WebProNews

Tag: China

  • FCC Bans Pacific Networks And ComNet Over Espionage Concerns

    FCC Bans Pacific Networks And ComNet Over Espionage Concerns

    The Federal Communications Commission (FCC) has banned two more telecom companies from China from operating in the US.

    For the last several years, the US has been cracking down on Chinese firms over espionage concerns. While virtually all companies are required to help Beijing when called on, some are viewed as especially close to the Chinese government, and therefore a greater security risk.

    Pacific Networks and ComNet are the latest to have their authority to operate within the US revoked, essentially banning them.

    “The Federal Communications Commission adopted an Order ending the ability of Pacific Networks Corp. and its wholly-owned subsidiary, ComNet (USA) LLC, to provide domestic interstate and international telecommunications services within the United States,” reads the FCC’s statement. “The Order on Revocation and Termination directs the companies to discontinue any domestic or international services that they provide pursuant to their section 214 authority within sixty days following the release of the Order. Based on input from Executive Branch agencies, thorough review of the companies’ responses in this proceeding, the public record, and the FCC’s public interest analysis under the law, the Commission finds that today’s action safeguards the nation’s telecommunications infrastructure from potential security threats.”

  • China Exported 500,000 Electric Vehicles in 2021, Leading the World

    China Exported 500,000 Electric Vehicles in 2021, Leading the World

    China is the leading electric vehicle (EV) exporter, exporting some 500,000 units in 2021 alone.

    Western countries have been eying China as the country has taken the lead in manufacturing, 5G, and other industries, and as its GDP continues to grow. There’s now another area where China is leading, namely in the EV export market.

    According to Nikkei Asia, China’s exports were bolstered by affordable models that made their way into Europe and Southeast Asia.

    Automakers around the world are racing to transition to EVs. It remains to be seen, however, if other countries will catch up and overtake China’s lead.

  • China Plans to Add 600,000 5G Base Stations In 2022

    China Plans to Add 600,000 5G Base Stations In 2022

    China is on pace to add some 600,000 5G base stations in 2022, helping the country solidify its position as the leading 5G nation.

    China jumped to an early lead in the 5G race and, according to Tech Wire Asia, the country is planning some major expansion in 2022, adding some 600,000 base stations. The country already has 5G coverage in every major city, as well as 87% of rural areas, far ahead of the US and many other countries.

    The additional 600,000 stations will bring the country’s total to 2 million. The expansion should add to the coverage, speed, and reliability of China’s 5G network.

    This is likely to further increase concerns over the slow pace of 5G deployment in the US, something that has already been at the center of discourse and discussion. Former Google CEO Eric Schmidt has been a critic of the US 5G rollout for some time.

    “China is 10x ahead of us in the 5G space. We’ve ceded semiconductor leadership to East Asia. This is a national emergency. We must take action now if we want to maintain U.S. competitiveness in the future.”

    -Eric Schmidt (@ericschmidt), March 7, 2021

    More recently, Schmidt co-authored an op-ed in The Wall Street Journal saying that 5G should be a “national priority” for the US.

  • US Ramping Up Pressure on Chinese Companies Over Russia Sanctions

    US Ramping Up Pressure on Chinese Companies Over Russia Sanctions

    The US is already ramping up pressure on Chinese companies to cooperate with sanctions against Russia, despite China being critical of such sanctions.

    The international community is implementing sanctions in an effort to bring a peaceful resolution to Russia’s invasion of Ukraine, in lieu of boots on the ground. One possible impediment to that strategy is China, which provides up to a third of Russia’s semiconductors, and roughly half of its computers and smartphones, potentially giving Russia an important lifeline in its attempts to combat sanctions.

    According to Bloomberg, however, the US will likely use export control rules in an effort to force Chinese companies to help with the sanctions, companies like Lenovo. The plan is similar to how the US cut Huawei off from chips made by TSMC, using export rules to prohibit Huawei from benefiting from any technology derived from US intellectual property. As Bloomberg points out, any company that ignores those export rules does so at its own peril, risking being cut off from US-based tech itself, or having its executives prosecuted.

    China has made no secret of its disagreement with the international community over sanctions against Russia. With Huawei as a recent example of how poorly things can go for a company that relies on US-based tech, it’s likely many Chinese companies will get on board with restricting tech exports to Russia.

  • FBI: Don’t Take Personal Devices to Beijing Olympics

    FBI: Don’t Take Personal Devices to Beijing Olympics

    The FBI is warning athletes to leave their personal devices at home when they travel to Beijing for the Winter Olympics.

    The Dutch Olympic Committee warned its athletes in mid-December against bringing personal electronics to China. China has a long-standing history of espionage and surveillance, a major concern for visiting athletes and dignitaries.

    The FBI is now echoing the Dutch committee’s warning, telling athletes to leave their personal devices at home, in favor of burner devices.

    “The FBI urges all athletes to keep their personal cell phones at home and use a temporary phone while at the Games,” the FBI warns. “The National Olympic Committees in some Western countries are also advising their athletes to leave personal devices at home or use temporary phones due to cybersecurity concerns at the Games. The FBI to date is not aware of any specific cyber threat against the Olympics, but encourages partners to remain vigilant and maintain best practices in their network and digital environments.”

  • FCC Bans China Unicom Americas’

    FCC Bans China Unicom Americas’

    China Unicom Americas’ is the latest Chinese company to be banned in the US, with the Federal Communications Commission (FCC) announcing it January 27.

    Chinese companies are increasingly coming under pressure from the US, over a combination of national security concerns and souring trade relations with China. In particular, the US has voiced concerns about the role Chinese companies play in supporting Beijing’s espionage efforts. Huawei is the most high-profile company banned by the US and its allies, resulting in Huawei’s business being crippled.

    China Unicom Americas’ has now suffered the same fate as Huawei, with the FCC banning it from doing business in the US.

    The Order on Revocation directs China Unicom Americas to discontinue any domestic or international services that it provides pursuant to its section 214 authority within sixty days following the release of the Order. Based on input from Executive Branch agencies, thorough review of the company’s responses in this proceeding, the public record, and the FCC’s public interest analysis under the law, the Commission finds that today’s action safeguards the nation’s telecommunications infrastructure from potential security threats.

    Meanwhile, China Telecom told AFP News that the FCC”s decision was “without any justifiable grounds and without affording required due process.”

  • New Lockdowns in China Are Impacting Chipmakers

    New Lockdowns in China Are Impacting Chipmakers

    Amid the Omicron COVID surge, new lockdowns in China are negatively impacting the semiconductor industry.

    According to The Mercury News, the city of Xi’an is under some of the tightest restrictions since the original Wuhan lockdowns. Both Samsung and Micron are warning they will have to adjust operations as a result.

    “New or more stringent restrictions impacting our operations in Xi’an may be increasingly difficult to mitigate,” Micron said.

    The computer industry was especially hard-hit in the early days of the pandemic, and has struggled to catch up with demand ever since. Just as many companies were hoping for a return to normal, the Omicron variant is once again threatening to upend the progress that has been made.

    The new lockdowns in China will likely only reinforce calls for semiconductor companies to diversify their manufacturing and supply chains so they’re not overly dependent on a single country.

  • China Claims Two Close Calls With Space Station and Starlink Satellites

    China Claims Two Close Calls With Space Station and Starlink Satellites

    China has filed a complaint with the UN claiming its space station had two close calls with Starlink satellites.

    Starlink is the constellation of satellites SpaceX is launching to provide high-speed internet access. The company’s initial plansinvolve 12,000 satellites, but it hopes to eventually launch as many as 42,000. Needless to say, not everyone is happy with the thought of that many new objects in orbit, with astronomers saying it will significantly impact their view of the sky.

    China is now adding to the list of concerned voices, according to The Verge, complaining to the UN that its space station had to take evasive action to avoid collisions with Starlink satellites.

    The complaint reads:

    China wishes to request the Secretary-General of the United Nations to circulate the above-mentioned information to all States parties to the Outer Space Treaty and bring to their attention that, in accordance with article VI of the Treaty, “States Parties to the Treaty shall bear international responsibility for national activities in outer space, including the moon and other celestial bodies, whether such activities are carried on by governmental agencies or by non-governmental entities…”

    It remains to be seen if any action will be taken, or restrictions put in place, to avoid such incidents in the future.

  • China Will Ban Companies From Going Public Overseas

    China is on the verge of closing a loophole, making it illegal for companies to go public overseas.

    Many Chinese tech companies have used the VIE structure as a loophole to go public on foreign markets. This allows them to raise substantially more capital by tapping into international investors.

    According to Bloomberg, sources close to the matter say Beijing is preparing to close that loophole, although the China Securities Regulatory Commission said such reports are not true.

    If Bloomberg’s sources are correct, the move would have major repercussions on the Chinese tech industry, as well as investors around the world.

  • Yahoo the Latest US Company to Pull Out of China

    Yahoo the Latest US Company to Pull Out of China

    Yahoo is the latest US company pulling out of China, citing an “increasingly challenging business and legal environment.”

    China has been cracking down on the tech industry and making it difficult for foreign companies to compete. The country also has a long history of internet censorship. As a result, a number of high-profile companies have announced plans to leave the market, including LinkedIn and Epic.

    According to Associated Press, Yahoo has now joined their ranks and announced it will no longer offer services in mainland China beginning November 1.

    “Yahoo remains committed to the rights of our users and a free and open internet. We thank our users for their support,” the statement read.

  • China Cracking Down on Exporting Customer Data Internationally

    China Cracking Down on Exporting Customer Data Internationally

    China is cracking down on exporting customer data internationally, requiring that companies get the government’s permission first.

    China has been cracking down on its tech companies in recent months. The video game industry has been particularly hard hit, with Beijing limiting how many hours per week kids can play games.

    According to the AP, in its latest efforts Beijing is restricting how much data companies can collect about their customers.

    A separate law that takes effect Monday establishes security standards, prohibits companies from disclosing information without customer permission and tells them to limit how much they collect. Unlike data protection laws in Western countries, the Chinese rules say nothing about limiting government or ruling Communist Party access to personal information.

    Companies will also have to report what and how much customer information they plan to transfer internationally, as well as what security measures have been implemented to protect the data. Regulators will decide within a week of a report whether to accept and approve it, or whether to launch their own review. If the regulators decide to initiate a review, the process can take up to 60 days.

    The new regulations could put Chinese companies at a major disadvantage when competing globally.

  • Huawei Sales Down 32% As Company Reels From Sanctions

    Huawei Sales Down 32% As Company Reels From Sanctions

    Huawei sales are down 32% from last year as the company continues to struggle with sanctions from the US and its allies.

    Once a leader in the network equipment and smartphone markets, Huawei came under scrutiny for its close ties to Beijing and the Chinese intelligence community. US intelligence agencies, as well as those from other countries, viewed the company as a threat to national security and took steps to ban it from participating in 5G network rollouts.

    The US also took action to cut Huawei off from the semiconductors and supplies it needed to build its own line of smartphones, crippling the company to the point that it ended up selling off Honor, one of its smartphone brands.

    According to The Seattle Times, the various sanctions have had a devastating impact, with Huawei’s sales down 32% in the first nine months of 2021, compared with last year.

    Huawei has been pivoting to other businesses, such as cloud computing and software, areas less vulnerable to sanctions, but those endeavors have yet to make up for the company’s lost business.

  • FCC Wants to Ban Chinese Drone Maker, Dubbed ‘Huawei on Wings’

    FCC Wants to Ban Chinese Drone Maker, Dubbed ‘Huawei on Wings’

    FCC Commissioner Brendan Carr is calling for a review of Chinese drone maker DJI, saying it is potentially “Huawei on wings.”

    Huawei is one of several Chinese firms banned by the US over national security concerns. The US has pressured allies to do the same, with many following suit. Commissioner Carr is concerned DJI may represent a similar threat.

    “DJI drones and the surveillance technology on board these systems are collecting vast amounts of sensitive data—everything from high-resolution images of critical infrastructure to facial recognition technology and remote sensors that can measure an individual’s body temperature and heart rate,” Commissioner Carr stated. “Security researchers have also found that DJI’s software applications collect large quantities of personal information from the operator’s smartphone that could be exploited by Beijing. Indeed, one former Pentagon official stated that ‘we know that a lot of the information is sent back to China from’ DJI drones.”

    Carr also expressed concern over DJI helping Beijing surveil the Uyghurs in Xinjiang, a group the Chinese government has been persecuting with forced labor, forced sterilizations and genocide.

    “DJI’s collection of vast troves of sensitive data is especially troubling given that China’s National Intelligence Law grants the Chinese government the power to compel DJI to assist it in espionage activities. In fact, the Commerce Department placed DJI on its Entity List last year, citing DJI’s role in Communist China’s surveillance and abuse of Uyghurs in Xinjiang. Add to this information the widespread use of DJI drones by various state and local public safety and law enforcement agencies as well as news reports that the U.S. Secret Service and FBI recently bought DJI drones, and the need for quick action on the potential national security threat is clear.

    Carr concluded by saying the FCC should add DJI to the Covered List.

    “After all, the evidence against DJI has been mounting for years, and various components of the U.S. government have taken a range of independent actions—including grounding fleets of DJI drones based on security concerns. Yet a consistent and comprehensive approach to addressing DJI’s potential threats is not in place. That is why the FCC should take the necessary steps to consider adding DJI to our Covered List. We do not need an airborne version of Huawei. As part of the FCC’s review—and in consultation with national security agencies—we should also consider whether there are additional entities that warrant closer scrutiny by the FCC.”

  • Strong Worldwide 5G Helps Ericsson Beat Estimates

    Strong Worldwide 5G Helps Ericsson Beat Estimates

    Ericsson reported its third-quarter results, beating expectations despite taking a hit in China.

    Ericsson is one of the leading providers of telecom equipment. The company is currently working to help carriers transition to 5G. Ericsson has been warning, however, that loss of market share in China would negatively impact the company. The company has lost market share as a result of China retaliating against foreign companies whose countries banned Huawei.

    Despite the challenges, Ericsson has managed to beat revenue expectations, reporting earnings of 8.8 billion Swedish crowns, or $1.02 billion.

    The company blamed China, as well as some supply chain issues, for its negative growth in organic sales.

    “While we continued to gain share in a growing market, the expected sales reduction in Mainland China, lower variable sales in Managed Services and some supply chain disturbances, led to a negative organic sales development of -1%.”

    All-in-all, however, the results were welcome news for the company.

  • Microsoft Shutting Down LinkedIn China Due to Beijing Tech Crackdown

    Microsoft Shutting Down LinkedIn China Due to Beijing Tech Crackdown

    Microsoft has announced it is shutting down LinkedIn in China as Beijing continues its crackdown on tech companies.

    LinkedIn is one of the leading job search and professional networking platforms. Mohak Shroff, Senior Vice President of Engineering at LinkedIn, says the company initially decided to make a version of LinkedIn available in China, despite the challenges of adhering to Beijing regulation.

    The company also set guidelines it would use to reevaluate the situation as needed. Such a situation has now occurred, leading the company to sunset its localized version.

    We’re also facing a significantly more challenging operating environment and greater compliance requirements in China. Given this, we’ve made the decision to sunset the current localized version of LinkedIn, which is how people in China access LinkedIn’s global social media platform, later this year.

    LinkedIn still wants to help serve the China job market, and intends to release a standalone jobs app later this year.

    Later this year, we will launch InJobs, a new, standalone jobs application for China. InJobs will not include a social feed or the ability to share posts or articles. We will also continue to work with Chinese businesses to help them create economic opportunity.

  • US Leads the World in Bitcoin Mining After China Crackdown

    US Leads the World in Bitcoin Mining After China Crackdown

    Following China’s crackdown on bitcoin mining, the US now leads the world in bitcoin mining.

    China was once the leading bitcoin mining country, accounting for roughly 75% of all mining. Recently, however, the Chinese government has cracked down on cryptocurrencies, making all transactions and mining illegal.

    According to BBC, the US has now taken China’s spot as the leading bitcoin mining country, at 35.4%. Kazakhstan and Russia round out the top three with 18.1% and 11% respectively.

  • China’s Cryptocurrency Crackdown Intensifies, All Transactions Banned

    China’s Cryptocurrency Crackdown Intensifies, All Transactions Banned

    China is intensifying its war on cryptocurrencies, banning all transactions, as well as all mining.

    China has traditionally accounted for the lion’s share of crypto mining, and especially bitcoin, but the government has been taking an increasingly dim view of the technology. Back in May, there was talk the government could eventually issue a total ban on crypto, 

    The Chinese government has followed through on those threats, banning all cryptocurrency transactions, as well as mining, on Friday.

    “This is really about establishing a state monopoly in payments,” George Selgin, an economist and senior fellow at the Cato Institute, told The Seattle Times. “The most obvious implication is that the state will have more opportunities to monitor citizens’ economic activity.”

    Bitcoin dropped as much as 7% on the news, before eventually recovering.

  • China Limiting Minors’ Usage of the Chinese Version of TikTok

    China Limiting Minors’ Usage of the Chinese Version of TikTok

    In yet another attempt to limit the impact of technology on young people, China is limiting Douyin usage for those under 14 to 40 minutes a day.

    Douyin is the Chinese version of TikTok and is wildly popular in the country. Despite the app’s success, China is working to minimize the effect of technology on its younger generation. The country recentlylimited how much time minors could spend playing video games, and is looking to do the same with social media.

    Douyin is rolling out a “youth mode” that will restrict access for all users under 14, according to The Wall Street Journal, via Insider.

    “If you are a user aged under 14, you’ll discover that you’re already in ‘youth mode’ when you open the app,” said the company in a statement.

    It remains to be seen what impact the new regulation will have on ByteDance, the company responsible for both Douyin and TikTok.

  • Arm’s China Venture Goes Rogue, Seizes IP and Declares Independence

    Arm’s China Venture Goes Rogue, Seizes IP and Declares Independence

    Arm Holding’s venture in China, Arm China, has gone rogue, seized IP and is trying to establish itself as an independent company.

    As part of its efforts to expand in China, Arm’s parent company, SoftBank, was pressured to create a joint venture in which Arm only owned 49% of the venture, Arm China. It didn’t take long for problems to develop and Arm China’s CEO, Allen Wu, went rogue. 

    Despite SoftBank’s allies within Arm China voting 7-1 to fire Wu, he remained in power via the company seal. Under Chinese law, the seal gives the holder control over a company, and Arm Holdings has not been able to retrieve it from Wu. In the meantime, Wu ousted any officials in opposition to his continued leadership and hired security loyal to him.

    According to SemiAnalysis, the situation has escalated significantly. Arm China has seized the Arm Holdings IP it had access to and held an event declaring its independence as a new company, 安谋科技. The new company plans to chart its own path in the semiconductor industry, building on the IP it has to create its own designs.

    It’s unclear to what extent this will hurt Arm Holdings. Since this drama has been building for some time, Arm had already stopped sharing any new IP with the Chinese venture. According to SemiAnalsys, the latest CPU IP Arm China had access to was the Cortex A77. Critically, the Armv9 designs were never made available to Arm China. The Armv9 is the next generation Arm achitecture that will power future chips. Even with its most recent IP protected, however, China is still a huge market for Arm Holdings, one it may lose altogether to 安谋科技. 

    The bigger issue at stake is whether Chinese authorities will step up and enforce Arm Holdings’ position, or whether they will embrace the new entity, regardless of the unethical way it was founded. So far, Chinese authorities have been of no help to Arm Holdings, which does not bode well.

    Should China back 安谋科技, it will send a very clear message to other companies looking to do business in the country:

    ‘We won’t honor your IP and will encourage our own companies to steal, hijack and pirate your innovations. Do business here at your own peril’

  • China’s Regulators May Ban Data-Heavy Companies From US IPOs

    China’s Regulators May Ban Data-Heavy Companies From US IPOs

    China’s regulators may look to ban data-heavy companies from pursing IPOs in the US.

    Like the US, China is looking to reign in the power and influence of its Big Tech firms. Companies with access to large quantities of data are particularly important to the country, and have already been pawns in the trade war between Beijing and Washington. TikTok is one example, with the US trying to force a sale under threat of ban, and China taking steps to restrict the export of the kind of algorithms TikTok relies on.

    China’s latest move is in the form of proposed rules that would keep data-heavy companies from going public in the US, according to The Wall Street Journal. Such a move is sure to be unpopular with many companies looking to cash in on an IPO, but China clearly wants to keep what it considers to be sensitive technologies in-country.

    It remains to be seen if there will be any retaliation or fallout from Washington.

  • WeChat Restarts New User Registration

    WeChat Restarts New User Registration

    WeChat has restarted new user registration, roughly a week after it halted registrations to implement security upgrades.

    WeChat is a popular messaging platform in China, as well as among Chinese individuals abroad. The company had paused registrations in order to implement security upgrades in an effort to meet regulations by the Chinese government.

    According to Reuters, the company has now resumed registrations. The news is in line with its estimates for how long the upgrade would take, as the company was saying early August.