China’s foreign ministry said Saturday that the United States needed to stop the huawei suppression because China will strongly defend the legal rights of its companies,
Huawei suppression: The Trump administration moved on Friday to block global chip supplies to blacklisted telecommunications equipment giant Huawei Technologies, fueling fears of Chinese retaliation and hammering shares of U.S. chip-making equipment producers.
China will strongly defend the legal rights of its companies, the foreign ministry said in a statement in response to Reuters’ questions as to whether Beijing would take retaliatory action against the United States.
What’s the problem with Huawei, and why are countries banning the Chinese telecommunications firm.
Chinese telecommunications company Huawei is being scrutinized around the world for concerns that its close ties to the Chinese government are a threat to national security for the United States, Europe and related countries. President Donald Trump has issued an executive order prohibiting any electronic or digital technology that the Secretary of Commerce considers a threat to national security, a measure widely regarded as targeting Huawei.
In January 2019, the United States Department of Justice sued the company and its finance director, Meng Wangzhou, who is also the daughter of the company’s founder, for fraud.
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Huawei, which denies allegations against it, is “the world’s largest telecommunications equipment provider” and has plans to “dominate the market” for the next generation of wireless communications called 5G. But her hopes are threatened by governments around the world, which limit and even prohibit the company’s prospects from operating in some areas.
No Chinese company is completely independent from its government, which reserves the right to require companies to assist in intelligence gathering. Huawei is even more closely associated with the government than many Chinese companies: its founder, Ren Zhengfei, is a former technologist in the People’s Liberation Army. As his company grew, so too did international concerns about whether Huawei equipment can be used to spy on companies and governments around the world.
As early as 2003, the company was accused of stealing intellectual property, including from the U.S. network hardware manufacturer Cisco. The companies settled out of court, but Huawei is accused of stealing other companies’ intellectual property and violating international economic sanctions. Throughout 2018, a wave of activity has raised concerns in the international intelligence community, and pressure on the company – and other Chinese technology companies – has increased.
The situation with these Chinese companies is even more difficult, because the full extent of any relationship between Huawei and the Chinese government is masked. However, it is extremely rare for the US and allied governments to take the kind of steps they have taken to restrict specific companies. These moves suggest that – even without detailed public evidence – there is strong evidence to support the concerns of the intelligence community.
The focus on Huawei ‘s involvement in 5 G systems from many security agencies and countries is also at stake: the next generation of wireless technology is expected to fuel even more connectivity on the “Internet of Things,” linking smart cars, intelligent homes and intelligent cities together.
Millions of devices will be involved, all of which will communicate with one another, build what can become a web monitoring system throughout much of the planet, and increase exponential spying targets. When governments try to make 5 G safe and accessible around the world, the opportunities for Huawei can be restricted by its ties with the Chinese government.
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REF : Reuters.com