Germany is poised to ban Chinese firms Huawei and ZTE from participating in its 5G networks, dealing another blow to the firms.
The US has already banned Huawei and ZTE, and has been pressuring its allies to do the same. Intelligence agencies have long expressed concerns over the companies’ ties to Beijing and their obligation to assist China’s foreign surveillance efforts.
According to Reuters, Germany is preparing to ban the two companies, prohibiting telecom operators from using their equipment. In addition, Germany may even require operators to remove existing equipment manufactured by Huawei and ZTE, similar to measures taken in the US.
Interestingly, although Huawei would not publicly speculate on Germany’s actions, a spokesperson told Reuters that the company had a “very good security record.”
Of course, that statement ignores the fact that Huawei had the ability to monitor calls on one of the largest Dutch wireless networks, even raising the possibility that it could have monitored the calls of then prime minister Jan Peter Balkenende.
The Biden administration has tightened the noose around Huawei’s phone business, restricting access to older technology.
Huawei was once one of the biggest smartphone makers in the world and looked poised to dominate the industry for years. Concerns over its association with the Chinese government was its undoing, with the US and its allies imposing sanctions and bans on the company. As a result, Huawei’s phone business was virtually ruined.
Despite being cut off from more advanced technology, the company was still allowed to purchase older tech from US companies. It appears that door has now slammed shut, according to Reuters, with the US government banning the company from buying most of the remaining tech it still had access to.
According to the report, Huawei is now effectively cut off from US-based tech, including “4G items, Wifi 6 and 7, artificial intelligence, and high-performance computing and cloud items.”
The Commerce Department would not confirm or deny the report. If it is true, however, it would deal a major blow to Huawei’s phone business, as well as its other endeavors.
The FCC is continuing its crackdown on Chinese telecom firms, banning equipment from Huawei, ZTE, and others.
The FCC has been cracking down on Chinese firms that are suspected of being a threat to US national security. While all Chinese companies are required to cooperate with Beijing’s surveillance and espionage efforts, some companies are viewed as having closer ties to the Chinese government than others, making them a greater privacy and security threat.
The FCC has already placed restrictions on Huawei equipment being used in 5G networks, but the agency is now banning a much wider array of telecom and video equipment from Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology, and Dahua Technology, along with all their affiliates and subsidiaries.
“The FCC is committed to protecting our national security by ensuring that untrustworthy communications equipment is not authorized for use within our borders, and we are continuing that work here,” said Chairwoman Jessica Rosenworcel. “These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications.”
Seagate is facing bad news on two fronts, with the company cutting 3,000 jobs and facing accusations of violating US export restrictions.
Seagate is one of the leading computer storage makers, but has been impacted by the economic downturn and lessening demand for personal computers. According to Bloomberg, the company is cutting 3,000 jobs as a result.
“Global economic uncertainties and broad-based customer inventory corrections worsened in the latter stages of the September quarter, and these dynamics are reflected in both near-term industry demand and Seagate’s financial performance,” said Chief Executive Officer Dave Mosley. “We have taken quick and decisive actions to respond to current market conditions and enhance long-term profitability, including adjusting our production output and annual capital expenditure plans.”
Potentially far worse for the company are accusations that it illegally sold hard drives to Huawei. Huawei is one of the companies the US Commerce Department has blacklisted over allegations it serves as part of Beijing’s spying apparatus. According to Reuters, Seagate was served a “proposed charging letter” from the Commerce Department over the alleged violation.
Seagate maintained in a filing that its hard drives are not covered by the export restrictions, and it is therefore not guilty of violating US law.
Only time will tell if Seagate’s position is correct, but the company clearly has some issues to address.
The FBI has accused Huawei of spying for China and installing equipment that could disrupt nuclear operations communications.
The US and its allies have accused Huawei of spying for China for years and banned the company from participating in their wireless networks. While all Chinese companies are required to cooperate with Beijing, Huawei has long been seen as having a much closer relationship with the Chinese government than most.
According to a CNN exclusive, the FBI discovered evidence that Huawei installed equipment in locations where it could monitor and disrupt Department of Defense (DOD) communications, including those of US Strategic Command, which is tasked with oversight of the US nuclear arsenal.
According to the report, the FBI has known of the issue at least as far back as the Obama administration and has been investigating the risks. Huawei has, per usual, denied it is or has the capacity to engage in the spying it’s being accused of. The FBI insists the company is capable of capturing commercial traffic, as well as the restricted airwaves used by the DOD.
“This gets into some of the most sensitive things we do,” said one former FBI official with knowledge of the investigation. “It would impact our ability for essentially command and control with the nuclear triad. “That goes into the ‘BFD’ category.”
“If it is possible for that to be disrupted, then that is a very bad day,” the person added.
Huawei has continuously maintained it is being framed by US intelligence agencies and is innocent of the accusations against it. With these bombshell revelations, however, the company is going to have a hard time maintaining that stance.
FCC Chairwoman Jessica Rosenworcel has informed lawmakers that removing equipment from Huawei and ZTE will cost billions more than anticipated.
The United States banned Huawei and ZTE networking and telecoms equipment over national security concerns. Both companies were deemed a threat over their ties to the Chinese government. As a result, telecom operators were tasked with removing equipment made by the two companies from their networks. It appears the cost is significantly higher than anticipated.
According to Reuters, in a letter to Senator Maria Cantwell, head of the Committee on Commerce, Science, and Transportation, Rosenworcel outlined the massive shortfall in the available funding:
“To fund all reasonable and supported cost estimates…, the Reimbursement Program will require $4.98 billion, reflecting a current shortfall of $3.08 billion,” Rosenworcel wrote.
Without further funding, the FCC will allocate the original $1.9 billion according to Congress’ instructions.
“Absent an additional appropriation, the Commission will apply the prioritization scheme Congress specified,” Rosenworcel added.
The latest estimate appears to be slightly less than what the agency expected in February 2022, when it estimated the total cost to be $5.6 billion.
Canada is the latest country to ban Huawei, becoming the last of the so-called “Five Eyes” countries to do so.
Huawei has been widely accused of being a conduit for Beijing’s spying apparatus, leading the US and many of its allies to ban the company’s equipment from their 5G networks. The Five Eyes is an intelligence alliance comprised of the US, UK, Australia, New Zealand, and Canada. While the other four countries had already banned Huawei, Canada has now joined the rest of the alliance in doing so.
As recently as early 2020, Canada was still undecided about what to do with Huawei, although the country made it clear it would not “get bullied by any other jurisdictions” into making a decision. Its stance began to soften in 2021, with officials indicating they might finally be ready to ban the Chinese firm.
According to CBC, the Canadian government has not only banned Huawei from participating in future 5G network build-outs, but providers must rip out existing Huawei 5G equipment by June 28, 2024. In addition, any Huawei 4G equipment must be removed by Dec. 31, 2027.
“This is the right decision and we are pleased to announce it today because it will secure our network for generations to come,” Innovation, Science and Industry Minister François-Philippe Champagne said in a news conference Thursday.
In an unexpected consequence of the sanctions it has faced, Russia only has two months of digital storage left domestically.
Companies have been pulling out of Russia at a record pace, led by some of the biggest names in the tech industry. According to BleepingComputer, that has put Russia in a precarious position, with only two months of digital storage left. With Microsoft, AWS, and Google Cloud all boycotting the country, Russia simply doesn’t have the resources to handle its domestic needs.
A number of possibilities are on the table, including Moscow leasing all remaining domestic storage, or taking over the leftover equipment from providers that have left the country.
As BleepingComputer points out, Huawei may be another option. The company initially suspended operations in Russia till March 26, 2022. However, given that Huawei is already sanctioned by the US and can’t be hurt anymore than it already has, it may see little to lose and much to gain by becoming Russia’s primary tech supply chain.
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.
The US has banned Huawei and ZTE equipment from its 5G networks, but the cost of implementing the ban has now risen to $5.6 billion.
According to Network World, Congress had initially set aside $1.9 billion to fund the removal of the Chinese firms’ 5G equipment. At the heart of the issue are national security concerns over the two firms’ connection to Beijing. All Chinese companies are required to cooperate with the government, including its espionage efforts. While this may be a concern in any number of industries, it’s especially a concern in an industry that controls communication and data.
FCC Chairwoman Jessica Rosenworcel has informed Congress the removal of Huawei and ZTE will take at least $5.6 billion, a significant increase over the initial fund.
“Last year Congress created a first-of-its kind program for the FCC to reimburse service providers for their efforts to increase the security of our nations communications networks,” said Chairwoman Rosenworcel. “We’ve received over 181 applications from carriers who have developed plans to remove and replace equipment in their networks that pose a national security threat. While we have more work to do to review these applications, I look forward to working with Congress to ensure that there is enough funding available for this program to advance Congress’s security goals and ensure that the U.S. will continue to lead the way on 5G security.”
Vodafone Idea (Vi) is looking for a third-party provider of 5G equipment in an effort to avoid an Ericsson/Nokia duopoly.
Ericsson and Nokia are the two main 5G equipment manufacturers in the world. Huawei was once in the top three, but global sanctions have crippled the company’s ability to compete.
Despite there being two companies to choose from, Indian telecom company Vi is eager to avoid a duopoly, and is looking to source 5G equipment from a third company, according to TelecomTalk. The company is looking at both local and international vendors.
Despite its desire to avoid a duopoly, it’s unlikely Huawei or ZTE will be able to take advantage of the situation. The Indian government has been among those excluding Huawei from its 5G network rollout.
Canada may finally ban Huawei from its 5G networks, the last of the Five Eyes countries to do so.
Huawei has been banned from participating in 5G networks in the US, UK, Australia and New Zealand. Despite its allies doing so, Canada had signaled it would not necessarily follow the same course. The ruling Liberal government has been hesitant to ban Huawei, with Conservatives trying to pressure it to do so.
According to The Canadian Press, however, the government may finally be ready to ban the Chinese firm.
“However, in order to leverage this opportunity for economic growth through 5G, the safety and security of the technology must be ensured,” reads briefing notes prepared earlier this year for Bill Blair, when he was public safety minister.
“Incidents resulting from the exploitation of vulnerabilities by malicious actors will be more difficult to safeguard against, and could have a broader impact than in previous generations of wireless technology.”
Should Canada follow through on the ban, it would be another major hit to Huawei’s business.
US President Joe Biden has signed the Secure Equipment Act into law, preventing Huawei and ZTE from obtaining telecom licenses.
Huawei, ZTE, and other Chinese telecom companies have been deemed a security threat by the US government and intelligence agencies. The companies, especially Huawei, have been accused by governments around the world of serving as an avenue for Beijing to spy on organizations.
Despite Huawei and ZTE being banned from participating in US networks, that hasn’t completely stopped the two companies. Both have applied for, and been granted, licenses that did not involve federal funds. In fact, since 2018, the Federal Communications Commission (FCC) approved more than 3,000 such licenses for Huawei alone, leading to the nickname “Huawei Loophole.”
The Secure Equipment Act passed the Senate with unanimous support, and passed the House with only four votes against. With Biden’s signature, the legislation becomes law, closing the Huawei Loophole.
When the Secure Equipment Act was first introduced, FCC Commissioner Brendan Carr praised the implications of the new legislation.
“I commend Republican Whip Steve Scalise and Congresswoman Anna Eshoo for their leadership in securing America’s communications infrastructure,” Carr stated. “Their bipartisan Secure Equipment Act would close a glaring loophole that Huawei and other entities are exploiting today to place their insecure gear into our networks. I applaud their work to eliminate the threats posed by this equipment.”
Huawei has sold its x86 server business, another step in the firm’s efforts to insulate itself from sanctions.
Huawei has been struggling to reinvent itself following crippling sanctions at the hands of the US and its allies. The company has repeatedly been accused of aiding Beijing’s spying efforts, leading countries around the world to ban it from participating in their 5G networks. The US has even taken measures to cut Huawei off from the chips it uses to manufacture its devices.
The company had previously sold off its Honor brand of smartphones, and has now sold its x86 business to a state-owned company, according to LightReading. The business was struggling to secure enough chips to meet demand, given that it was cut off from buying Intel’s chips.
Huawei’s founder has said the company needs to pivot to software, a field less likely to be impacted by sanctions. This latest move is another step toward that goal.
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 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.”
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.
A new study is showing just how much Android snoops on its users, transmitting large quantities of data to third-parties and Google.
In the age-old iOS vs Android debate, the common argument against Android is the perceived lack of privacy. A team of researchers at the University of Edinburgh and Trinity College Dublin attempted to get to the bottom of the situation, and their findings were disturbing, to say the least.
The researchers looked phones made by Samsung, Huawei, Xiaomi and Realme. They also looked at two forks of the Android OS, LineageOS and /e/OS. At its heart, Android is an open source OS where anyone is free to modify it for their own uses, just as Google does. LineageOS and /e/OS are two such forks that place an emphasis on privacy by “de-Googling” the OS.
The researchers found that, with one exception, all flavors of Android transmitted substantial data to Google. Even worse, they also transmitted data to third-party companies, including Facebook.
We find that, with the notable exception of e/OS, even when minimally configured and the handset is idle these vendor-customized Android variants transmit substantial amounts of information to the OS developer and also to third-parties (Google, Microsoft, LinkedIn, Facebook etc) that have pre-installed system apps. While occasional communication with OS servers is to be expected, the observed data transmission goes well beyond this and raises a number of privacy concerns.
Here’s a detailed list of the information being sent:
Table of Android Data Sharing – Credit University of Edinburgh & Trinity College Dublin
The researchers also expressed concern about the possibility of companies being able to cross-link data in an effort to build a more comprehensive profile of the user.
We find that typically multiple parties collect data from a handset. For example, on a Samsung handset Samsung, Google and Microsoft/LinkedIn all collect data. That raises the question of whether the data collected separately by these parties can be linked together (and of course combined with data from other sources). While we are not in a position to know whether such linking actually takes place, by inspection of the identifiers jointly collected by the parties we can see whether the potential exists for data linking.
Potential for Android Data Cross-Linking – Credit University of Edinburgh & Trinity College Dublin
Overall, the researchers said the current situation raises serious concerns about the privacy Android offers — or doesn’t.
We present an in-depth analysis of the data sent by the Samsung, Xiaomi, Huawei, Realme, LineageOS and /e/OS variants of Android. We find that, with the notable exception of e/OS, even when minimally configured and the handset is idle these vendor-customized Android variants transmit substantial amounts of information to the OS developer and also to third-parties (Google, Microsoft, LinkedIn, Facebook etc) that have pre-installed system apps. While occasional communication with OS servers is to be expected, the observed data transmission goes well beyond this and raises a number of privacy concerns.
Google has been working to improve its image as a company that respects its users’ privacy. Creating an OS that serves to vacuum up large quantities of user data — and then sends that data to itself and third-parties companies — falls far short of what the company promises and what users deserve.
Huawei is preparing to invest $15 million over the next three years in Middle East cloud computing.
Huawei has suffered greatly at the hands of the US and its allies. In country after country, the company has been banned and restricted from participating in 5G networks over security concerns.
The company has increasingly been turning to its other businesses, including its cloud computing. According to Zawya, the company will spend $15 million over the next three years in the Middle East.
“[The program] will thus provide truly unique and rewarding offerings to local businesses, while safeguarding the region’s digital future through extensive training opportunities in the cloud arena,” said Eric Wan, vice president of cloud marketing, ecosystem and partner development at Huawei Middle East.
The US has cleared the way for Huawei to purchase chips for its auto component business, giving the company a bit of a reprieve.
Huawei has been reeling from sanctions and bans imposed by the US government and its allies over the last couple of years. The company is widely seen by intelligence agencies around the world as a threat to national security, thanks in large part to its close ties to Beijing. While the company’s woes began during the Trump administration, the Biden administration has continued applying pressure to the beleaguered company.
With its core business in jeopardy, Huawei has been looking to pivot to new markets, such as software and the automotive industry, in the hopes of better insulating itself from US actions.
According to Reuters, the US has approved supplier licenses that would allow Huawei to purchase the chips it needs for the auto industry. While the US went to great lengths to cut the company off from semiconductors for its smartphones and networking equipment, automotive chips are much simpler and aren’t seen as representing the same threat to national security as the general purpose, high-tech chips used in electronics.
It remains to be seen if Huawei will be able to capitalize on this reprieve, but it’s certainly some of the best news — and biggest opportunity — the company has had in years.
Huawei is planning a return to the “smartphone throne” after crippling sanctions had a devastating impact on the company’s business.
Huawei was the company to beat in the smartphone market, eclipsing Apple, Samsung, Xiaomi and every other company. Despite its success, Huawei came under scrutiny over its close relationship with the Chinese government. The company was seen as having closer ties than most to the government and intelligence community.
As a result of the concerns, the US government and many of its alliesbanned the company from participating in their 5G networks. The company’s equipment was banned and, in many cases, even removed from existing networks. The US government even took the step of shutting off Huawei’s access to the chips it needs to build its smartphones. The company ended up selling off its Honor brand, and its remaining business saw significant declines.
In spite of its setbacks, Huawei’s chairman says the company will return to the “smartphone throne,” according to Reuters.
“Everyone knows that phone chips need advanced technology in a small size with low power consumption. Huawei can design it, but no one can help us make it: we’re stuck,” said Huawei Chairman Guo Ping.
“Huawei will continue to exist in the field of mobile phones and with continuous advances in chip production, the smartphone throne will eventually return,” he continued.
