US government claims Huawei and ZTE pose a risk to national security: the accusations, responses, and fallout
The US government has released a report in which it claims that Huawei and ZTE pose a national security risk and that American companies should not conduct business with the Chinese telecommunication giants. Huawei, ZTE, and the Chinese government have all flatly refused these claims, calling the reports unfounded and subjective. We'll be tracking the fallout from this investigation and any more details from the US government's claims right here.
Huawei CEO breaks 25 years of silence to deny US espionage allegations
Huawei founder and CEO Ren Zhengfei has vehemently denied allegations that his company poses a risk to US intelligence and national security, refuting claims that the smartphone maker has illicit ties to the Chinese government. As Reuters reports, the 68-year-old executive and founder discussed the issue with reporters in New Zealand Thursday, marking the first time in 25 years that he has spoken to the media.
A 2012 report from the US House Intelligence Committee identified both Huawei...
Huawei backs out of US network equipment market, citing 'geopolitical reasons'
Following last October's Congressional report stating that Huawei’s networking equipment poses a national security risk, the business group in charge is announcing plans to back out of the US market, reports IDG. On Tuesday, Carrier Network Business Group CTO Li Sanqi announced that "apparently, due to whatever the geopolitical reasons, we are not focusing on the US market." Huawei’s critics in government and elsewhere have voiced concerns that the equipment could enable some in its home...
US and China form working groups to collaborate on cybersecurity, climate change
The United States and China will form working groups that focus in on two of today's most pressing issues: cybersecurity and climate change. That's according to US Secretary of State John Kerry, who outlined the plans during a visit to Beijing. The collaboration on cybersecurity is particularly notable; both countries have traded barbs and accusations of cyber espionage in recent months. It's unclear what (if anything) will come as a result of the joint effort, but the working group's...
Silicon Valley voices opposition to China cyber-espionage provision
Last month, Congress signed into law an appropriations bill that requires four federal agencies to conduct an FBI-assisted security assessment when purchasing computers and other IT gear manufactured in China. Predictably, China came out in strong opposition to the provision — meant to shield the Justice Department, Department of Commerce, NASA, and the NSF against cyber espionage — and now Silicon Valley is taking issue with the restrictions. A number of industry trade associations have...
Huawei not expecting growth in US this year as security concerns effectively freeze sales
Huawei isn't expecting to see any significant business growth in the United States this year, with the telecom supplier attributing its stagnant performance to national security concerns raised by the US government. Speaking to The Wall Street Journal, wireless network marketing VP Bob Cai made it clear that Huawei has no illusions about its current predicament, which has left the company effectively shut out of sales to government agencies and American businesses. In October of last year, a...
China voices strong opposition to US cyber-espionage law
China has come out in strong opposition to a new US law that restricts government purchases of Chinese technology, saying the measure threatens to harm economic relations between the two countries. The provision, passed Thursday as part of a larger US spending bill, requires NASA, the Department of Justice, and the Commerce Department to consult with federal law enforcement before procuring Chinese IT systems. The law purportedly aims to mitigate the risk of cyber-espionage, but as Reuters...
Sprint and SoftBank promise not to use Chinese networking equipment, says lawmaker
As Sprint's proposed buyout by Japanese carrier SoftBank rumbles forward, it looks like the usual regulatory suspects like the DOJ and FCC aren't the only agencies with concerns. The US Congress is also getting involved, yesterday letting it be known through the WSJ's sources that it had serious concerns that the new Sprint would use equipment manufactured in China by Huawei or ZTE to build out its network. Fears that the security of such equipment could be suspect have been commonplace and...
US wants Sprint-SoftBank deal to avoid Chinese network equipment: WSJ
In order for the $20 billion acquisition of Sprint Nextel by Japan’s SoftBank to go ahead, the US government wants to oversee network equipment purchases in a bid to keep Huawei and ZTE products out of the nation’s infrastructure, reports The Wall Street Journal. Last year, a Congressional report labeled the two companies’ equipment as a national security risk, and SoftBank uses Huawei equipment, popular in many markets for its low prices, on its own network at home.
US Congress restricts government purchase of Chinese computer equipment, citing cyber-espionage concerns
The latest US appropriations bill, signed into law just this week, includes a provision that is likely to further raise tensions between the country and China. The provision requires the Department of Justice, Department of Commerce, NASA, and the NSF to perform a formal assessment of risk of cyber-espionage before purchasing computer systems and other IT equipment. There is a clause in the bill that states that the assessment must specifically analyze — with the assistance of the FBI —...
Huawei says profits increased by 33 percent in 2012, despite US security concerns
Huawei today announced details about its 2012 financial performance, amid lingering security concerns over the company's alleged ties to the Chinese government. At a press conference held Monday, Chief Financial Officer Cathy Meng said Huawei's net profits rose by 33 percent last year, reaching 15.4 billion yuan ($2.5 billion). This marks a notable turnaround from 2011, when the phone manufacturer saw profits of 11.6 billion yuan ($1.9 billion).
Huawei, which played a prominent role at this...
'Steve Jobs is gone. Now there is a lack of innovation' says Huawei's consumer CEO
"The best smartphone is from Huawei. Not from our competitors."
Bold words from a bold guy. Huawei's head of consumer electronics Richard Yu didn't leave much room for doubt over his intentions when announcing the Ascend Mate and Ascend D2 smartphones today — the company truly believes its new products can compete with the likes of Apple and Samsung on quality while offering lower prices. But US carriers have so far been reluctant to accept the prospect of high-end smartphones from Huawei;...
EU considering investigation into Huawei and ZTE's controversial trade practices
The European Union's trade commissioner has said that a decision will soon be made on whether to investigate Chinese telecoms firms ZTE and Huawei for violations of international law. Karel De Gucht told the Wall Street Journal that the European Commission is in the process of collecting information on the two companies while discussing the matter with authorities in China. A Commission report seen by the Journal says that ZTE and Huawei are "clearly dumping" their products into the European...
Clearwire to use Huawei equipment for LTE upgrade after government review, says Reuters
The United States government has green-lit Clearwire's proposed plans to utilize Huawei equipment as part of its LTE upgrade next year, according to Reuters. The wireless provider stated that they worked with "the technical arms of multiple federal agencies" to review the deal, a crucial step after a US House Intelligence Committee report accused Huawei of being a threat to national security. Sources recently told Reuters that no evidence of spying by Huawei was found after an investigation...
White House-ordered Huawei probe reveals no evidence of spying, says Reuters (update)
A White House-ordered probe has revealed no evidence that telecommunications company Huawei spied for the Chinese government, sources tell Reuters. According to two people apparently familiar with the review, there was nothing to indicate active spying, although one source says that "certain parts of government really wanted" such evidence. This contrasts sharply with a US Congressional report released last week, calling both Huawei and ZTE, another major Chinese tech company, a national...
Cisco and other US tech companies lobbied for Huawei investigation, says Washington Post
As Congress slams Chinese companies Huawei and ZTE as posing a national security threat, it appears that its American competitors have been pushing the same line. The Washington Post has obtained a seven-page presentation titled "Huawei’s & National Security," meant to help Cisco representatives persuade clients to reject Huawei on security grounds. According to the Cisco-written document, "Fear of Huawei spreads globally... Despite denials, Huawei has struggled to de-link itself from...
China responds to United States' report against ZTE and Huawei, calls it 'subjective guesswork'
China's Commerce Ministry has responded to a report by the United States Intelligence Committee that accuses Huawei Technologies and ZTE Corp. of being potential threats to national security. The report's concerns were influenced by the companies' possible ties with China's Communist Party and its People's Liberation Army, and how the telecommunication giants can potentially create backdoors in infrastructure equipment sold to Americans that can be used to leak sensitive information.
European Trade Commission temporarily delays price subsidy investigation into Huawei and ZTE
The European Trade Commission has delayed an investigation into Chinese telecommunications giants Huawei and ZTE due to a new investigation into aggressively low solar panel pricing from Chinese distributors, Reuters reports. Huawei and ZTE, which were recently investigated by the US House Permanent Select Committee on Intelligence and deemed potential security risks, were also being investigated by EU Trade Commissioner Karel De Gucht citing concerns over pricing subsidies. However, a formal...
ZTE is 'disappointed' by House Committee allegations, calls for expanded investigation
The US House Permanent Select Committee on Intelligence levied some heavy accusations against both Huawei and ZTE in a report this week. Now ZTE has responded, saying it is "disappointed" with the conclusions reached in the report, and calling on the investigation to broaden its scope to include every company that makes telecommunications equipment in China — including companies from the US.
"This finding would apply to any company operating in China. "
In the statement, ZTE refers to...
Huawei responds to House Committee investigation, says evidence of concerns lacking
Huawei has released an official statement on the US House Permanent Select Committee on Intelligence's investigation into Huawei and ZTE's ties to the communist Chinese government released today. The investigation resulted in a recommendation from the Committee that U.S. companies should avoid using Huawei's infrastructure equipment because of concerns of possible corporate espionage and other homeland security worries. Huawei says that the report was incomplete, and that it "failed to...
Huawei and ZTE pose national security risk according to US Congressional report
Huawei Technologies Co. Ltd. and ZTE Corp., China’s two biggest makers of telecommunications equipment, are facing intense scrutiny thanks to a US House Intelligence Committee report. Speaking on 60 Minutes, Committee chairman Mike Rogers urged businesses to "find another vendor if you care about your intellectual property; if you care about your consumers’ privacy, and you care about the national security of the United States of America." The report is the result of an 11-month...
