The Pentagon bans Huawei and ZTE phones from retail stores on military bases

Discussion in 'Smartphones and Tablets' started by hmscott, May 8, 2018.

  1. hmscott

    hmscott Notebook Nobel Laureate

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    China's ZTE halts major operations following US export ban
    By KELVIN CHAN, AP BUSINESS WRITER HONG KONG — May 9, 2018, 11:57 PM ET
    https://abcnews.go.com/Technology/wireStory/chinas-zte-stops-major-operations-us-export-ban-55044175

    "Chinese telecommunications company ZTE has halted its main operations after U.S. authorities cut off its access to American suppliers as President Donald Trump steps up pressure over trade and technology issues with Beijing.

    "Major operating activities of the company have ceased" as a result of the U.S. Commerce Department "denial order" issued last month, ZTE said in a statement issued late Wednesday.

    The Commerce Department has imposed a seven-year sales ban on ZTE in a case involving exports of telecom gear to Iran and North Korea.

    ZTE, a major supplier of telecoms networks and smartphones based in southern China, earlier said the ban threatened its existence by choking off access to U.S. suppliers of key technology and components like microchips.

    The suspension came amid worsening trade tensions between the U.S. and China centered on technology-related intellectual property, though ZTE's case dates back to before President Donald Trump took office in January 2017.

    A U.S. delegation traveled to Beijing last week to discuss the brewing trade conflict with their Chinese counterparts. During the meetings, Chinese officials said they also raised their objections to ZTE's punishment with the U.S. team, who they said agreed to report them to Trump.

    ZTE "maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations," it said in the statement issued to the Hong Kong stock exchange. "The company and related parties are actively communicating with the relevant U.S. government departments in order to facilitate the modification or reversal of the Denial Order by the U.S. government and forge a positive outcome in the development of the matters."

    The announcement comes days after ZTE said it had asked the Commerce Department's Bureau of Industry and Security to suspend the ban and had submitted extra information to bolster its case.

    U.S. authorities imposed the penalty after discovering that Shenzhen-based ZTE had misled regulators involving the illegal shipments to North Korea and Iran. The company paid a $1.2 billion fine in the case but failed to discipline employees involved and paid them bonuses instead.

    The company has more than 70,000 employees and has supplied networks or equipment to some of the world's biggest telecoms companies."
     
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  2. hmscott

    hmscott Notebook Nobel Laureate

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    Hikvision, Dahua and Hytera target of government technology ban
    The U.S. House of Representatives passed a bill last week that includes an amendment that prohibits federal agencies from purchasing video surveillance equipment from several China-based firms, including Hikvision, Dahua and Hytera Communications.
    BY JOEL GRIFFIN ON MAY 29, 2018
    http://www.securityinfowatch.com/ar...nd-hytera-target-of-government-technology-ban

    "In a move that seeks to allay cybersecurity concerns surrounding the government’s use of technologies manufactured by Chinese companies, the U.S. House of Representatives last week passed a bill that prohibits federal agencies from purchasing video surveillance equipment from several China-based firms, including Hikvision, Dahua and Hytera Communications.

    In a statement provided to SecurityInfoWatch.com, Jeffrey He, president of Hikvision USA Inc., and Hikvision Canada Inc., said their products “adhere to global cybersecurity standards” and that they would “vigorously defend” the company against “unproven accusations.” Dahua also pushed back against the proposed ban on Tuesday, saying in a statement on its website that they are a company with a "high level of business integrity" and that they are committed to complying with "all applicable laws and regulations" of the countries in which they operate.

    The ban would not only impact branded products from the companies named but also any other manufacturers that use Hikvision, Dahua and Hytera OEM solutions. According to the bill: “By not later than 180 days after the date of the enactment of this Act, each agency shall develop a plan…(that) shall include, but not be limited to, how the agency plans to deal with the impact of white label technology on its supply chain whereby the original manufacturer of technology is not readily apparent to a purchaser or user.”

    The ban was included as part of an amendment to the National Defense Authorization Act proposed by Rep. Vicky Hartzler (R-Mo.) that had originally only been limited to the government’s use of technologies and services from Chinese telecom giants Huawei and ZTE.

    Earlier this month, the Pentagon announced that it was banning the sale of Huawei and ZTE phones on U.S. military bases around the globe over security concerns. The heads of the U.S intelligence and law enforcement community had previously warned consumers against the use of devices manufactured by these companies in February.
    ..."

    The very purpose of the Chinese tech company ZTE is to spy on other countries, a competitor alleges in new court documents

    Tara Francis Chan, May 31, 2018 - 18h ago
    http://www.businessinsider.com/zte-created-to-spy-according-to-new-court-documents-2018-6?r=UK&IR=T

    China’s ZTE was built to spy and bribe, court documents allege

    By Nick McKenzie & Angus Grigg
    31 May 2018 — 7:34pm
    https://www.smh.com.au/business/com...e-court-documents-allege-20180531-p4ziqd.html

    Chinese interference in New Zealand at 'critical' stage, says Canada spy report
    Thu 31 May 2018 23.38 EDT
    https://www.theguardian.com/world/2...land-at-critical-stage-says-canada-spy-report

    Trump reaches deal with China to lift sanctions on Chinese tech giant ZTE despite blowback from Democrats, GOP
    Bob Bryan, May. 25, 2018, 8:38 PM
    The Commerce Department told members of Congress that the Trump administration reached a deal to lift sanctions on Chinese phone maker ZTE.
    In exchange for easing the sanctions, ZTE will be forced to "pay a bigger fine, have to hire American compliance officers, and they have to get rid of the current ZTE management team," according to a source familiar with the arrangement.
    ZTE was facing sanctions after selling goods containing US parts to Iran and North Korea.

    http://www.businessinsider.com/trump-administration-deal-with-china-on-zte-sanctions-2018-5
     
    Last edited: Jun 1, 2018
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  3. Maleko48

    Maleko48 Notebook Evangelist

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    Makes sense. Trump is an idiot if he doesn't think there is any risk involved in dealing with Chinese manufactured hardware on a broad scale.
     
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  4. hmscott

    hmscott Notebook Nobel Laureate

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    ZTE may be fined US$1.7 billion by the Trump administration, insiders say
    The US is looking to punish and tighten control over the Chinese telecommunications company before allowing it back into business
    PUBLISHED : Saturday, 02 June, 2018, 5:16am
    UPDATED : Saturday, 02 June, 2018, 5:44am
    http://www.scmp.com/news/china/econ...ation-may-impose-more-us1-billion-penalty-zte

    "The Trump administration may soon claim as much as US$1.7 billion in penalties from ZTE Corp, as it looks to punish and tighten control over the Chinese telecommunications company before allowing it back into business, according to people familiar with the matter.

    The US Commerce Department is also seeking unfettered site visits to verify that American components are being used as claimed by ZTE, and wants it to post calculations of the US components in its products on a website, the people said.

    ZTE sidelines two more senior executives amid US-China negotiations on export ban

    China’s No. 2 telecommunications equipment maker has been crippled by a ban imposed in April on buying US components for seven years for breaking an agreement reached after it was caught illegally shipping goods to Iran and North Korea.

    The negotiations with ZTE come as US Commerce Secretary Wilbur Ross heads to Beijing this weekend for trade talks. One source said Washington also wants ZTE to replace its board and executive team in as soon as 30 days, but a deal still has not been finalised, and the sources cautioned that the penalties were fluid and the terms could change.

    Representatives from the Commerce Department and ZTE did not immediately respond to a request for comment.

    American companies provide an estimated 25 to 30 per cent of components in ZTE’s equipment, which includes smartphones and gear to build telecommunications networks.

    The company’s status has become an important bargaining chip in high-level trade talks between China and Washington amid reports that if the US eases up on ZTE, China will buy more American agricultural goods.

    US may place compliance officers in ZTE’s offices, Wilbur Ross says

    US President Donald Trump tweeted last month that he told Commerce Department officials to find a way for ZTE to get back into business, later mentioning a US$1.3 billion fine and changes to its board and top management as a way to penalise the company before allowing it to resume business.

    But ZTE’s possible resuscitation has met strong resistance in Congress, where both Democrats and Trump’s fellow Republicans have accused him of bowing to pressure from Beijing to help a company that has been labelled a threat to US national security.

    The company, which suspended major operations in May, desperately needs a deal to get back in business, with estimates that it has lost more than $3 billion since the April 15 ban on doing business with US suppliers, a source familiar with the matter said last week.

    The ban came after the Shenzhen-based company admitted that while it dismissed four senior employees who had been involved in the original wrongdoing, it had not disciplined 35 others by either reducing their bonuses or reprimanding them, despite statements to the contrary, senior Commerce Department officials said at the time.

    Tencent may invest in chips after the wake-up call of ZTE’s ban

    While it is expected that the administration will claim a $1.7 billion penalty for ZTE, sources said that after breaking the figure down, ZTE will likely actually pay about $1 billion. In addition, it will be asked to put $400 million in escrow, one of the people said.

    In 2017, ZTE paid $892 million in civil and criminal penalties, with an additional $300 million suspended unless there were future violations. As part of a new deal, the $300 million would go into escrow in a US bank, along with an extra $100 million, the person said.

    Furthermore, the person said, the US is expected to count $361 million in civil penalties that ZTE paid the Commerce Department last year in its $1.7 billion figure, even though that penalty was already collected as part of the $892 million.

    As part of any new agreement, the sources said, the US wants ZTE to hire a new person to police its compliance. The compliance contractor would provide oversight along with an outside monitor who was retained as part of the March 2017 guilty plea.

    The US also wants its representatives to make site visits to check ZTE’s claims about components without coordinating with Chinese government officials, as required by a non-public agreement between the countries, sources said."

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  5. hmscott

    hmscott Notebook Nobel Laureate

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    Trump administration reaches deal with China’s ZTE
    Fox Business
    Published on Jun 7, 2018
    Fox Business contributor Robert Wolf discusses why he disagrees with the Trump administration’s deal with Chinese company ZTE.


    US and China's ZTE reach a deal

    CNN
    Published on Jun 7, 2018
    Chinese smartphone maker ZTE will pay a fine of $1 billion and bring an American monitoring team on board to resolve a high-profile dispute with the United States.
     
  6. hmscott

    hmscott Notebook Nobel Laureate

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    Senate blocks ZTE deal in rebuke of Trump deal
    The move comes less than a week after the president entered into an agreement with telecom giant.
    by Leigh Ann Caldwell / Jun.11.2018 / 5:59 PM ET
    https://www.nbcnews.com/politics/co...rebuke-trump-deal-n882196?cid=sm_npd_nn_tw_np

    "WASHINGTON — In a major rebuke to President Donald Trump, the Senate has adopted a measure that would block the administration's deal with Chinese telecom giant ZTE, pitting the president against Congress on what many senators say is an issue of national security.

    The Senate's move comes less than a week after the administration struck an agreement with ZTE that would have kept the telecom company engaged in the U.S. market.

    The president’s deal with ZTE would have forced the company to pay a $1 billion penalty, reorganize its company and allow U.S. compliance officers in exchange for being able to sell its products inside the U.S.

    But the bipartisan senate amendment, which has been added to the must-pass National Defense Authorization Act, would essentially kill that agreement by retroactively reinstating financial penalties and continuing the prohibition on ZTE's ability to sell to the U.S. government.

    Sen. Tom Cotton, R-Ark., who is one of the co-sponsors of the measure, said that the amendment would likely put ZTE out of business.

    “ZTE said they couldn’t remain in business, or at least not remain anything other than a cell phone hand-held business, if the denial order from March was in effect. And this would essential put the denial order back into effect,” Cotton told reporters.

    The telecom company is considered by the intelligence community to be a mechanism for espionage by, in part, selling phones in the U.S. that can be tracked and enabled to steal intellectual property.

    The U.S. slapped sanctions on ZTE in 2016, prohibiting the company from doing business in the U.S. for seven years, when it violated U.S. sanctions against Iran and North Korea. The Commerce Department placed additional sanctions on the company after it failed to follow through with its reorganization plan and lied to the U.S. government about it.

    A bipartisan group of senators praised the amendment, saying it protects the U.S.’s national security.

    “The fact that a bipartisan group of senators came together this quickly is a testament to how bad the Trump administration's ZTE deal is and how we will not shy away from holding the president's feet to the fire when it comes to keeping his promise to be tough on China,” Senate Democratic Leader Chuck Schumer said in a statement.

    The amendment was added just as Commerce Secretary Wilbur Ross was on Capitol Hill briefing senators about a component of the president’s ZTE deal. Sen. John Cornyn, R-Texas, left the meeting saying he was supportive of the Senate’s effort.

    The NDAA still has to pass the Senate and the House of Representatives must still agree to the defense bill with the measure included before it can advance. The president would then face a choice: Veto a critical defense bill to save the ZTE deal or allow the administration's deal to collapse. Sen. Cotton said the president won’t veto the bill “because the bill pertains many other critical priorities.”"

    https://www.reddit.com/r/politics/comments/8qf1n9/senate_blocks_zte_deal_in_rebuke_of_trump_deal/

    House panel rebukes Trump, upholds sanctions on Chinese tech megafirm
    By SARAH FERRIS and JOHN HENDEL 05/17/2018 02:44 PM EDT
    https://www.politico.com/story/2018/05/17/house-panel-backs-zte-sanctions-in-rebuke-of-trump-550140
     
    Last edited: Jun 12, 2018
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