U.S. lawmakers propose law that would ban Huawei, ZTE and other Chinese firms from buying U.S. parts
by Alan Friedman / Jan 17, 2019, 3:09 PM
Chinese manufacturers Huawei and ZTE, both already branded as national security threats by the U.S. government, could be banned from purchasing parts made in the U.S. under bills introduced yesterday by a bipartisan group of lawmakers. According to Reuters, under the proposed legislation, chips and other components made in the states would be off limits to Huawei, ZTE and other Chinese telecom firms that fail to comply with U.S. sanctions and export control laws.
The bills were introduced on Wednesday, the same day reports surfaced that federal prosecutors planned on conducting a criminal probe against Huawei. The company allegedly stole technology secrets from U.S. carrier T-Mobile related to a phone testing robot called "Mr. Tappy." T-Mobile won a civil case against Huawei involving the theft, and was awarded $4.8 million.
The bipartisan authors of the bills include Senator Tom Cotton and Representative Mike Gallagher, both Republicans, and Senator Chris Van Hollen and Representative Ruben Gallego, both Democrats. The news that these lawmakers have proposed this legislation set off Chinese government officials. Foreign Ministry spokeswoman Hua Chunying called the U.S. legislation "hysteria," and suggested that U.S. lawmakers block the bills.
The U.S. government fears that Huawei and ZTE use back doors on their handsets and networking equipment to send confidential information to the Chinese government, an accusation denied earlier this week by Huawei founder Ren Zhengfei. Ren's daughter, Meng Wanzhou, is the CFO of Huawei and is presently detained in Canada. She faces extradition to the states after being accused by U.S. authorities of committing bank fraud in order to cover up business conducted between Huawei, Iran and Syria. The latter two countries are under U.S. sanctions. The relationship between the two countries is further strained by the U.S.-China trade war.
Last year, ZTE got a taste of what business would be like if it isn't allowed to buy parts from the U.S. Because the company failed to comply with penalties imposed on it by the U.S. Commerce Department in relation to previous sales to Iran and North Korea, ZTE was placed under an export ban that prevented it from sourcing parts from the U.S. ZTE had to shut down some of its business operations, and eventually reached a settlement that allowed the ban to be lifted. The terms of that deal called for ZTE to pay a $1 billion fine, put $400 million in escrow to cover any future punishments, change its board of directors, and hire new executives.
Posts: 515; Member since: Apr 28, 2014
Go ahead , I mean too much conspiracies around them anyway, true or not... A little slap in the face should do it
posted on Jan 17, 2019, 3:11 PM 0
Posts: 452; Member since: Feb 26, 2015
China should ban all American cars, Tobaco and computers. Lets see who screams foul play then.
posted on Jan 17, 2019, 5:49 PM 4
Posts: 37; Member since: Jan 22, 2018
Your ignorance is astonishing. By American cars I guess you mean the ones that are charged a minimum of 25% import tariff to be sold there? Or the ones built there by the Chinese where the US companies pay to build a plant, can't over more than 49% of it, and give up all the IP and processes in the manufacturing? I doubt all the "American" (wrong again!) computer companies like ASUS, Acer, Lenovo, Sony, Toshiba are too concerned....
posted on Jan 17, 2019, 8:23 PM 4
Posts: 1811; Member since: May 04, 2015
As long as it doesn't include Google software for their international models it's a waste of time. Buy Exynos socs from Samsung, use Mali GPU's (Japanese from Sofbank), Mediatek modems (they're actually very good) etc. This would hurt Qualcomm most in my opinion as few US companies make phone components.
posted on Jan 18, 2019, 1:02 AM 0
Posts: 760; Member since: Jun 27, 2016
The world should get together and ban all those spying arm of US government....Google, Apple, Microsoft, Facebook, Amazon... I am with you ZTE, I am with you Huawei,I am with you China ,I am with everyone who is against U$A. # BIGGEST TERRORIST COUNTRY should receive death penalty.
posted on Jan 17, 2019, 3:30 PM 10
Posts: 1615; Member since: Feb 11, 2013
Damn, you are trying real hard to get your social credit back up in China XD
posted on Jan 17, 2019, 5:46 PM 7
Posts: 3233; Member since: Jul 22, 2014
"I am with everyone who is against U$A." Syria, Qatar and Iran are against U.S. and freedom to choose your religion and opinion, are you still with them? Goodluck if you stay in china and try to visit google, phonearena, and other american websites again.
posted on Jan 17, 2019, 10:32 PM 3
Posts: 730; Member since: Mar 22, 2015
Lol even with the ban Huawei can still find a way to get their hands on the parts they want
posted on Jan 17, 2019, 4:02 PM 3
Posts: 118; Member since: Jul 17, 2017
You mean steal technology? :)
posted on Jan 17, 2019, 9:42 PM 1
Posts: 621; Member since: Aug 29, 2014
All of this is bad business and further alienating the US. They really need to stop this foolishness because this is all happening out of fear. Huawei and ZTE been in the US for years and no one said anything until the past 2 years.
posted on Jan 17, 2019, 4:03 PM 4
Posts: 82; Member since: Oct 12, 2018
In less than 2 years democrat wins the elections. Everything goes back to normal. Mark my words.
posted on Jan 17, 2019, 4:32 PM 5
Posts: 2255; Member since: Aug 01, 2015
From 2013 under Obama(a democrat): https://www.reuters.com/articl
Here's and excerpt: "In October 2012, the U.S. House of Representatives’ Intelligence Committee urged American firms to stop doing business with Huawei and ZTE Corp., warning that China could use equipment made by the companies to spy on certain communications and threaten vital systems through computerized links"
I'm not in agreement with Trump, but this business with Huawei goes farther back then his administration.
posted on Jan 17, 2019, 7:03 PM 2
Posts: 9; Member since: Jan 11, 2019
"The terms of that deal called for ZTE to pay a $1 billion fine". In the end everything back again to money. I believe if Huawei "pay" some money then US senator Will said "everything is clear now, don't do that again" lol
posted on Jan 17, 2019, 4:52 PM 0
Posts: 496; Member since: May 03, 2014
American Parts !!!!!! All American products are made in China. And most of Smartphone hardware are not American products. They are mostly Japanese, Korean and Chinese. Even iphones hardly have any American Parts in them.
posted on Jan 17, 2019, 6:53 PM 4
Posts: 416; Member since: Sep 25, 2012
It's very hypocritical for countries calling others spies when they're doing it themselves. We all know Google, Apple, Facebook, Amazon, Twitter, governments etc are spying on us I don't doubt China does a large share of spying but so does most of the western world to gain unfair advantages but the most dangerous spying is when these huge corporations have nearly every soul on earth.
posted on Jan 17, 2019, 7:58 PM 1
Posts: 37; Member since: Jan 22, 2018
You are almost certainly correct. The difference is in the US everyone has the freedom to call them out on it. Apple, for all its shortcomings, is by far the closest thing to an advocate for privacy any of these companies are. They routinely publish stats on the number of requests made by law enforcement and govm'ts. The founder of Huawei actually had the nerve to say that since founded in 1987, in one of the largest, repressive communist regimes, that they had never been asked by the gov't anything inappropriate. Ya, right! They (Chinese gvmt) are bad actors, plain and simple, Ask ANYONE involved in international business or who has IP at risk. .
posted on Jan 17, 2019, 8:32 PM 5
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