S. government in May put Huawei on a trade blacklist, according to two people familiar with the matter.

Futurewei has banned Huawei employees from its offices, moved Futurewei employees to a new IT system and forbidden them from using the Huawei name or logo in communications, a Futurewei employee told Reuters on condition of anonymity.

The division of operations, which has not been previously reported, comes as many U.S. universities have halted research partnerships with Huawei in reaction to U.S. government allegations that the company poses a national security threat. Many universities are also rethinking their partnerships with other Chinese firms.

Both companies have conducted a wide range of research partnerships and grant programs with U.S. universities. The University of California-Berkeley, for instance, is allowing researchers to keep working with Futurewei after suspending all funding and information exchanges with Huawei in May, according to guidance to faculty from Berkeley research chief Randy Katz.

There's nothing illegal about colleges taking grant money or conducting research with such companies, said Erick Robinson, head of the China practice at law firm Dunlap, Bennett & Ludwig. What's prohibited, he said, is any transfer of "essential confidential technology" to Huawei by any person or organization.The U.S.

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