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
Related Stories
Original URL: http://www.computerworld.com/article/3096950/mobile-wireless/ztes-99-zmax-pro-smartphone-packs-in-top-line-features.html
ZTE's $99 ZMax Pro packs in some of the latest smartphone technologies, something you wouldn't expect in a low-priced handset.
The smartphone has a 6-in. screen and is available only through MetroPCS in the U.S. It weighs about 175 grams and is 8.9 millimeters thick.
It has some top-line features found in the latest smartphones, like a USB Type-C port. It also runs on the latest Android OS 6.0 code-named Marshmallow.
The Gorilla Glass 3 screen shows images at a full HD resolution. The handset has 32GB of internal storage and a micro-SD card for expandable storage. That's a lot of storage for a handset under $100.
The handset is comparable to the new fourth-generation Moto G handset, which is now available unlocked on Amazon.com for $199.99 for a 16GB model. The Zmax Pro has a 13-megapixel rear camera and 5-megapixel front camera, along with an eight-core Snapdragon 617 processor, all of which are also packaged in the Moto G.
[...] However, the smartphone lacks some other features. It includes 802.11 b/g/n Wi-Fi, not the latest 802.11ac, which offers a wider range and faster speeds.
-- submitted from IRC
Also covered at: cnet.
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?
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
Banning Chinese network gear is a really bad idea, small ISPs tell FCC
The Federal Communications Commission's proposed ban on Huawei and ZTE gear in government-funded projects will hurt small Internet providers' efforts to deploy broadband, according to a lobby group for rural ISPs.
As previously reported, FCC Chairman Ajit Pai's proposal would prevent Universal Service Fund (USF) money from being used to buy equipment or services from companies that "pos[e] a national security risk." If the FCC approves the proposal, the ban is most likely to prevent the purchase of equipment from Chinese technology vendors Huawei and ZTE. But it could also affect other companies and technology from other countries, depending on how the FCC determines which companies pose national security threats.
ISPs who use federal money to build or expand broadband service would end up with fewer options for buying network gear. This would "irreparably damage broadband networks (and limit future deployment) in many rural and remote areas throughout the country," the Rural Wireless Association (RWA) told the FCC in a filing yesterday.
The RWA represents rural wireless Internet providers that offer home or mobile Internet service and have fewer than 100,000 subscribers. A recent Wall Street Journal report said that small ISPs rely on Huawei gear more than large telcos do.
Previously: U.S. Lawmakers Urge AT&T to Cut Ties With Huawei
U.S. Government Reportedly Wants to Build a 5G Network to Thwart Chinese Spying
U.S. Intelligence Agency Heads Warn Against Using Huawei and ZTE Products
The U.S. Intelligence Community's Demonization of Huawei Remains Highly Hypocritical
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
(Score: 1, Funny) by Anonymous Coward on Friday April 20 2018, @04:52PM
But they aren't done with their investigation! Just because they found many occurrences of our breaking the settlement agreement doesn't mean we should receive the harshest penalty! We haven't even had a chance to hire a lobbying firm or make political contributions yet!
(Score: 2) by Fnord666 on Friday April 20 2018, @04:53PM
(Score: 3, Insightful) by bob_super on Friday April 20 2018, @05:32PM (3 children)
Whatever happened to letting the market sort things out?
Less than ten years from now, when the Chinese chip manufacturers are done overtaking the US ones, funded by billions from Huawei and ZTE, Broadcom, Qualcomm and co will cry a river about jobs and competition.
(Score: 3, Insightful) by captain normal on Friday April 20 2018, @06:21PM (1 child)
I doubt that Trump and his closest advisers (at least the ones that are left) have even heard of Sun Tuz, much less have studied "The Art War". Our current administration has jumped into a fray without fully studying the situation and having a clear objective. Unless there is a change of thinking at the top, the Chinese will wind up undercutting our businesses and literally owning the U.S. This isn't a game that the school yard bully can command.
The Musk/Trump interview appears to have been hacked, but not a DDOS hack...more like A Distributed Denial of Reality.
(Score: 0) by Anonymous Coward on Monday April 23 2018, @06:09PM
He's writing the Art of Chaos.
(Score: 2, Insightful) by khallow on Friday April 20 2018, @07:26PM
The Chinese government got involved. According to Wikipedia [wikipedia.org], 5 of the 9 directors that oversee the company are appointed by state-owned enterprises. Sounds like ZTE was violating trade sanctions on North Korea, perhaps at the behest of someone in the Chinese government.
Funny how the market is supposed to work in a situation where it is being actively broken.
(Score: 0) by Anonymous Coward on Friday April 20 2018, @05:55PM (3 children)
It's time to establish that smartphones are protected under the first amendment as speeh enabling devices (just like printing presses).
And software source code is speech, how can you ban the sale of that? National security? Ahem. BULLSHIT.
While radio usage might not be, as long as they accept a standard sim card I don't see the problem.
I'd be willing to litigate this pro se if noone else would, but I'd rather have a large group plus lawyers.
We can't let this continue.
(Score: 0) by Anonymous Coward on Friday April 20 2018, @06:04PM
I would personally like to see cellular modems designed with a WORM 'flash log' for the cellular modem, have it keep a timestamp when the clock is properly configured, a hash of the image uploaded, and maybe some other metadata to help determine if it was an authorized or modified firmware image. Then require all cellular firmware to be open sourced, which will allow HAMs and programmers to audit the code and provide patches to fix protocol flaws or radio transmission flaws in the source code, which the FCC, CE, etc can then sign periodically for verified images. The benefit being more eyes to ensure security, more transparency which is good for everyone except the intelligence community, and the ability for people with unsupported devices to find an updated and authenticated image for their modem based on improvements in the common codebase for that cellular modem platform. The only issues that could derail this is non-standard transmitter designs, or non-standard antenna designs, and those could both be worked around similiarly to the ARM BSP tables, provide a template image that enumerates the hardware geometry such that the operating system/modem firmware can make the adjustments need to keep signals within the expected transmission powers and frequencies.
(Score: 0) by Anonymous Coward on Friday April 20 2018, @07:05PM
Now this is an interesting thought.
Absolutely people use smartphones for reading the speech of others, and posting their own, but they are multi-function devices (really just miniature general purpose computers at this point). The argument will likely go that if we protect them like a printing press, we are affecting all those other functions that don't deserve this level of protection.
Probably the best starting question is - Are computers extended the same protection you mention similar to printing presses?
(If so then this should be a slam dunk. )
(Score: 0) by Anonymous Coward on Saturday April 21 2018, @01:15AM
Fuck you. Don't moderate that as "Troll" or "Flamebait" because I posted from a smartphone (which should be protected under the first amendment as speeh enabling device.