telecommunications

No technical reason to exclude Huawei as 5G supplier, says UK committee

Posted by | 5g, Asia, Australia, China, cyber security, Ericsson, Europe, huawei, human rights, Ian Levy, Internet of Things, jeremy wright, Mobile, National Cyber Security Centre, national security, Nokia, privacy, Security, TC, telecommunications, United Kingdom, United States, zte | No Comments

A UK parliamentary committee has concluded there are no technical grounds for excluding Chinese network kit vendor Huawei from the country’s 5G networks.

In a letter from the chair of the Science & Technology Committee to the UK’s digital minister Jeremy Wright, the committee says: “We have found no evidence from our work to suggest that the complete exclusion of Huawei from the UK’s telecommunications networks would, from a technical point of view, constitute a proportionate response to the potential security threat posed by foreign suppliers.”

Though the committee does go on to recommend the government mandate the exclusion of Huawei from the core of 5G networks, noting that UK mobile network operators have “mostly” done so already — but on a voluntary basis.

If it places a formal requirement on operators not to use Huawei for core supply the committee urges the government to provide “clear criteria” for the exclusion so that it could be applied to other suppliers in future.

Reached for a response to the recommendations, a government spokesperson told us: “The security and resilience of the UK’s telecoms networks is of paramount importance. We have robust procedures in place to manage risks to national security and are committed to the highest possible security standards.”

The spokesperson for the Department for Digital, Media, Culture and Sport added: “The Telecoms Supply Chain Review will be announced in due course. We have been clear throughout the process that all network operators will need to comply with the Government’s decision.”

In recent years the US administration has been putting pressure on allies around the world to entirely exclude Huawei from 5G networks — claiming the Chinese company poses a national security risk.

Australia announced it was banning Huawei and another Chinese vendor ZTE from providing kit for its 5G networks last year. Though in Europe there has not been a rush to follow the US lead and slam the door on Chinese tech giants.

In April leaked information from a UK Cabinet meeting suggested the government had settled on a policy of granting Huawei access as a supplier for some non-core parts of domestic 5G networks, while requiring they be excluded from supplying components for use in network cores.

On this somewhat fuzzy issue of delineating core vs non-core elements of 5G networks, the committee writes that it “heard unanimously and clearly” from witnesses that there will still be a distinction between the two in the next-gen networks.

It also cites testimony by the technical director of the UK’s National Cyber Security Centre (NCSC), Dr Ian Levy, who told it “geography matters in 5G”, and pointed out Australia and the UK have very different “laydowns” — meaning “we may have exactly the same technical understanding, but come to very different conclusions”.

In a response statement to the committee’s letter, Huawei SVP Victor Zhang welcomed the committee’s “key conclusion” before going on to take a thinly veiled swiped at the US — writing: “We are reassured that the UK, unlike others, is taking an evidence based approach to network security. Huawei complies with the laws and regulations in all the markets where we operate.”

The committee’s assessment is not all comfortable reading for Huawei, though, with the letter also flagging the damning conclusions of the most recent Huawei Oversight Board report which found “serious and systematic defects” in its software engineering and cyber security competence — and urging the government to monitor Huawei’s response to the raised security concerns, and to “be prepared to act to restrict the use of Huawei equipment if progress is unsatisfactory”.

Huawei has previously pledged to spend $2BN addressing security shortcomings related to its UK business — a figure it was forced to qualify as an “initial budget” after that same Oversight Board report.

“It is clear that Huawei must improve the standard of its cybersecurity,” the committee warns.

It also suggests the government consults on whether telecoms regulator Ofcom needs stronger powers to be able to force network suppliers to clean up their security act, writing that: “While it is reassuring to hear that network operators share this point of view and are ready to use commercial pressure to encourage this, there is currently limited regulatory power to enforce this.”

Another committee recommendation is for the NCSC to be consulted on whether similar security evaluation mechanisms should be established for other 5G vendors — such as Ericsson and Nokia: Two European based kit vendors which, unlike Huawei, are expected to be supplying core 5G.

“It is worth noting that an assurance system comparable to the Huawei Cyber Security Evaluation Centre does not exist for other vendors. The shortcomings in Huawei’s cyber security reported by the Centre cannot therefore be directly compared to the cyber security of other vendors,” it notes.

On the issue of 5G security generally the committee dubs this “critical”, adding that “all steps must be taken to ensure that the risks are as low as reasonably possible”.

Where “essential services” that make use of 5G networks are concerned, the committee says witnesses were clear such services must be able to continue to operate safely even if the network connection is disrupted. Government must ensure measures are put in place to safeguard operation in the event of cyber attacks, floods, power cuts and other comparable events, it adds. 

While the committee concludes there is no technical reason to limit Huawei’s access to UK 5G, the letter does make a point of highlighting other considerations, most notably human rights abuses, emphasizing its conclusion does not factor them in at all — and pointing out: “There may well be geopolitical or ethical grounds… to enact a ban on Huawei’s equipment”.

It adds that Huawei’s global cyber security and privacy officer, John Suffolk, confirmed that a third party had supplied Huawei services to Xinjiang’s Public Security Bureau, despite Huawei forbidding its own employees from misusing IT and comms tech to carry out surveillance of users.

The committee suggests Huawei technology may therefore be being used to “permit the appalling treatment of Muslims in Western China”.

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‘World’s first Bluetooth hair straighteners’ can be easily hacked

Posted by | Apps, Bluetooth, Gadgets, hardware, pen test partners, Security, technology, telecommunications, United Kingdom, wireless | No Comments

Here’s a thing that should have never been a thing: Bluetooth-connected hair straighteners.

Glamoriser, a U.K. firm that bills itself as the maker of the “world’s first Bluetooth hair straighteners,” allows users to link the device to an app, which lets the owner set certain heat and style settings. The app can also be used to remotely switch off the straighteners within Bluetooth range.

Big problem, though. These straighteners can be hacked.

Security researchers at Pen Test Partners bought a pair and tested them out. They found that it was easy to send malicious Bluetooth commands within range to remotely control an owner’s straighteners.

The researchers demonstrated that they could send one of several commands over Bluetooth, such as the upper and lower temperature limit of the device — 122°F and 455°F respectively — as well as the shut-down time. Because the straighteners have no authentication, an attacker can remotely alter and override the temperature of the straighteners and how long they stay on — up to a limit of 20 minutes.

“As there is no pairing or bonding established over [Bluetooth] when connecting a phone, anyone in range with the app can take control of the straighteners,” said Stuart Kennedy in his blog post, shared first with TechCrunch.

There is a caveat, said Kennedy. The straighteners only allow one concurrent connection. If the owner hasn’t connected their phone or they go out of range, only then can an attacker target the device.

Here at TechCrunch we’re all for setting things on fire “for journalism,” but in this case the numbers speak for themselves. If, per the researchers’ findings, the straighteners could be overridden to the maximum temperature of 455°F at the timeout of 20 minutes, that’s setting up a prime condition for a fire — or at very least burn damage.

It’s estimated that as many as 650,000 house fires in the U.K. are caused by hair straighteners and curling irons left on. In some cases it can take more than a half-hour for these heated devices to cool down to safe levels. U.K. fire and rescue services have called on owners to physically pull the plug on their devices to prevent fires and damage.

Glamoriser did not respond to a request for comment prior to publication. The app hasn’t been updated since June 2018, suggesting a fix has yet to be put in place.

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YouTube lands on Fire TV and Amazon Prime Video arrives on Chromecast, Android TV

Posted by | Amazon, Amazon Fire TV, Android, Android TV, Apps, chromecast, Cube, Gadgets, Google, Media, Multimedia, prime, prime video, smart tv, streaming, streaming video, TC, technology, telecommunications, YouTube | No Comments

It’s nice when people can come together and work through their differences to make it easier to watch stuff. That’s exactly what happened today, when the long-standing detente between Google and Amazon over streaming video services came to an end, with YouTube arriving on Fire TV and Prime Video making its way to Chromecast and Android TV.

Amazon’s second-generation Fire TV Stick, their Fire TV Stick 4K, the Fire TV Cube, Fire TV Stick Basic Edition and Fire TV Edition smart TVs made by partner OEMs will all get support for the official YouTube app globally starting today, and Amazon intends to extend support to even more of its hardware in the future. YouTube TV and YouTube Kids will also come to Amazon Fire TV devices later this year.

On the Google side, both its own Chromecast devices, as well as partner TVs and hardware that support Chromecast built-in, or that run Android TV, will gain support broadly for Prime Video. Plus, any Chromecast Ultra owners will also get access to Prime Video’s 4,000-title library normally reserved for Prime members, at no additional cost, as part of the new tie-up between the two companies.

Prime has been available on some Android TV devices to date, but it’s expanding to a much broader selection of those smart TVs and streaming boxes from today.

This has been a long time coming — several years in fact, with the most recent spat between the two coming as a result of Amazon’s implementation of YouTube on the Echo Show. Then, in May, the companies announced they’d reached an agreement to put the feud behind them in the interest of consumers, which is what resulted in this cross-platform launch today.

Let the streams flow!

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Huawei can buy from US suppliers again — but things will never be the same

Posted by | america, Android, Asia, China, Companies, donald trump, g20, Google, huawei, mobile phones, operating system, president, Ren Zhengfei, smartphones, supply chain, telecommunications, Trump administration, United States | No Comments

U.S. President Donald Trump has handed Huawei a lifeline after he said that U.S. companies are permitted to sell goods to the embattled Chinese tech firm following more than a month of uncertainty.

It’s been a pretty dismal past month for Huawei since the American government added it and 70 of its affiliates to an “entity list” which forbids U.S. companies from doing business with it. The ramifications of the move were huge across Huawei’s networking and consumer devices businesses. A range of chip companies reportedly forced to sever ties while Google, which provides Android for Huawei devices, also froze its relationship. Speaking this month.

All told, Huawei founder and chief executive Ren Zhengfei said recently that the ban would cost the Chinese tech firm — the world’s third-larger seller of smartphones — some $30 billion in lost revenue of the next two years.

Now, however, the Trump administration has provided a reprieve, at least based on the President’s comments following a meeting with Chinese premier Xi Jinping at the G20 summit this weekend.

“US companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it,” the U.S. President said.

Those comments perhaps contradict some in the US administration who saw the Huawei blacklisting as a way to strangle the company and its global ambitions, which are deemed by some analysts to be a threat to America.

President Trump has appeared to soften his tone on Chinese communications giant Huawei, suggesting that he would allow the company to once again purchase US technology https://t.co/4YNJCyKLTg pic.twitter.com/jr45f40ghP

— CNN International (@cnni) June 29, 2019

Despite the good news, any mutual trust has been broken and things are unlikely to be the same again.

America’s almost casual move to blacklist Huawei — the latest in a series of strategies in its ongoing trade battle with China — exemplifies just how dependent the company has become on the U.S. to simply function.

Huawei has taken steps to hedge its reliance on America, including the development of its own operating system to replace Android and its own backup chips, and you can expect that these projects will go into overdrive to ensure that Huawei doesn’t find itself in a similar position again in the future.

Of course, decoupling its supply chain from US partners is no easy task both in terms of software and components. It remains to be seen if Huawei could maintain its current business level — which included 59 million smartphones in the last quarter and total revenue of $107.4 billion in 2018 — with non-US components and software but this episode is a reminder that it must have a solid contingency policy in case it becomes a political chess piece again in the future.

Beyond aiding Huawei, Trump’s move will boost Google and other Huawei partners who invested significant time and resources into developing a relationship with Huawei to boost their own businesses through its business.

Indeed, speaking to press Trump, Trump admitted that US companies sell “a tremendous amount” of products to Huawei. Some “were not exactly happy that they couldn’t sell” to Huawei and it looks like that may have helped tipped this decision. But, then again, never say never — you’d imagine that the Huawei-Trump saga is far from over despite this latest twist.

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Huawei says two-thirds of 5G networks outside China now use its gear

Posted by | 5g, Alphabet, Android, Asia, carrier, ceo, China, Companies, finland, hardware, huawei, india, Nokia, operating system, president, Rajeev Suri, Ren Zhengfei, shenzhen, smartphone, south korea, spokesperson, switzerland, telecommunications, Trump administration, United Kingdom, United States | No Comments

As 5G networks begin rolling out and commercializing around the world, telecoms vendors are rushing to get a headstart. Huawei equipment is now behind two-thirds of the commercially launched 5G networks outside China, said president of Huawei’s carrier business group Ryan Ding on Tuesday at an industry conference.

Huawei, the world’s largest maker of telecoms gear, has nabbed 50 commercial 5G contracts outside its home base from countries including South Korea, Switzerland, the United Kingdom, Finland and more. In all, the Shenzhen-based firm has shipped more than 150,000 base stations, according to Ding.

It’s worth noting that network carriers can work with more than one providers to deploy different parts of their 5G base stations. Huawei offers what it calls an end-to-end network solution or a full system of hardware, but whether a carrier plans to buy from multiple suppliers is contingent on their needs and local regulations, a Huawei spokesperson told TechCrunch.

In China, for instance, both Ericsson and Nokia have secured 5G contracts from state-run carrier China Mobile (although Nokia’s Chinese entity, a joint venture with Alcatel-Lucent Shanghai Bell, is directly controlled by China’s State-owned Assets Supervision and Administration Commission).

Huawei’s handsome number of deals came despite the U.S’s ongoing effort to lobby its allies against using its equipment. In May, the Trump administration put Huawei on a trade blacklist over concerns around the firm’s spying capabilities, a move that has effectively banned U.S. companies from doing businesses with the Shenzhen-based giant.

Huawei’s overall share in the U.S. telecoms market has so far been negligible, but many rural carriers have long depended on its high-performing, cost-saving hardware. That might soon end as the U.S. pressures small-town network operators to quit buying from Huawei, Reuters reported this week.

To appease potential clients, Huawei has gone around the world offering no-backdoors pacts to local governments of the U.K. and most recently India.

Huawei is in a neck and neck fight with rivals Nokia and Ericsson. In early June, Nokia CEO Rajeev Suri said in an interview with Bloomberg that the firm had won “two-thirds of the time” in bidding contracts against Ericcson and competed “quite favorably with Huawei.” Nokia at the time landed 42 5G contracts, while Huawei numbered 40 and Ericsson scored 19.

Huawei’s challenges go well beyond the realm of its carrier business. Its fast-growing smartphone unit is also getting the heat as the U.S. ban threatens to cut it off from Alphabet, whose Android operating system is used in Huawei phone, as well as a range of big chip suppliers.

Huawei CEO and founder Ren Zhengfei noted that trade restrictions may compromise the firm’s output in the short term. Total revenues are expected to dip $30 billion below estimates over the next two years, and overseas smartphone shipment faces a 40% plunge. Ren, however, is bullish that the firm’s sales would bounce back after a temporary period of adjustment while it works towards self-dependence by developing its own OS, chips and other core technologies.

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LTE flaws let hackers ‘easily’ spoof presidential alerts

Posted by | amber alert, Emergency Alert System, Government, hawaii, LTE, Mobile, mobile phones, president, Security, technology, telecommunications, text messaging, United States | No Comments

Security vulnerabilities in LTE can allow hackers to “easily” spoof presidential alerts sent to mobile phones in the event of a national emergency.

Using off-the-shelf equipment and open-source software, a working exploit made it possible to send a simulated alert to every phone in a 50,000-seat football stadium with little effort, with the potential of causing “cascades of panic,” said researchers at the University of Colorado Boulder in a paper out this week.

Their attack worked in nine out of 10 tests, they said.

Last year the Federal Emergency Management Agency sent out the first “presidential alert” test using the Wireless Emergency Alert (WEA) system. It was part of an effort to test the new state-of-the-art system to allow any president to send out a message to the bulk of the U.S. population in the event of a disaster or civil emergency.

But the system — which also sends out weather warnings and AMBER alerts — isn’t perfect. Last year amid tensions between the U.S. and North Korea, an erroneous alert warned residents of Hawaii of an inbound ballistic missile threat. The message mistakenly said the alert was “not a drill.”

Although no system is completely secure, many of the issues over the years have been as a result of human error. But the researchers said the LTE network used to transmit the broadcast message is the biggest weak spot.

Because the system uses LTE to send the message and not a traditional text message, each cell tower blasts out an alert on a specific channel to all devices in range. A false alert can be sent to every device in range if that channel is identified.

Making matters worse, there’s no way for devices to verify the authenticity of received alerts.

The researchers said fixing the vulnerabilities would “require a large collaborative effort between carriers, government stakeholders and cell phone manufacturers.” They added that adding digital signatures to each broadcast alert is not a “magic solution,” but would make it far more difficult to send spoofed messages.

A similar vulnerability in LTE was discovered last year, allowing researchers to not only send emergency alerts but also eavesdrop on a victim’s text messages and track their location.

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Huawei says US ban will cost it $30B in lost revenue

Posted by | 5g, Android, Asia, China, China Mobile, huawei, mit media lab, Mobile, Nicholas Negroponte, operating system, Ren Zhengfei, smartphone, telecommunications | No Comments

Following a string of trade restrictions from the U.S., China’s telecoms equipment and smartphone maker Huawei expects its revenues to drop $30 billion below forecast over the next two years, founder and chief executive Ren Zhengfei said Monday during a panel discussion at the company’s Shenzhen headquarters.

Huawei’s production will slow down in the next two years while revenues will hover around $100 billion this and next year, according to the executive. The firm’s overseas smartphone shipment is tipped to drop 40%, he said, confirming an earlier report from Bloomberg.

That said, Ren assured that Huawei’s output will be “rejuvenated” by the year 2021 after a period of adjustment.

Huawei’s challenges are multifaceted as the U.S. “entity list” bars it from procuring from American chip makers and using certain Android services, among a list of other restrictions. In response, the Chinese behemoth recently announced it has been preparing for years its own backup chips and an alternative smartphone operating system.

“We didn’t expect the U.S. to attack Huawei with such intense and determined effort. We are not only banned from providing targeted components but also from joining a lot of international organizations, collaborating with many universities, using anything with American components or even connecting to networks that use American parts,” said Ren at the panel.

The founder said these adverse circumstances, though greater than what he expected, would not prevent the company from making strides. “We are like a damaged plane that protected only its heart and fuel tank but not its appendages. Huawei will get tested by the adjustment period and through time. We will grow stronger as we make this step.”

huawei

“Heroes in any times go through great challenges,” reads a placard left on a table at a Huawei campus cafe, featuring the image of a damaged World War II aircraft (Photo: TechCrunch)

That image of the beaten aircraft holding out during hard times is sticking to employees’ minds through little motivational placards distributed across the Huawei campus. TechCrunch was among a small group of journalists who spoke to Huawei staff about the current U.S.-China situation, and many of them shared Ren’s upbeat, resilient attitude.

“I’m very confident about the current situation,” said an employee who has been working at Huawei for five years and who couldn’t reveal his name as he wasn’t authorized to speak to the press. “And my confidence stems from the way our boss understands and anticipates the future.”

More collaboration

Although 74-year-old Ren had kept a quiet profile ever since founding Huawei, he has recently appeared more in front of media as his company is thrown under growing scrutiny from the west. That includes efforts like the Monday panel, which was dubbed “A Coffee With Ren” and known to be Ren’s first such fireside chat.

Speaking alongside George Gilder, an American writer and speaker on technology, and Nicholas Negroponte, co-founder of the MIT Media Lab, Ren said he believed in a more collaborative and open economy, which can result in greater mutual gains between countries.

“The west was the first to bring up the concept of economic globalization. It’s the right move. But there will be big waves rising from the process, and we must handle them with correct rather than radical measures,” said Ren.

“It’s the U.S. that will suffer from any effort to decouple,” argued Gilder. “I believe that we have a wonderful entrepreneurial energy, wonderful creativity and wonderful technology, but it’s always thrived with collaboration with other countries.”

“The U.S. is making a terrible mistake, first of all, picking on a company,” snapped Negroponte. “I come from a world where the interest isn’t so much about the trade, commerce or stock. We value knowledge and we want to build on the people before us. The only way this works is that people are open at the beginning… It’s not a competitive world in the early stages of science. [The world] benefits from collaboration.”

“This is an age for win-win games,” said one of the anonymous employees TechCrunch spoke to. He drew the example of network operator China Mobile, which recently announced to buy not just from Huawei but also from non-Chinese suppliers Nokia and Ericsson after it secured one of the first commercial licenses to deploy 5G networks in the country.

“I think the most important thing is that we focus on our work,” said Ocean Sun, who is tasked with integrating network services for Huawei clients. He argued that as employees, their job is to “be professional and provide the best solutions” to customers.

“I think the commercial war between China and the U.S. damages both,” suggested Zheng Xining, an engineer working on Huawei’s network services for Switzerland. “Donald Trump should think twice [about his decisions].”

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Foxconn halts some production lines for Huawei phones, according to reports

Posted by | Android, Apple, Companies, donald trump, Foxconn, Google, huawei, mobile phones, operating system, president, shenzhen, smart phone, smartphone, smartphones, TC, telecommunications, United States, Xiaomi | No Comments

Huawei, the Chinese technology giant whose devices are at the center of a far-reaching trade dispute between the U.S. and Chinese governments, is reducing orders for new phones, according to a report in The South China Morning Post.

According to unnamed sources, the Taiwanese technology manufacturer Foxconn has halted production lines for several Huawei phones after the Shenzhen-based company reduced orders. Foxconn also makes devices for most of the major smart phone vendors including Apple and Xiaomi (in addition to Huawei).

In the aftermath of President Donald Trump’s declaration of a “national emergency” to protect U.S. networks from foreign technologies, Huawei and several of its affiliates were barred from acquiring technologies from U.S. companies.

The blacklist has impacted multiple lines of Huawei’s business including it handset manufacturing capabilities given the company’s reliance on Google’s Android operating system for its smartphones.

In May, Google reportedly suspended business with Huawei, according to a Reuters report. Last year, Huawei shipped over 200 million handsets and the company had a stated goal to become the world’s largest vendor of smartphones by 2020.

These reports from The South China Morning Post are the clearest indication that the ramifications of the U.S. blacklisting are beginning to be felt across Huawei’s phone business outside of China.

Huawei was already under fire for security concerns, and will be forced to contend with more if it can no longer provide Android updates to global customers.

Contingency planning is already underway at Huawei. The company has built its own Android -based operating system, and can use the stripped down, open source version of Android that ships without Google Mobile Services. For now, its customers also still have access to Google’s app store. But if the company is forced to make developers sell their apps on a siloed Huawei-only store, it could face problems from users outside of China.

Huawei and the Chinese government are also retaliating against the U.S. efforts. The company has filed a legal motion to challenge the U.S. ban on its equipment, calling it “unconstitutional.”  And Huawei has sent home its American employees deployed at R&D functions at its Shenzhen headquarters.

It has also asked its Chinese employees to limit conversations with overseas visitors, and cease any technical meetings with their U.S. contacts.

Still, any reduction in orders would seem to indicate that the U.S. efforts to stymie Huawei’s expansion (at least in its smartphone business) are having an impact.

A spokesperson for Huawei U.S. did not respond to a request for comment.

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Science publisher IEEE bans Huawei but says trade rules will have ‘minimal impact’ on members

Posted by | Android, Asia, China, Education, fedex, Gadgets, huawei, IEEE, Intel, New York, Policy, Qualcomm, smartphone, telecommunications, U.S. government | No Comments

The IEEE’s ban on Huawei following new trade restrictions in the United States has sent shock waves through global academic circles. The organization responded saying the impact of the trade policy will have limited effects on its members, but it’s hard at this point to appease those who have long hailed it as an open platform for scientists and professors worldwide to collaborate.

Earlier this week, the New York-headquartered Institute of Electrical and Electronics Engineers blocked Huawei employees from being reviewers or editors for its peer-review process, according to screenshots of an email sent to its editors that first circulated in the Chinese media.

Unbelievable, IEEE is forced to ban Huawei employees from peer-reviewing papers or handling papers as editors. pic.twitter.com/pkvQeOUI07

— Junhui Qian (@qian_junhui) May 29, 2019

The IEEE later confirmed the ban in a statement issued on Wednesday, saying it “complies with U.S. government regulations which restrict the ability of the listed Huawei companies and their employees to participate in certain activities that are not generally open to the public. This includes certain aspects of the publication peer review and editorial process.”

In mid-May, the U.S. Department of Commerce’s Bureau of Industry and Security added Huawei and its affiliates to its “Entity List,” effectively barring U.S. firms from selling technology to Huawei without government approval.

It’s unclear what makes peer review at the IEEE a technology export, but the science association wrote in its email to editors that violation “may have severe legal implications.”

Whilst it’s registered in New York, the IEEE bills itself as a “non-political” and “global” community aiming to “foster technological innovation and excellence for the benefit of humanity.”

Despite its removal of Huawei scientists from paper vetting, the IEEE assured that its compliance with U.S. trade restrictions should have “minimal impact” on its members around the world. It further added that Huawei and its employees can continue to participate in other activities as a member, including accessing the IEEE digital library; submitting technical papers for publication; presenting at IEEE-sponsored conferences; and accepting IEEE awards.

As members of its standard-setting body, Huawei employees can also continue to exercise their voting rights, attend standards development meetings, submit proposals and comment in public discussions on new standards.

A number of Chinese professors have reprimanded the IEEE’s decision, flagging the danger of letting politics meddle with academic collaboration. Zhang Haixia, a professor at the School of Electronic and Computer Engineering of China’s prestigious Peking University, said in a statement that she’s quitting the IEEE boards in protest:

This is Haixia Zhang from Peking University, as an old friend and senior IEEE member, I am really shocked to hear that IEEE is involved in “US-Huawei Ban” for replacing all reviewers from Huawei, which is far beyond the basic line of Science and Technology which I was trainedand am following in my professional career till now.

…today, this message from IEEE for “replacing all reviewers from Huawei in IEEE journals” is challenging my professional integrity. I have to say that, As a professor, I AM NOT accept this. Therefore, I decided to quit from IEEE NANO and IEEE JMEMS editorial board untill one day it come back to our common professional integrity.

The IEEE freeze on Huawei adds to a growing list of international companies and organizations that are severing ties or clashing with the Chinese smartphone and telecom giant in response to the trade blacklist. That includes Google, which has blocked select Android services from Huawei; FedEx, which allegedly “diverted” a number of Huawei packages; ARM, which reportedly told employees to suspend business with Huawei; as well as Intel and Qualcomm, which also reportedly cut ties with Huawei. 

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China’s largest chipmaker is delisting from the NYSE

Posted by | Android, Asia, China, Companies, Google, huawei, Intel, Qualcomm, shanghai, spokesperson, telecommunications, United States, Xiaomi | No Comments

The U.S-China trade war is increasingly influencing tech. Huawei has suffered a turbulent past week with key suppliers pausing work with the company, and now China’s largest chipmaker is planning to delist from the New York Stock Exchange.

Semiconductor Manufacturing International Corp (SMIC) announced in a filing published Friday that it plans to delist next month ending a 15-year spell as a public company in the U.S. The firm will file a Form 25 to delist on June 3, which is likely to see it leave the NYSE around ten days later. SMIC, which is backed by the Chinese government and state-owned shareholders, will focus on its existing Hong Kong listing going forward but there will be trading options for those holding U.S-based ADRs.

In its announcement, SMIC said it plans to delist for reasons that include limited trading volumes and “significant administrative burden and costs” around the listing and compliance with reporting.

What it doesn’t say is that this is linked to the frosty relationship between the U.S. and China, and already the company has played that rationale.

“SMIC has been considering this migration for a long time and it has nothing to do with the trade war and Huawei incident. The migration requires a long preparation and timing has coincided with the current trade rhetoric, which may lead to misconceptions,” a spokesperson told CNBC.

Still, it is impossible to ignore the current context. Huawei’s entry to a U.S. blacklist has paused its relationship with key suppliers including ARM, Qualcomm, Intel and Google, which supplies the Android OS for its phones, so SMIC’s decision to remove its financial links to the U.S. fees into fears of a bifurcation of U.S. and Chinese tech, deliberate or not.

SMIC’s shares dropped 4 percent in Hong Kong on Friday. Trading of its U.S-based ADRs crossed one million on Friday, that’s well above an above 90-day volume of nearly 150,000 per day.

The company is China’s largest chip firm, specializing in integrated circuit manufacturing with clients such as Qualcomm, Broadcom and Texas Instruments. SMIC made a profit of $746.7 million in 2018 on revenues of $3.36 billion. Its most recent Q1 results released earlier this month saw revenue fall 19 percent year-on-year.

There has always been tension around Chinese companies using U.S. public markets to go public, and not just from an American standpoint. Chinese companies are increasingly exploring other options, including Hong Kong — where Xiaomi went public last year — while a-soon-to-launch ‘science and tech’ board in Shanghai is hotly touted as an alternative destination.

The board launches in pilot mode next month, but already Chinese bankers and tech companies have found it challenging to deliver on expectations, as a Reuters report earlier this year concluded.

Update: The headline of this article has been updated to reflect that SMIC is delisting from the NYSE not the Nasdaq

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