Архив метки: ZTE

U.S. lawmakers warn Canada to keep Huawei out of its 5G plans

In a letter addressed to Canadian Prime Minister Justin Trudeau, Senators Mark Warner and Marco Rubio make a very public case that Canada should leave Chinese tech and telecom giant Huawei out of its plans to build a next-generation mobile network.
“While Canada has strong telecommunication security safeguards in place, we have serious concerns that such safeguards are inadequate given what the United States and other allies know about Huawei,” the letter states. The senators warn Canada to “reconsider Huawei’s inclusion in any aspect of Canada’s 5G development, introduction, and maintenance.”
The outcry comes after the head of the Canadian Centre for Cyber Security dismissed security concerns regarding Huawei in comments last month. The Canadian Centre for Cyber Security is Canada’s designated federal agency tasked with cybersecurity.
Next generation 5G networks already pose a number of unique security challenges. Lawmakers caution that by allowing companies linked to the Chinese government to build 5G infrastructure, the U.S. and its close allies (Canada, Australia, New Zealand and the U.K.) would be inviting the fox to guard the henhouse.
As part of the Defense Authorization Act, passed in August, the U.S. government signed off on a law that forbids domestic agencies from using services or hardware made by Huawei and ZTE. A week later, Australia moved to block Huawei and ZTE from its own 5G buildout.
Due to the open nature of intelligence sharing between the U.S. and its closest allies, the Canadian government would be able to obtain knowledge of any specific threats that substantiate the U.S. posture toward the Chinese company. “We urge your government to seek additional information from the U.S. intelligence community,” the letter implores.

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U.S. lawmakers warn Canada to keep Huawei out of its 5G plans

Санкции США против ZTE ударили по владельцам «Билайна»

Сотовые операторы группы Veon в разных странах столкнулись с проблемами в модернизации своих сетей из-за санкций, введенных властями США против ZTE. Так, украинский «Киевстар» запустил свою 4G-сеть позже конкурентов.
Санкции США против ZTE ударили по владельцам «Билайна»

ZTE replaces its CEO and other top execs

A number of top executives are out at ZTE as the phone maker works to fulfill the requirements of U.S.-imposed restrictions. Among the big changes up top is new CEO Xu Ziyang, who formerly headed up the company’s operations in Germany. A new CFO, CTO and head of HR have been named, as well, according to The Wall Street Journal.
The move comes a few days after company slowly began to resume some business operations on a one-month waver, following a seemingly D.O.A. seven-year export ban. The ban was announced back in April, after the company failed to appropriately punish top employees over Iran/North Korean trade violations.
Trump, however, was quick to toss the company a lifeline, citing potential job loss in China. The President’s willingness to bail out ZTE has been met with staunch criticism by many, including members of his own party. A bipartisan push in Congress to reinstitute the ban began in Congress last month. Many of the issues appear to stem from ties to the Chinese government that also put Huawei in hot water with U.S. security orgs.
For now, however, the company appears to be springing back to life, as it rushes to comply with the most recent laundry list of restrictions. The moves come in the wake of a $1 billion fine and the effective freeze on operations as the company mulled a way forward without relying on products from U.S. businesses like Google and Qualcomm.
In that time, ZTE has lost billions, and grappled with other…inconveniences. Of course, even with these changes, the company isn’t out of the woods just yet. In addition to on-going financial issues, security and other concerns could be enough to put consumers in the U.S. and other countries off the company altogether.

ZTE replaces its CEO and other top execs

How ZTE became the focal point of US/China relations

Here in the States, ZTE has been content with a kind of quiet success. The Chinese smartphone maker has landed in the top five quarter after quarter (sometimes breaking the top three, according to some analysts), behind household names like Apple, Samsung and LG. Suddenly, however, the company is on everyone’s lips, from cable news to the president’s Twitter account.
It’s the kind of publicity money can’t buy — but it’s happening for one of the worst reasons imaginable. ZTE suddenly finds itself in the eye of a looming trade war between superpowers. Iranian sanctions were violated, fines levied and seven-year international bans were instated.
It’s like a story ripped from the pages of some Cold War thriller, though instead of Jason Bourne, it’s that one budget smartphone company that you’ve maybe heard of, who maybe makes that weird Android phone with two screens.
So, how did we get here?
ZTE began U.S. operations in 1998, a little over a decade after forming in Shenzhen (and a year after going public in China) as Zhongxing Semiconductor Co., Ltd. The change of name to Zhongxing Telecommunications Equipment reflects the newfound focus for the company, which employees around 75,000 and operates in 160 countries.
While ZTE has flirted with premium and sometimes bizarre devices, in the smartphone world, the company is primarily known for its budget hardware. It’s no coincidence that the company was tapped by google to be the first to run Android Oreo Go Edition (nee Android Go). The manufacturer has found particular success in the developing world, while making significant gains in the U.S. by releasing dozens of low-cost devices targeted at prepaid users.
In recent years, however, the company has come under increased scrutiny on two fronts. First, there’s the issue of the company’s perceived ties to the Chinese government. It’s the same thing that’s tripped up fellow Chinese handset manufacturer Huawei in its pursuit of the U.S. market.
In Huawei’s case, multiple warnings from top U.S. security agencies has severely hobbled any chance of making significant headway in this country. The company kicked off the year with the one-two punch of having AT&T pull out of a deal last minute, only to have Best Buy stop restocking its product on store shelves. ZTE, on the other hand, has run into less headwind there.
In February, top officials at the FBI, CIA and NSA all warned against buying product from both companies over remote surveillance concerns and later ending their sale at military bases. But after making significant inroads through non-contract carriers like Boost, Cricket and Metro PCS, the warnings appear to have had little impact on the company.
The same, however, can’t be said of a seven-year ban.
In 2016, the U.S. Commerce Department found the company guilty of violating U.S. sanctions. The department disclosed internal documents from the company naming “ongoing projects in all five major embargoed countries — Iran, Sudan, North Korea, Syria and Cuba.” That’s a big issue when selling a product that contains, by some estimates, a quarter of components created by U.S. companies — not to mention all of the Google software.
The following year, the company pleaded guilt and agreed to a $1.19 billion fine, along with the stipulation that it would punish senior management for the transgression. Last month, however, the DOC said ZTE failed to live up to the latter part of the deal, issuing an even steeper fine as a result.
“ZTE misled the Department of Commerce,” the department said in a statement to TechCrunch at the time. “Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behavior cannot be ignored.”
The new punishment bans U.S. component manufacturers from selling to ZTE for seven years. A few days later, the company told TechCrunch that the export ban would “severely impact” its chances of survival. And then, last week, the company ceased major operating activities.
“As a result of the Denial Order, the major operating activities of the company have ceased,” it wrote in an exchange filing. “As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations.”
In the meantime, the company was reportedly meeting with companies like Google in hopes of figuring out a workaround, while China was said to be meeting with U.S. officials to discuss the steep ban. For some, the ZTE ban was seen as a political move amidst a potential trade war, and a major roadblock toward negotiations.

President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!
— Donald J. Trump (@realDonaldTrump) May 13, 2018

That leads us to Sunday, when Trump tweeted, “President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!”
Job loss in China seems like an odd motivator for any U.S. president, let along Trump, but things make significantly more sense when you consider the sheer size of a company like ZTE. If a U.S. trade ban caused the company to fold, it’s easy to see how that could severely impact already tenuous relations between the two countries.
“The Chinese have suggested that ZTE was a show-stopper,” international studies expert Scott Kennedy succinctly told NPR, “if you kill this company, we’re not going to be able to cooperate with you on anything.”

The Washington Post and CNN have typically written false stories about our trade negotiations with China. Nothing has happened with ZTE except as it pertains to the larger trade deal. Our country has been losing hundreds of billions of dollars a year with China…
— Donald J. Trump (@realDonaldTrump) May 16, 2018

And that brings us to this morning — and other Trump tweet. “The Washington Post and CNN have typically written false stories about our trade negotiations with China,” Trump writes. “Nothing has happened with ZTE except as it pertains to the larger trade deal. Our country has been losing hundreds of billions of dollars a year with China[…]…haven’t even started yet! The U.S. has very little to give, because it has given so much over the years. China has much to give!”
Those tweets, it should be noted, were most likely posted in reaction to bipartisan concern about Trump’s focus. “#China intends to dominate the key industries of the 21st Century not through out innovating us, but by stealing our intellectual property & exploiting our open economy while keeping their own closed,” Marco Rubio tweeted earlier this week. “Why are we helping them achieve this by making a terrible deal on ZTE?”
So things are weird. And it’s 2018, so expect that it will only get weirder from here.

How ZTE became the focal point of US/China relations

ZTE said to be meeting with Google over US export ban

Yesterday was a rough one for ZTE. A year after pleading guilty to violating sanctions with Iran and North Korea, the U.S. Department of Commerce brought the hammer down and announced a seven-year export restriction on goods sporting U.S. components.
That applies to more than a quarter of the components used in the company’s telecom equipment and mobile devices, according to estimates, including some big names like Qualcomm. The list may well also include Google licenses, a core part of the company’s Android handsets. According to a Bloomberg unnamed source, ZTE is evaluating its mobile operating system options as its lawyers meet with Google officials.
Many of the internal components can be replaced by non-U.S. companies. ZTE can likely lean more heavily on fellow Chinese manufacturers to provide more of the product’s internals, but it’s hard to see precisely where it goes from here with regard to an operating system. There’s an extremely small smattering of alternatives open to the company, but none are great. Each would essentially involve the company working to build things, including app selections, from the ground up — and likely play a much more central role in the OS’s development.
As for Google’s role in all of this, ZTE certainly isn’t make or break for Android’s fortunes. Still, it’s a pretty sizable presence. As of late last year, it commanded 12.2 percent of U.S. market share, putting it in fourth place behind Apple, Samsung and LG. It’s certainly in Google’s best interest to maintain as many prominent hardware partners as possible — though, not if it comes with the added risk of upsetting the DOC in the process.

ZTE said to be meeting with Google over US export ban