Why Huawei’s 5G technology is seen as a threat by the US


Reuters pic.

The term 5G stands for a fifth generation — to succeed the current fourth generation of mobile connectivity that has made video sharing and movie streaming commonplace.

The new technology will require an overhaul of telecommunication infrastructure.

The 5G will do more than make mobile phones faster — it will link billions of devices, revolutionising transportation, manufacturing and even medicine. It will also create a multitude of potential openings for bad actors to exploit.

The vulnerability helps explain the rising tension between the US and Huawei Technologies Co, China’s largest technology company.

Huawei is pushing for a global leadership role in 5G, but American officials suspect that could help Beijing spy on Western governments and companies.

“Huawei’s significant presence in 5G creates a new vector for possible cyber-espionage and malware,” Michael Wessel, a commissioner on the US-China Economic and Security Review Commission that advises Congress, said in an interview.

By connecting whole new classes of products, 5G “creates new vulnerabilities”.

The technology holds great promise. Forests of gadgets will communicate instantly via millions of antennas. Cars will talk to each other to avert lethal crashes, factory foremen will monitor parts supplies and doctors can perform remote surgery as video, sound and data flow without delay.

Connections will be 10 to 100 times faster than current standards — quick enough to download an entire movie in seconds.

Yet, US national security officials see billions of opportunities for spies, hackers and cyber-thieves to steal trade secrets, sabotage machinery and even order cars to crash.

Citing security threats, the US has been pushing allies to block Huawei from telecommunication networks. The US Congress has banned government agencies from buying the company’s gear.

Why is the United States intent on killing Huawei? Look at the data below:

Huawei employs more than 10,000 Phd degree holders as well as many talented Russian mathematicians.

Do you know how many Huawei employees earn more than 1 million yuan (RM603,280) a year? More than 10,000 people.

Do you know how many Huawei employees earn more than five million yuan a year? More than 1,000 people!

In China alone, Huawei’s research and development expenditure is 89.6 billion yuan.

Among the Big Three, Alibaba employs 30,000 people, Baidu 50,000, Tencent about 30,000, leading to a total of 110,000; but Huawei’s global employees total 170,000.

Alibaba’s profit is 23.4 billion yuan, Tencent’s 24.2 billion yuan, Baidu’s 10.5 billion yuan, and their profits total 58 billion yuan, but 70% is taken away by foreigners. Since 2000, Huawei has earned 1.39 trillion yuan from abroad.

In taxes, Tencent pays more than seven billion yuan a year, Alibaba 10.9 billion yuan, and Baidu 2.2 billion. Huawei pays 33.7 billion yuan, which is more than the total of the earlier three firms.

Huawei is a high-tech company, and technology represents the true strength of a country.

In China, many companies can’t last long because there are always other companies ready to replace them, but Huawei is irreplaceable.

Huawei is a 100% Chinese company that has not been listed and does not intend to go public because of the susceptibility to be controlled by capital (which the United States can simply print money to do).

Huawei is the first private technology company in China ever to join the league of the world’s top 100. The Chinese should be proud of Huawei.
FMT NewsKoon Yew Yin is a retired chartered civil engineer and one of the founders of IJM Corporation Bhd and Gamuda Bhd.

The views expressed by the writer do not necessarily reflect those of FMT.

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Huawei’s founder Ren Zhengfei breaks years of silence amid continued US attacks on Chinese tech giant


Ren
Zhengfei, founder and chief executive officer of Huawei Technologies
Co., speaks during an interview at the company’s headquarters in
Shenzhen, China, on Tuesday, Jan. 15, 2019. Ren, the billionaire telecom
mogul, broke a years-long silence as his technology empire faces its
biggest crisis over three decades of existence. Photographer: Qilai
Shen/Bloomberg

Ren Zhengfei, the billionaire founder of Huawei Technologies, broke years of silence on Tuesday as his business empire faces its biggest crisis in more than three decades amid continued pressure from the US that its networking gear may pose a security threat.
The telecoms mogul called Donald Trump “a great president” and said he would take a wait-and-see approach to whether the US leader will intervene in the case of his eldest daughter and Huawei finance chief Meng Wanzhou.
Meng is in Canada facing extradition to the US, where authorities have accused her of fraudulently  representing Huawei to evade US sanctions on Iran. She has denied any wrongdoing and said that she will contest the allegations if surrendered to the US.
The emergence of the reclusive Ren, who last spoke with foreign media in 2015, underscores the depth of the attacks on Huawei, the largest symbol of China’s growing technological might.
“I love my country, I support the Communist Party. But I will not do anything to harm the world,” the 74-year-old Ren told a select round table briefing, only his third formal chat with foreign reporters. “I don’t see a close connection between my personal political beliefs and the businesses of Huawei.”
The US has banned government use of Huawei’s technology products and services because of security concerns. US security experts have warned of a range of potential security risks, including but not limited to the capacity to control telecommunications infrastructure and even conduct undetected espionage. It has pressed its
allies to follow suit.
Japan has excluded Huawei from public procurement and Australia and New Zealand have effectively blocked Huawei from the roll-out of their 5G network infrastructure. The UK and Canada are also weighing the possible security risks posed by Huawei — along with a growing list of other European countries.
Huawei has consistently denied any connections with the military, saying that it is a private company part-owned by its employees and that governments need to ensure there is an objective basis for choosing  technology vendors.


“Ren Zhengfei doesn’t give many interviews, but his decision to speak publicly seems like a smart move,”
said Brock Silvers, Shanghai-based managing director of Kaiyuan Capital. “The threat to Huawei’s European business is real and it is understandably responding to it. Ren’s public comments today show how seriously he
views the situation.”

Ren, who joined the Communist Party after leaving the People’s Liberation Army, stressed the potential for
cooperation with the US. He played down Huawei’s role in current trade tensions between Washington and Beijing, which have rattled investors and corporations worldwide.
“Huawei is only a sesame seed in the trade conflict between China and the US,” Ren said from the company’s newest campus in the industrial city of Dongguan.
“Trump is a great president. He dares to massively cut tax, which will benefit the business. But you have to
treat well the companies and countries so that they will be willing to invest in the US and the government will be able to collect enough tax.”
Meanwhile, China’s Foreign Ministry on Tuesday urged Canada to release Meng immediately, saying the case was an abuse of legal procedure. Ministry spokeswoman Hua Chunying made the comment
at a daily news briefing in Beijing.

 

Meng was released on bail five weeks ago and is living under restrictions in her multimillion-dollar Vancouver home while awaiting extradition proceedings.

 

The arrest in Poland last week of a sales executive accused of spying may have helped prompt Ren to personally marshal Huawei’s global response. The employee in Poland was subsequently fired by Huawei, which said the individual had brought the company into disrepute.
Ren expressed hope that Huawei could find a way forward with the US.  Huawei is not a public company, we don’t need a beautiful earnings report,” Ren said. “If they don’t want Huawei to be in some markets, we can scale down a bit. As long as we can survive and feed our employees, there’s a future for us.”

 

Ren is a legendary figure in China’s business world and moves in the highest government circles. The self-made
billionaire is the son of schoolteachers and grew up in a mountainous town in China’s poorest province, Guizhou.

Huawei founder and CEO Ren Zhengfei survived a famine, but can he weather President Trump?

 

A survivor of China’s great famine between 1958 and 1961, Ren graduated from the Chongqing Institute of Civil
Engineering and Architecture. He worked in the civil engineering industry until 1974 when he joined the PLA as an engineer – a connection that still provokes questions in the West about Huawei’s ties to the Chinese army and government.

 

Pushing blockchain revolution


(From left) World of Sharing business development manager Ice Wong, EUNEX (Asia) marketing director Kyan Lee, MBAEX chief executive officer Sebastian Ionut Diaconu, Lim, International Blockchain Research Club vice-president Sunny Chao and blockchain technology company Milletique OTO Distribution senior manager Jasmond Ng posing at Fintech Blockchain Summit in Kulim, Kedah

OVER 2,000 blockchain enthusiasts and leaders shared the latest ideas at Fintech Blockchain Summit which was held in Kulim, Kedah.

The summit themed ‘Blockchain Era, Connecting Future’ explored the potential of blockchain technology in various economic fields.

Delegates discussed blockchain trends and evolution to various platforms and digital assets.

Held at MBI Desaku Multi-function Convention Centre, the summit was jointly organised by World Crypto Organisation, Makefamous Creative Hub Sdn Bhd, Milletique OTO Distribution Sdn Bhd, Mightficent Global Sdn Bhd, Menbridges Academy Sdn Bhd and Macsintec Social Media Sdn Bhd.

Among those attending the summit was Super Minor Community vice-president Nicholas Lim who is also Chainverses magazine chief editor.

“Various groups joined us at the summit to contribute to the progression of financial technology through discussions and sharing sessions.

“We hope this summit will open up greater opportunities for development,” Lim said.

Lim opined that blockchain had good concepts and ideas.

However, he said the biggest resistance in the current blockchain development was the lack of economic support in terms of adoption.

“To overcome this, we need teamwork, good practical solutions and support from the community to push the adoption of blockchain in the country forward,” he added.

During the summit, four groups signed an MoU, including International Financial Technology Academy, Linton University College, Milletique Technology and Menbridges Academy.

The MoU aimed to promote blockchain financial technology through education with the hope of cultivating more blockchain experts in the future.

By emilia ismail The Star


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Year 2018 review: Huawei and the technology cold war, competition in spheres of influence


The Huawei stand is seen during the Mobile World Congress in Barcelona.
Yves Herman / Reuters
Newspaper headline: A true multinational – A Huawei Technologies Co logo sits on display inside an electronic goods store in Berlin on December 17. Photo: VCG
2018 was the year that started the U.S.-China tech cold war. 2019 might be the year that splinters the global technology system into distinct spheres of influence.  

Whatever you call it, the U.S.-China science and technology relationship is being violently remade. While a tightly linked technology system benefited the United States and China over the last two decades, there is now widespread concern on both sides of the Pacific that the economic and security risks outweigh the gains. President Xi Jinping has embraced and accelerated policies designed to increase the  innovativeness of the Chinese economy and reduce dependence on foreign suppliers. The Trump administration has put Chinese technologies policies front and center as a danger to U.S. economic and national security. The eventual outcome of this contest may be two distinct technology systems, with other countries forced to choose if they are going to plug into American or Chinese technology platforms and standards.

Over the last year, the Trump administration has pressured Beijing to roll back Made in China 2025 and worked to prevent the flow of American technology to China. Congress passed the Foreign Investment Risk Review Modernization Act, which expands the Committee on Foreign Investment in the United States’ ability to investigate foreign investment in “critical technologies”, and the Department of Commerce is expected to introduce new export controls on “emerging and  foundational technologies.” In November 2018, then Attorney General Jeff Sessions announced a China Initiative to identify priority Chinese trade theft cases and evaluate whether additional legislative and administrative authorities would be required to protect U.S. assets from foreign economic espionage. The Department of Justice indicted two alleged hackers from the Ministry of State Security in December 2018 for stealing secrets from the banking, finance, telecommunications, health care, energy, and automotive industries.

Huawei, the Chinese telecom manufacturer, sits at the center of this new cold war. 5G, the next generation of mobile communication technology, promises greater speed and capacity, and will enable the internet of things, automated vehicles, and other innovations. It will also introduce new cybersecurity vulnerabilities. While U.S. officials have never publicly provided evidence that Huawei equipment has backdoors or been tampered with, they warn that allowing the company to be involved in the build-out of 5G networks raises unmanageable security risks, and they have steadily increased pressure on the company at home and abroad. In January, after scrutiny from U.S. regulators, AT&T walked back from a deal to sell Huawei smartphones in the United States. The Federal Communications Commission proposed making it harder for smaller carriers to use the Universal Service Fund to pay for future purchases of telecom equipment from Huawei. In August, President Trump signed a bill that prohibited any carrier with any substantial amount of installed Chinese telecom equipment from federal government contracts.

Washington has pressured its allies not to use Huawei. In August, Australia effectively banned Huawei from supplying equipment to develop the country’s 5G wireless infrastructure. In November, the New Zealand government rejected a local telecom’s proposal to use Huawei equipment in its 5G network upgrade. In December, a major British telecom announced that it would remove Huawei equipment, and UK intelligence officials have flagged security shortfalls in Huawei software. Canada, Czech Republic, Germany, India, and Japan are reportedly considering banning or limiting Huawei. While not directly connected to the cybersecurity concerns of Huawei products, the detention of CFO Meng Wanzhou in Canada on charges she misrepresented subsidiary relationships in order to deceive U.S. banks into conducting business with Iranian telecommunications companies in violation of U.S. sanctions has raised the tensions around the company considerably.

The United States is also working with its allies to slow Huawei’s expansion in third markets. Australia objected after the Solomon Islands signed a deal with the company to explore building a link between it and the Australian mainland, and the government eventually stepped in and will pay for the bulk of the construction to keep Huawei out. Efforts by the United States, Japan, and Australia to stop Huawei in its efforts to build a submarine telecommunications cable to Papua New Guinea were not as successful when the country decided that it could not afford to walk away from a project that was more than half finished. As one minister put it, “Whatever views Australia or the U.S. might have in relation to cybersecurity, as far as Huawei or China are concerned, those are for the big boys to worry about.”

The race for 5G is far from over. U.S. companies hold a strong position in patents and technological development. Chinese telecoms are rapidly developing competing technologies, benefit from government support in roll out and implementation of 5G services, and often offer their products at prices twenty to thirty percent cheaper than their competitors. The challenge for Washington is to create an environment that supports innovation at home and a shared approach to 5G security with its friend and allies. The competition is likely to pick up in 2019, and the end result increasingly looks like separate spheres of technology influence.

Most Chinese feel West’s growing containment of China, but optimistic about future: poll

China-US relations are the most important bilateral ties, and more Chinese listed the trade friction between them as the most impressive international event in 2018, according to a latest survey report on how Chinese people view the world.

China excels in testing year of 2018

After this tough year, China has more adequate policy and mental preparations, no matter how 2019 turns out. China needs to be well-prepared for difficulties. No external force can bring China down and those who try will pay a hard price. This is the confidence that 2018 has brought China.

A true multinational – Newspaper headline: A Huawei Technologies Co logo sits on display inside an electronic goods store in Berlin on

US IP hacking allegations reach new depths in whimsical thinking


US Justice Department officials issued indictments on two Chinese nationals who allegedly stole, “in association with” the Chinese Ministry of State Security (MSS), vast amounts of confidential data from at least 45 US tech companies and government agencies over the past ten years.

Zhu Hua and Zhang Shilong were charged with three counts each of computer hacking, conspiracy to commit wire fraud, and aggravated identity theft. According to the indictment, the two men targeted and “stole hundreds of gigabytes of sensitive data” in aviation, space and satellite technology, manufacturing, pharmaceutical, and oil and gas exploration, as well as from communications and computer processing firms and maritime technology companies. The indictment also said the hackers stole personal information on more than 100,000 US Navy personnel.

The indictment claimed the two men were part of the hacking unit, and worked for a company called Huaying Haitai, in association with the Chinese MSS.

This most recent charge is part of the unprecedented prosecutorial efforts aimed at so-called “Chinese government-backed hacking,” and serves as an accurate reflection of the escalated attacks against China that have been carried out by the US through legal mechanisms. The indictment refers to specific individuals, which is actually misleading as it suggests the US has evidence worthy of an indictment against China. But the logical fallacies tucked inside the allegations will not prevent outsiders from thinking that the move was nothing more than a carefully constructed effort motivated by political purposes.

It is unknown if the two Chinese nationals in question, and the company they worked for, have hacked anything at all, let alone US corporations and institutions. However, it is an over-exaggeration to say the alleged hackers are so “omnipotent” that they can pilfer anything they desire from key American sectors. Are they capable of doing so in the real world?

Supposing, as the US DoJ indictment states, that hackers could get whatever they wanted through internet channels, where one or two individuals could steal technology developed by thousands of researchers, then the world’s most profitable sector would be the hacking industry. Computer hackers would have the ability to take down pirates and drug-trafficking enterprises, as well as the top companies in innovation. They would be immune to any kind of legislation. If this really were the case, the best hackers would undoubtedly come from the US and other Western countries as they are most developed in the world.

The US government initially claimed that China’s hacking efforts have so far cost the US hundreds of billions of dollars annually, a preposterous claim from any vantage point. To begin with, and assuming China is so powerful that it has stolen technological information for over a decade that is supposedly worth over a trillion in intellectual property, as the US has indicated, then how is it that China still lags behind the US in so many fields, from chips to electric vehicles, and even aviation engines?

Since the US has been combating hackers for such an extended period, then how is it that some are able to do whatever they want? If American institutions had such fragile cyber systems, then nothing would be worth stealing.

The bias here is rooted in such strong cultural arrogance that some American elites are now convinced that China’s rapid growth could not have happened without first stealing US technology. After failing to find such Chinese cyberspies, US officials amplified concerns by publicly claiming that Chinese scholars and college students in the US were indeed engaged in some level of espionage. Now, these same people whimsically believe that Chinese hackers have an important role on the internet when it comes to US intellectual property theft.

Nobody knows how many hackers are in China, but there isn’t one Chinese citizen who believes that a few online game masters, who could also be cyber thieves, are the true pioneers behind China’s technology modernization. After all, officials from China’s security sector are not that stupid or naïve.

It would be farcical in nature to pair cybersecurity authorities with gaming experts, especially when taking into account the Chinese system. Security officials do not blithely categorize gaming experts, while disregarding Sino-US relations, accusing them of stealing critical foreign technology from a variety of industries, the way a burglar would break into a department store.

Those security officials simply do not exist, who are technology experts that can create a complex system serving the needs of companies in all industries while effectively manipulating would-be hackers with ease. There is not an entity on the planet that would take such a risk when network security is one of the most sensitive issues between China and the US.

The US allegations against China are practically hysterical all by themselves. This latest round shows the US attack on China has become more comprehensive, which could see more of China’s government agencies getting involved. Actually, it is inevitable. Therefore, instead of adhering to a low profile strategy, China must face these provocations from the US and do more to safeguard national interests.

In recent months, the US has taken provocative action, like sanctioning senior-ranking PLA generals, ordering their allies to arrest Huawei executives, to prosecuting and extraditing so-called “Chinese spies,” and signing Tibet-related bills.

China needs to reflect upon the previous passivity that it has shown and respond proactively. China is a country that loves peace and always pursues gentle action. However, now is the time for China to consider new countermeasures against nations who have done nothing but pour dirty water on the country’s basins. – Global Times.

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From trade war to global anarchy?


https://youtu.be/03D-0uDOj_c
https://youtu.be/N8IyDSrMY3w

The arrest of a top Huawei executive may spark a conflict that could cripple America’s rival and unleash chaos in the world order.

WE shouldn’t be misled into thinking that the “trade war” between the United States and China is being resolved following their presidents’ recent meeting.

Instead, President Donald Trump is taking the conflict way beyond tariffs into many other areas in a comprehensive attempt to stop or slow down China’s economic development. This has implications not only for China and countries like Malaysia, which are integrated into the Chinese production chains.

The evolving conflict spells the end of the Western countries’ belief in the win-win benefits of trade and investment liberalisation. It accompanies the emergence of an alternative view that China and some other countries are not partners after all but rivals that must be checked.

Just as Trump and China Presi­dent Xi Jinping were sitting down for dinner on the sidelines of the G20 summit to thrash out a “truce” to their tariff war, the Canadian authorities were arresting the daughter of the owner of Huawei, China’s giant technology company whose smartphone sales are now bigger than that of Apple’s iPhone and second globally only to Samsung phones.

Huawei chief financial officer Meng Wanzhou was in transit at Vancouver airport when she was detained at the request of the US on the grounds that her company violated US sanctions against Iran years ago. Only after many days was she released on bail, and she has to wear an electronic tracker.

The Chinese government called the action “very nasty” and Chinese citizens are outraged. It would be equivalent to China arresting Melinda Gates, co-head of the Bill and Melinda Gates Foundation, for alleged violation of China’s regulations on healthcare. In the whole Western world, there would have been a tremendous outcry and threats of very dire consequences.

Yet the Chinese are supposed to accept Meng’s arrest as a routine matter that is unrelated to the trade war. It cannot be sheer coincidence that years after the alleged crime, the arrest took place at the exact hour that Xi was having dinner with Trump to work out a truce.

The incident reminds us of the US accusation against another Chinese tech leader, ZTE Corp, in 2017 of breaking the same sanctions. A ban was imposed on ZTE from buying telecom chips from US company Qulcomm, which paralysed the company for weeks. Only much later was a political deal struck, with ZTE paying a fine before resuming production.

With China, Trump is concerned not so much with his country’s big trade deficit, but more with the threat to America’s global supremacy.

Suspicions over China’s global ambitions became certainty in the fevered minds of Trump and his hawkish advisers when Xi moved from the rhetoric of the Chinese dream to the concrete industrial plan of Made in China 2025.

This was to get Chinese firms to be world leaders in 10 high-tech sectors, including artificial intelligence, robotics, semiconductors, electric cars and aerospace.

Alarmed by the prospect of Chin­ese domination of the commanding industries of the future, Trump has been countering the ways by which China is developing its world-class companies. This is through trade, investments, subsidies and support, and acquisition of technologies and intellectual property.

The extra tariffs are meant to inhi­bit Chinese exports. The new Export Control Reform Act increa­ses powers to regulate US exports of emerging and foundational technologies of importance to national security, and can be used to ban sales of components and technologies to China.

To prevent Chinese companies from buying into US companies (and acquiring their technologies), the review powers of the US Com­mittee on Foreign Investment have been strengthened.

Last month, new national security rules were passed to allow review of small minority investments into sensitive US technologies, including biotechnology, nanotechnology and wireless communications equipment. The aim is to hinder Chinese firms from buying even small stakes in US tech start-ups.

The US has also been blocking attempts by Chinese firms to take over or buy controlling stakes in US companies, also on national security grounds. For example, the same com­mittee recently refused to app­rove a US$1.2bil (RM5bil) deal bet­ween Money Gram, a US money transfer company, and Ant Financial, a Chin­ese electronic payment company.

European countries and Australia are also increasingly restricting Chinese companies from investing in or taking over domestic firms.

Moreover, the US has banned the use of Huawei’s 5G-related equipment, with Australia and New Zealand following suit.

US officials have also been touring Europe to warn against choosing Huawei equipment, leading to growing concerns over the risk of Chinese spying and the security of 5G networks that use Huawei technology.

When slapping extra tariffs on Chinese products, Trump accused China of intellectual property theft and forced technology transfer.

The US actions cited national security grounds or used the unilateral Section 301 of its domestic trade law. Most World Trade Organ­isation (WTO) law experts view these actions to be a violation of various WTO laws.

Many countries have taken cases against the US in the WTO.

Perhaps feeling that the WTO rules constrain several of its planned actions, the US has moved to cripple the organisation’s dispute settlement system by blocking its appellate body from adding new members.

By the end of 2019, that body will not have enough members left and the WTO will become ineffective as it loses its strongest function.

There would be no more formal way within the multilateral trade system to legally challenge the US actions against China or other countries. Or for any country to challenge the actions of another. The system would break down.

Then the global trade order would slip from rules-based to each country for itself. America first, France first, Britain first, are already in vogue, and many others will follow suit.

The trade war that started with some aluminium and steel may thus snowball into a world of anarchy, where only might prevails.

It is an awful scenario, but not an unrealistic one to ponder upon as 2018 draws to a close.

It is not too late to halt this trend, but something has to give or change drastically in the US, if we are to have even a small chance to avoid disaster.

Image result for Martin Khor the Third World Network logo/images
Global Trends  by martin khor

Martin Khor is adviser of the Third World Network. The views expressed here are entirely his own.

About TWN – Third World Network

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