Huawei's consumer business group CEO Richard Yu is not giving up on selling smartphones and other devices in the U.S., despite warnings against the company made by U.S. government officials and a lack of support from retailers. The company recently released a new flagship smartphone, the Huawei P20 Pro:
"We are committed to the US market and to earning the trust of US consumers by staying focused on delivering world-class products and innovation," Yu told CNET in an email. "We would never compromise that trust."
The comments mark a defiant response to the vague warnings made by US officials that have effectively crippled Huawei's ability to get its phones in front of consumers. In January, AT&T pulled out of a landmark plan to sell the Mate 10 Pro, an important high-end Huawei phone. Verizon reportedly also scuttled a deal to carry the device based on political pressure. CNET was also first to report that Best Buy, the US' largest electronics retailer, dropped Huawei phones from its roster.
[...] "The security risk concerns are based on groundless suspicions and are quite frankly unfair," Yu said. "We welcome an open and transparent discussion if it is based on facts." [...] "We work with 46 of the 50 global operators," Yu told CNET, "And have maintained a very strong security record because security is one of our top priorities." [...] "Even without the United States market, we'll be No. 1 in the world," Yu said earlier this week.
Huawei reported a 27% jump in profits in 2017, despite its struggle to establish itself in the U.S. market.
See also: Huawei P20 launch highlights the risks of U.S. paranoia over Chinese security
Huawei's P20 Pro is a hugely promising phone that will upset Americans
Previously: U.S. Lawmakers Urge AT&T to Cut Ties With Huawei
Verizon Cancels Plans to Sell Huawei Phone Due to U.S. Government Pressure
The U.S. Intelligence Community's Demonization of Huawei Remains Highly Hypocritical
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Exclusive: U.S. lawmakers urge AT&T to cut commercial ties with Huawei - sources
U.S. lawmakers are urging AT&T Inc, the No. 2 wireless carrier, to cut commercial ties to Chinese phone maker Huawei Technologies Co Ltd and oppose plans by telecom operator China Mobile Ltd to enter the U.S. market because of national security concerns, two congressional aides said.
[...] Earlier this month, AT&T was forced to scrap a plan to offer its customers Huawei handsets after some members of Congress lobbied against the idea with federal regulators, sources told Reuters.
The U.S. government has also blocked a string of Chinese acquisitions over national security concerns, including Ant Financial's proposed purchase of U.S. money transfer company MoneyGram International Inc.
The lawmakers are also advising U.S. firms that if they have ties to Huawei or China Mobile, it could hamper their ability to do business with the U.S. government, one aide said, requesting anonymity because they were not authorized to speak publicly.
Related: NSA Spied on Chinese Government and Huawei
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Verizon is following AT&T's lead and cancelling plans to sell Huawei's Mate 10 Pro smartphone that boasts support for the upcoming super-fast 5G network, according to a Bloomberg report on Tuesday.
Verizon's decision is reportedly based on political pressure from the US government, which is seeing a reinvigorated fear of spying from China as US regulators urged an investigation of Chinese-made telecom equipment in December 2017. It's the same reason AT&T dropped its deal with Huawei to offer the Mate 10 Pro on January 8.
Huawei's Mate 10 Pro with 5G networking capabilities seemingly falls under the category of Chinese-made telecom equipment under investigation, as the company has been accused of having ties with the Chinese government.
Previously: U.S. Lawmakers Urge AT&T to Cut Ties With Huawei
Related: U.S. Government Reportedly Wants to Build a 5G Network to Thwart Chinese Spying
Intelligence agency heads have warned against using Huawei and ZTE products and services:
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 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.
Verizon and AT&T recently cancelled plans to sell Huawei's Mate 10 Pro smartphone.
Don't use a Huawei phone because it's too Chinese. Don't use an Apple phone because strong encryption is not "responsible encryption". Which phone is just right for the FBI?
Previously: U.S. Lawmakers Urge AT&T to Cut Ties With Huawei
Related: FBI Director Christopher Wray Keeps War on Encryption Alive
U.S. Government Reportedly Wants to Build a 5G Network to Thwart Chinese Spying
Submitted via IRC for Runaway1956
The U.S. Intel Community's Demonization of Huawei Remains Highly Hypocritical
We've noted for some time how Chinese hardware vendor Huawei has been consistently accused of spying on American citizens without any substantive, public evidence. You might recall that these accusations flared up several years ago, resulting in numerous investigations that culminated in no hard evidence whatsoever to support the allegations. We're not talking about superficial inquiries, we're talking about eighteen months, in-depth reviews by people with every interest in exposing them. One anonymous insider put it this way in the wake of the last bout of hysteria surrounding the company:
We knew certain parts of government really wanted" evidence of active spying, said one of the people, who requested anonymity. "We would have found it if it were there.
[...] This week, hysteria concerning Huawei again reached a fevered pitch, as U.S. intelligence chiefs, testifying before Congress over Russian hacking and disinformation concerns, again proclaimed that Huawei was spying on American citizens and their products most assuredly should not be used:
At the hearing, FBI Director Chris Wray testified, "We're 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." Purchasing Huawei or ZTE products, Wray added, "provides the capacity to maliciously modify or steal information. And it provides the capacity to conduct undetected espionage.
Which values would those be, exactly? Would it be the values, as leaked Edward Snowden docs revealed, that resulted in the NSA hacking into Huawei, stealing source code, then attempting to plant its own backdoors into Huawei products? Or perhaps it's the values inherent in working closely with companies like AT&T to hoover up every shred of data that touches the AT&T network and share it with the intelligence community? Perhaps it's the values inherent in trying to demonize encryption, by proxy weakening security for everyone?
Best Buy will cut ties with Huawei and stop selling Huawei products over the next few weeks. Huawei's smartphones, such as its new flagship Mate 10 Pro, are sold in the U.S. by retailers, but no U.S. wireless service provider will sell them. Now the largest electronics retailer in the U.S. is calling it quits:
The move, after similar actions from U.S. carriers including AT&T Inc, comes as U.S. scrutiny of Chinese tech firms grows amid simmering tensions over U.S.-China trade and concerns of security.
[...] Earlier this year, AT&T was forced to scrap a plan to offer Huawei handsets after some members of Congress lobbied against the idea with federal regulators, sources told Reuters. Verizon Communications Inc also ended its plans to sell Huawei phones last year, according to media reports.
Last month two Republican Senators introduced legislation that would block the U.S. government from buying or leasing telecommunications equipment from Huawei or Chinese peer ZTE Corp, citing concern the firms would use their access to spy on U.S. officials.
Previously: U.S. Lawmakers Urge AT&T to Cut Ties With Huawei
Verizon Cancels Plans to Sell Huawei Phone Due to U.S. Government Pressure
U.S. Intelligence Agency Heads Warn Against Using Huawei and ZTE Products
The U.S. Intelligence Community's Demonization of Huawei Remains Highly Hypocritical
Huawei Declares Ambition to Be No.1 After Dethroning Apple
Huawei Technologies Co., which just edged past Apple Inc. to become the world's second-largest smartphone maker, wants to be top of the heap before the end of 2019.
The Chinese giant shipped more than 95 million phones in the first six months, up about 30 percent from a year earlier. Consumer division chief Richard Yu on Friday said he wants Huawei to be No. 1 in smartphones by the fourth quarter of next year, with a market share of more than 20 percent -- despite acknowledging its virtual absence in a pivotal U.S. market.
Huawei this year overcame a global slump by grabbing sales from Apple and current leader Samsung Electronics Co. The fast-growing consumer division has helped Huawei, the leader in global telecommunications equipment, get past lackluster demand from carriers globally. Despite barely making a dent in the U.S., it's managed to build a strong presence in $600-plus phones in markets from Europe to Africa, which in turn allowed it to break Apple's and Samsung's years-long stranglehold on the global market.
Also at WSJ, Business Insider, and CNBC.
See also: Global tablet sales decline, with only Apple and Huawei showing growth
Related: Huawei CEO Still Committed to the U.S. Market
Rural Wireless Association Opposes U.S. Government Ban on Huawei and ZTE Equipment
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Huawei may have a backup OS in case it has to drop Android
It'd be hard to blame Huawei executives if they're feeling very nervous lately. The US has created havoc for ZTE by renewing an export ban over trade violations, potentially depriving it of its Android license and leaving it without a platform. How would Huawei avoid a similar fate? Simple: it would use its own operating system instead. South China Morning Post sources have claimed that Huawei has been developing its own mobile operating system (there are reportedly tablet and PC equivalents) ever since it and ZTE faced an American investigation in 2012. It's considered an investment for "worst-case scenarios," the insiders said.
The company hasn't released this OS because it isn't up to Android's level of quality and app support, the sources added.
Huawei hasn't confirmed or denied the software's existence, saying only that it "has no plans" to launch an in-house OS in the "foreseeable future" -- if there is one, there's no rush to use it. There was a purported meeting leak in 2012 that referenced a new platform.
See also: ZTE and the Unknown Unknowns
Related: U.S. Intelligence Agency Heads Warn Against Using Huawei and ZTE Products
Huawei CEO Still Committed to the U.S. Market
Chinese Tech Giant on Brink of Collapse in New U.S. Cold War (archive)
Not Apple. Not Huawei. The first casualty of the high-tech cold war between the United States and China might be the biggest electronics maker you've never heard of.
The Chinese firm ZTE said on Wednesday [PDF] it had ceased "major operating activities" after the Trump administration banned the company last month from using components made in the United States. With manufacturing halted at the ZTE plant in Shenzhen, factory workers have been getting called in for training sessions every other day or so — a snooze, they say. The rest of the time, they loaf around in nearby dorms.
Trading in the company's shares has been suspended for weeks. Staff members have been instructed, in new guidelines reviewed by The New York Times, to reassure anxious clients, while being sure to avoid discussing with them the American technology from which the firm is cut off for the next seven years.
One of China's most internationally successful technology suppliers, with about $17 billion in annual revenue, ZTE is facing a death sentence. The Commerce Department has blocked its access to American-made components until 2025, saying the company failed to punish employees who violated trade controls against Iran and North Korea.
Update: President Trump has vowed to get ZTE "back into business, fast" (archive):
President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done! — Donald J. Trump (@realDonaldTrump) May 13, 2018
Also at Fortune, WSJ, USAToday and CNN.
Previously: U.S. Intelligence Agency Heads Warn Against Using Huawei and ZTE Products
Huawei CEO Still Committed to the U.S. Market
Rural Wireless Association Opposes U.S. Government Ban on Huawei and ZTE Equipment
ZTE Responds to U.S. Ban on Sales by American Companies to ZTE
The Sydney Morning Herald reports that Australia's government on Thursday banned major Chinese telecoms firm Huawei Technologies from supplying equipment for its planned 5G mobile network, citing risks of foreign interference.
The 1000-word statement did not mention China, or the Chinese telecommunications equipment giants Huawei or ZTE. Nor did it plainly state the bombshell decision that they are to be banned from building Australia's new telecommunications network.
The fifth generation mobile telecoms system, or 5G, is a big deal. It's to be the key architecture of an increasingly wired nation, connecting power and water systems, medical and driverless technologies, systems in homes and hospitals, factories and farms, enabling the so-called "internet of things".
If you're getting the impression that the government didn't want to draw attention to the announcement, you're right. After months of careful scrutiny, the cabinet's national security committee had made the decision a week earlier. Then sat on it.
President Trump yesterday signed a defense funding bill that included a sweeping ban on the US government using technology supplied by Chinese telecommunications giants ZTE and Huawei. The bill also includes a narrower ban on using surveillance gear provided by Chinese companies Hytera Communications, Hangzhou Hikvision Digital Technology, or Dahua Technology for national security applications.
The legislation directs federal agencies to stop using the Chinese-made hardware within two years. If that proves impractical, an agency can apply for a waiver to permit a longer phase-out period.
Obviously, being banned from selling to the US government is a significant blow to these companies. But overall the bill actually represents something of a reprieve for ZTE. Back in June, the US Senate passed a version of the bill that would have re-imposed an export ban that would have been a de facto death sentence for ZTE because ZTE is heavily dependent on components like Qualcomm chips and Google's Android operating system.
Previously: Verizon Cancels Plans to Sell Huawei Phone Due to U.S. Government Pressure
U.S. Intelligence Agency Heads Warn Against Using Huawei and ZTE Products
The U.S. Intelligence Community's Demonization of Huawei Remains Highly Hypocritical
Huawei CEO Still Committed to the U.S. Market
Rural Wireless Association Opposes U.S. Government Ban on Huawei and ZTE Equipment
ZTE Suspends Operations Due to U.S. Ban (UPDATED)
China's ZTE slams U.S. ban, says company's survival at risk
China's ZTE Corp said on Friday that a U.S. ban on the sale of parts and software to the company was unfair and threatens its survival, and vowed to safeguard its interests through all legal means.
The United States this week imposed a ban on sales by American companies to ZTE for seven years, saying the Chinese company had broken a settlement agreement with repeated false statements - a move that threatens to cut off its supply chain.
"It is unacceptable that BIS insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts," ZTE said in its first response since the ban was announced, referring to the U.S. Commerce Department's Bureau of Industry and Security. "The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of U.S. companies," ZTE said in a statement.
ZTE said it regards compliance as the cornerstone of its strategy, adding it invested $50 million in export control compliance projects in 2017 and plans to invest more this year. A senior U.S. Commerce Department official told Reuters earlier this week that it is unlikely to lift the ban.
Also at WSJ.
Previously: U.S. Intelligence Agency Heads Warn Against Using Huawei and ZTE Products
The U.S. Intelligence Community's Demonization of Huawei Remains Highly Hypocritical
Huawei CEO Still Committed to the U.S. Market
Rural Wireless Association Opposes U.S. Government Ban on Huawei and ZTE Equipment
Related: ZTE's $99 Zmax Pro Smartphone Packs in Top-Line Features
(Score: 2) by MostCynical on Saturday March 31 2018, @12:32PM (4 children)
sales are easy - marketing plus internet (works for Tesla)
Support.. Unless they have some express post deal (your phone back in 48/72 hours), people might be wary..
Although, how many phones do people break, repairably, and actually take back to the manufacturer? Most go back to place of sale, and may not get repaired onsite anyway..
All about perception.
Good, reliable phone that phones home to China, or good, reliable phone that phones home to the US (possibly via a five eyese partner)?
"I guess once you start doubting, there's no end to it." -Batou, Ghost in the Shell: Stand Alone Complex
(Score: 3, Interesting) by seeprime on Saturday March 31 2018, @02:03PM (1 child)
They could build a facility in the US to produce the phones. That would keep political pressure off of them, and win some new customers.
(Score: 0) by Anonymous Coward on Saturday March 31 2018, @10:29PM
Like China demands our companies do? Manufacture in country, possibly having to take in a local partner?
Never, people may have to spend a dollar more for something coming off the line in the US.
(Score: 0) by Anonymous Coward on Saturday March 31 2018, @07:34PM (1 child)
If you're not living in China nor trying to overthrow the Chinese Gov, your phone sending data to China isn't going to be a huge problem (unless it makes stuff laggy, if you're going to spy on my keystrokes and passwords with stuff like Huawei's Swype at least please make it not so laggy ;) ).
In contrast the US Gov has shown that they might bother to make your life miserable even if you're not living in the USA nor trying to overthrow the US Gov.
Look what happened to Kim Dotcom.
(Score: 2) by frojack on Saturday March 31 2018, @09:18PM
That's a pretty naive assertion, especially in light of the Facebook Cambridge Analytica fiasco currently raging in the press.
Imagine handing a foreign power all the data on your phone, all your contacts, text messages, pictures, links you've followed, all siphoned off your phone onto any wifi when you thought your phone was sleeping. Do you really believe only big-data companies like Google, Microsoft, and Amazon would be able to data mine this level of stuff?
OTOH, maybe the real reason is something like:
(If this is the issue, why doesn't Huawei come out and say exactly that?)
Of course, it is also possible the US is not worried about data being sent to China, but what China could decide to send to the US. Viruses, ping floods, cell-network take-downs, what ever. Everyone knows that your cell phone goes dead in any real national emergency, but 90% (number pulled from ass) of those phones jump to wifi as soon as that happens. An even more powerful platform for an insider attack.
You have to ask yourself Why would the US be worried about only a couple companies in China, and not all the others that manufacture in China.
Is is political gamesmanship, or is there actual intelligence of a threat? If so, why hasn't the US documented it? Its not THAT hard to monitor connections originating or terminating on a phone if you control the upstream.
No, you are mistaken. I've always had this sig.
(Score: 3, Insightful) by Anonymous Coward on Saturday March 31 2018, @02:19PM (2 children)
What Huawei's CEO didn't say, but is implied, is "Our government will not accept our failure to install millions of backdoored devices into the American internet and networking infrastructure."
(Score: 4, Insightful) by Acabatag on Saturday March 31 2018, @03:17PM (1 child)
What the NSA Said:
We will not accept a device in the US market that we are not allowed to maintain 'hooks' within for surveillance purposes.
(Score: 0) by fakefuck39 on Monday April 02 2018, @11:06PM
what acabatag said:
blah blah blah made up shit blah blah blah
people like acabatag are pretty much religious christian idiots who are too dumb to keep informed, so they make shit up to sound like they know something, which only works on other idiots like themselves. and people like me - we'll we like laughing at morons.