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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    US begins lifting ban on ZTE
    So it can update phones and other equipment
    By Jacob Kastrenakes@jake_k Jul 3, 2018, 4:34pm EDT
    https://www.theverge.com/2018/7/3/17532508/zte-ban-us-temporarily-lifts-security-updates

    "The US Commerce Department has temporarily lifted a portion of the ban on ZTE that all-but shut down the company almost three months ago. After paying a $1 billion fine, ZTE has been authorized by the United States to continue supporting much of its already deployed equipment and consumer devices. This largely seems designed to keep infrastructure up and running and allow ZTE to deliver security patches to its phones (and other products).

    The eased restrictions are temporary, only lasting until August 1st. It’s not stated what will happen after that point, but Bloomberg reports that ZTE is expected to be in full compliance with the agreement it made with the US government by then, meaning the ban may be fully lifted. ZTE initially received the ban in April as repercussion for failing to follow through with penalties it received for violating US sanctions to Iran and North Korea...."
     
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  2. hmscott

    hmscott Notebook Nobel Laureate

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    US lifts order against China's ZTE
    13 July 2018
    https://www.bbc.com/news/business-44825878

    "The US has lifted an order that blocked Chinese tech giant ZTE from doing business with US companies, forcing the firm to halt major operations.

    US President Donald Trump had intervened to end the ban, which was imposed in April and tied to ZTE violations of US sanctions against Iran and North Korea.

    Instead the US said ZTE would be fined and forced to shake up its management.

    The US Commerce Department said the firm had now complied with all steps.

    ZTE paid a $1bn penalty last month and has now placed an additional $400m in a holding account against further violations, the Commerce Department said on Friday.

    "While we lifted the ban on ZTE, the Department will remain vigilant as we closely monitor ZTE's actions to ensure compliance with all US laws and regulations," US Commerce Secretary Wilbur Ross said.

    ZTE, China's second largest telecoms manufacturer, depends on American-made components for the production of its handsets.

    It suspended major operations this spring after the US imposed the ban. The US said the firm had lied about punishing employees involved in violating US sanctions against North Korea and Iran.

    President Trump asked the US Commerce Department to reconsider the ban in May at the request of Chinese President Xi Jinping.

    The decision was controversial in the US. Some politicians in Congress are trying to take action to reinstate the original penalty, citing national security concerns about the company.

    "ZTE should be put out of business," Senator Marco Rubio, a Republican from Florida, said on Friday.

    "We must put American jobs and national security first, which is why I have urged NDAA conferees to ensure the bipartisan provision to reinstate penalties against ZTE is included in the final bill."

    The US has said the new penalty is significant. ZTE also paid the US almost $900m in 2017 for the sanctions violations.

    The ZTE saga comes at a tense time in US-China relations.

    The US government on 6 July placed tariffs on $34bn of Chinese goods, prompting China to levy tariffs of equal size on US imports.

    The Trump White House escalated the dispute this week by listing another $200bn worth of Chinese products it plans to hit with tariffs as soon as September."
     
  3. kojack

    kojack Notebook Deity

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    I can’t wait to get my p20 pro just to make trumpanzees squirm. :D
     
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  4. hmscott

    hmscott Notebook Nobel Laureate

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    Speak slowly and clearly so that their English to Chinese translators can keep up. ;)

    Besides, IDK why people keep getting this wrong... Trump isn't the one accusing the Chinese of spying, he's the one trying to get them free to do business by lifting the sanctions and ban.

    It's the US Intelligence and Military organizations - you know the guys that do the spying in the other direction, they are the ones accusing the Chinese of aiding enemies and spying on US citizens. :)
     
    Last edited: Jul 15, 2018 at 9:59 AM
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  5. hmscott

    hmscott Notebook Nobel Laureate

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    These warnings have not been lifted or changed:

    Don’t use Huawei phones, say heads of FBI, CIA, and NSA
    The US intelligence community is still worried about Chinese tech giants’ government ties

    By James Vincent@jjvincent Feb 14, 2018, 5:05am EST
    https://www.theverge.com/2018/2/14/17011246/huawei-phones-safe-us-intelligence-chief-fears

    "The heads of six major US intelligence agencies have warned that American citizens shouldn’t use products and services made by Chinese tech giants Huawei and ZTE. According to a report from CNBC, the intelligence chiefs made the recommendation during a Senate Intelligence Committee hearing on Tuesday. The group included the heads of the FBI, the CIA, the NSA, and the director of national intelligence.

    During his testimony, FBI Director Chris Wray said the government was “deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don’t share our values to gain positions of power inside our telecommunications networks.” He added that this would provide “the capacity to maliciously modify or steal information. And it provides the capacity to conduct undetected espionage.”

    These warnings are nothing new. The US intelligence community has long been wary of Huawei, which was founded by a former engineer in China’s People’s Liberation Army and has been described by US politicians as “effectively an arm of the Chinese government.” This caution led to a ban on Huawei bidding for US government contracts in 2014, and it’s now causing problems for the company’s push into consumer electronics.

    Although Huawei started life as a telecoms firm, creating hardware for communications infrastructure, the company’s smartphones have proved incredibly successful in recent years. Last September, it even surpassed Apple as the world’s second biggest smartphone maker, behind Samsung.

    But the company has never been able to make inroads in the lucrative American market, a failure which is in part due to hostility from the US government. Last month, Huawei planned to launch its new Mate 10 Pro flagship in the US through AT&T, but the carrier pulled out of the deal at the last minute, reportedly due to political pressure. The decision prompted Huawei’s CEO Richard Yu to go off-script during a speech at CES, describing the move as a “big loss” for the company, but a bigger loss for consumers.

    Huawei is still trying to sell the Mate 10 Pro unlocked in the US, but this effort seems to have pushed the company to desperate measures — including getting users to write fake reviews for the handset.

    US lawmakers are currently considering a bill that would ban government employees from using Huawei and ZTE phones altogether. During Tuesday’s hearing, Republican Senator Richard Burr, chairman of the Senate Intelligence Committee, said: “The focus of my concern today is China, and specifically Chinese telecoms like Huawei and ZTE, that are widely understood to have extraordinary ties to the Chinese government.”

    In response to these comments, a spokesperson for Huawei told CNBC:”Huawei is aware of a range of U.S. government activities seemingly aimed at inhibiting Huawei’s business in the U.S. market. Huawei is trusted by governments and customers in 170 countries worldwide and poses no greater cybersecurity risk than any ICT vendor, sharing as we do common global supply chains and production capabilities.”

    ZTE also issued a statement on the comments, saying: “As a publicly traded company, we are committed to adhering to all applicable laws and regulations of the United States, work with carriers to pass strict testing protocols, and adhere to the highest business standards. [...] ZTE takes cybersecurity and privacy seriously and remains a trusted partner to our US suppliers, US customers and the people who use our [...] products.”

    Update February 15th: Updated to include comment from ZTE"
     
    Last edited: Jul 15, 2018 at 11:23 AM
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  6. hmscott

    hmscott Notebook Nobel Laureate

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    Warner, Colleagues Urge NDAA Conferees to Include ZTE Ban
    Jul 13 2018
    https://www.warner.senate.gov/publi...eagues-urge-ndaa-conferees-to-include-zte-ban

    "Jul 13 2018

    WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, joined Senate colleagues in urging the Chairmen of the Senate and House Armed Services Committees to include a Senate-passed amendment cosponsored by Sen. Warner that would reinstate penalties against ZTE in their upcoming NDAA FY2019 Conference Report.

    Earlier this year, intelligence leaders testified before the Senate Intelligence Committee warning that ZTE, Huawei, and other Chinese state-directed telecommunications companies have the capacity for espionage and intellectual property theft, posing clear threats to the national security, people, and economy of the United States. This week, President Trump’s Commerce Department announced an agreement to lift the ban preventing Chinese telecom giant ZTE from doing business with American suppliers.

    Additionally, Senators urged the conferees to include the reforms to the Committee on Foreign Investment in the United States (CFIUS), which were a part of the recently passed Senate NDAA bill. These reforms, also known as the Foreign Investment Risk Review Modernization Act (FIRRMA), would ensure that foreign investments in the U.S. do not pose a national security risk.

    Sen. Warner, a former technology executive, has long expressed concern that ZTE poses a significant threat to our national security. He recently wrote to the administration urging President Trump to re-consider a deal with the China-based company.

    The text of the letter to NDAA conferees can be found here and below:

    Dear Chairmen McCain and Thornberry, and Ranking Members Reed and Smith:

    We write to express our strong support for measures in the Senate-passed Fiscal Year 2019 National Defense Authorization Act (FY 2019 NDAA) that would reinstate U.S. government penalties against ZTE, a Chinese state-directed telecommunications company, and modernize the Committee on Foreign Investment in the United States (CFIUS). As you begin deliberations over the final version of the FY 2019 NDAA, we request that you include these two measures.

    Section 6702: Prohibition on Modification of Civil Penalties under Export Control and Sanctions Laws and Prohibition on Certain Telecommunications Equipment.

    We strongly oppose the June 2018 deal with ZTE negotiated by the Commerce Department’s Bureau of Industry and Security (BIS) to lift the seven-year ban against the export of U.S. parts and components to ZTE. BIS imposed this seven-year ban and other penalties against ZTE in April 2018 in response to its numerous violations of U.S. export controls and sanctions laws.

    We also note that our nation’s six top intelligence leaders testified before the Senate Intelligence Committee in February 2018 about their concern that ZTE, Huawei, and other Chinese state-directed telecommunications companies are beholden to the Chinese government and Communist Party, which provides the capacity for espionage and intellectual property theft, and therefore poses clear threats to the national security, people, and economy of the United States.

    As you prepare the Conference Report, we therefore urge you to retain—and further strengthen—Section 6702 of the Senate-passed FY 2019 NDAA, which would not only reinstate the April 2018 penalties against ZTE and prohibit the modification of any penalties against a Chinese telecommunications firm unless certain conditions are met, but also prohibit the U.S. government from using or procuring equipment from, or entering into a contract with ZTE or Huawei.

    Title XVII: Foreign Investment Risk Review Modernization Act of 2018

    We also thank you for your work protecting our national security and intellectual property by ensuring that foreign countries are not engaged in illicit behavior when investing in the United States.

    As you are aware, the Senate version of the FY 2019 NDAA includes important reforms to the Committee on Foreign Investment in the United States that were part of the Foreign Investment Risk Review Modernization Act (FIRRMA). Those reforms are vital to protecting our national security and preventing intellectual property theft by foreign countries—including the People’s Republic of China.

    As you negotiate a conference report for the 2019 NDAA, we urge you to include the Senate-passed CFIUS reforms and ensure that the final language fully addresses our national security and competitiveness concerns. We believe that efforts to weaken the robust protections in the FIRRMA will embolden our adversaries and present threats to our national security.

    We thank you for your leadership, and we appreciate your consideration.

    Sincerely..."
     
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