Huawei Technologies Co (華為) and ZTE Corp (中興) “cannot be trusted,” US Attorney General William Barr said in a letter released on Thursday, labeling the Chinese firms a security threat as he backed a proposal to bar rural wireless carriers from tapping an US$8.5 billion government fund to purchase equipment or services from the companies.
The US Federal Communications Commission (FCC) is to vote on Friday next week on a proposal requiring the carriers to remove and replace equipment from the companies.
Barr said in a letter to the commission that “their own track record, as well as the practices of the Chinese government, demonstrate that Huawei and ZTE cannot be trusted.”
“We should not signal that Huawei and ZTE are anything other than a threat to our collective security, for that is exactly what they, through their actions, have shown themselves to be,” he said.
Huawei and ZTE did not immediately comment.
Barr said that US federal prosecutors have charged Huawei with breaches of the US embargo on Iran, bank fraud, obstruction of justice and trade secret theft.
ZTE in 2017 pleaded guilty to illegally sending approximately US$32 million of US goods to Iran.
FCC Chairman Ajit Pai said that the commission “cannot ignore the risk that the Chinese government will seek to exploit network vulnerabilities in order to engage in espionage, insert malware and viruses, and otherwise compromise our critical communications networks.”
The move is the latest action aimed at barring US companies from purchasing Huawei and ZTE equipment.
Huawei last week said that “in 30 years of business, Huawei has never had a major security-related incident in the 170 countries where we operate.”
The US government added Huawei to its economic blacklist in May, saying the Chinese company was involved in activities contrary to US national security.
Washington has pressed other nations not to grant Huawei access to 5G networks and alleged Huawei’s equipment could be used by Beijing for spying, which the Chinese company has repeatedly denied.
Several European nations have not agreed to bar Huawei, despite US pressure.
US President Donald Trump in May signed a long-awaited executive order declaring a national emergency and barring US companies from using telecommunications equipment made by companies posing a national security risk.
The order directed the US Department of Commerce to draw up an enforcement plan by the middle of last month.
The department has yet to publish a plan.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to