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Why Chinese Tech Giant Huawei Scares the U.S.

Why Chinese Tech Giant Huawei Scares the U.S.

Since December 2018, China’s biggest company,
Huawei, has has been rocked by political and legal turmoil. Huawei, a company that most Americans may
not have even heard of until just recently. The FBI is investigating Huawei’s dealings
with this tiny Chicago-area startup… Huawei can create a backdoor to China. The Trump administration has been on a campaign
to block Huawei from selling equipment for 5G networks in the U.S. and allies abroad,
claiming the company poses a national security threat. Speak to the company’s customers and they
paint a different picture. To them, Huawei makes reliable, affordable
equipment without equal. This is the story of how Huawei went from
a small-time parts reseller to the homegrown tech giant China always hoped for, and the
west always feared. I am announcing that a grand jury in seattle
has returned an indictment that alleges 10 federal crimes by two affiliates of telecommunications
company Huawei There is clearly a full court press in Washington
to make it seem as though Huawei poses a grave threat to the future of Western civilization
literally, and that’s why you saw the Commerce Secretary, the FBI director, and the acting
Attorney General of the United States at a press conference for what were
really not that serious a charge. Huawei’s recent spat with the U.S. began
in December with the arrest of Meng Wanzhou, Huawei’s CFO and daughter of the company’s
founder. Then in January, the U.S. indicted the company
for theft of trade secrets, conspiracy, and obstruction of justice stemming from a previous
lawsuit brought by T-Mobile. Bloomberg Businessweek discovered that January
28th, the same day as the Attorney General’s announcement, the FBI raided a Huawei-owned
lab in San Diego under suspicion that it had stolen groundbreaking smartphone glass technology
from another firm. U.S. Secretary of State Michael Pompeo has
come close to issuing an us-or-them ultimatum that nations buying from Huawei might find
they can’t shop for American technology too. But Huawei’s troubles aren’t anything
new, having been accused by Cisco in 2002, and Motorola, in 2010, of intellectual property
theft. Since 2012, major U.S. telecoms have essentially
blackballed Huawei thanks to government pressure, which while damaging hasn’t done much to
slow its progress worldwide. Huawei was founded in 1987 by former People’s
Liberation Army engineer Ren Zhengfei in Shenzhen. At the time, all of China’s telecommunications
equipment was imported from abroad- Ren wanted to build a domestic competitor that could
rival and eventually surpass foreign companies. The company moved quickly from reselling telephone
switches made mostly in Hong Kong, to reverse-engineering equipment made abroad for Huawei to manufacture
itself. Its early contracts with groups like the People’s
Liberation Army gave Huawei the Government connections it needed to grow, and its high-quality
products did the rest. They’re really good at what they do. They build very sophisticated devices that
power wireless systems and cellular systems and telecom and the backbone of the internet,
the networking environment, and they do it at a much lower price point. Better equipment, lower cost. //There are other countries, other companies,
primarily in Europe that make this stuff, but Huawei is by far the price performance
leader at the moment. By 2012, Huawei had become the biggest telecoms-equipment-maker
in the world. And in 2018, it overtook Apple as the second-biggest
smartphone manufacturer. But what could be Huawei’s biggest success,
and what scares countries like the U.S. so much, is its role in building the backbone
of the coming 5G revolution. It has a lot to do with the specific character
of the 5G world. It’s going to be far more software driven,
which is far more open to very hidden, very subversive, very discreet back doors that
could allow malevolent states or hackers or others with the control and means over the
technology to wreak all sorts of havoc. To this end, Congress has enacted a ban on
government agencies and contractors purchasing Huawei equipment. Ren Zhengfei and Huawei have always maintained
that the business is “employee-owned,” and they would not cooperate with any interference
from China’s government. U.S. officials like to point out that they
may not have to. China passed a law that requires all companies
and all individuals in China to cooperate with the Intelligence Services if asked. So, the China Hawks are saying, “Well, we
don’t have to give anyone proof of past bad behavior, because, with that law on the books,
the potential is there for the government to simply commandeer Huawei for its’ own purposes. 5G tech will be far more prevalent in daily
life than anything we’re used to now, and the country that controls or builds 5G will
simply have more influence than they used to, on a global scale. there’s companies and executives all over
the world, including in the United States, who absolutely swear by them. So China’s long-hoped-for tech giant has
finally arrived. What remains to be seen is how much more of
the world Huawei can conquer- and if the U.S. can slow it down.

Reader Comments

  1. The US has already take a hypocrite move towards Huawei now by stopping Google from providing its service to Huaweii

  2. The US is truly afraid to see how big Hauwei would get. I think it would dwarf iPhones' precipice height of glory. Look at Chinas's population alone… they have 5G already and America is still working on it. Thay means they have continued to 6 already… America is already behind a country that is still rising and has yet to shift into cruise control. I would not be surprise if they reach 4 times Apple's…

  3. If you can beat them join them, to US ban them and demonize them and glorify US, A simple commercial US strategy.

  4. Funny, didn't Snowden prove that the US is also spying through these same means?
    — Don't see any black balling any US companies.
    — It's u fortunate that our government is openly demonstrating how hypocritical we are. Do as I say, not as I do. Isn't that pretty communist?

  5. Apple took a huge share using iPhone. Just first Unix mutant. Later Microsoft. Sun next with GUI. Then at&t. IBM started patents. Then Microsoft then Apple. Then Samsung. Then android. Ubuntu Linux redhat etc. Smartphones were the first for Nokia but Apple took over. Streaming utube and Facebook next. Now huawei.

  6. When it comes to business gringos are going to use any stupid excuse to fuck up any other company that is not "American"

  7. As an American, I am ashamed by our government's bullying around the world. We know from Edward Snowden that the US government has spied on many countries and their companies, including those of our allies. So we should point the finger at ourselves before accusing others of spying. I hope the world will unite against our government's weaponization of technology, finance and economic. To impose economic sanctions against other countries and inflict pain on their citizens and companies simply because we don't agree with their idealology is a crime against humanity. America can and should be better than that….

  8. USA, modelled on the Mafia, but just with no honour code at all. And ordinary Americans too brainwashed, too ignorant, and too stupid to even half understand their predicament.

  9. Have you ever heard of intellectual property theft. Read on this matter. Americans and Europeans are on the brink of losing nearly every other tech companies cos their ideas would already be there with china which would in turn sell the same thing at lower prices and lower quality only to remove competition from west.. ban is much required since long.

  10. Built on the technology of reverse engineered theft.

    Intellectual property and honoring patents really is not a strong China virtue.

  11. My $170 2018 Chinese flagship is 3 years advanced in term of technology than the most expensive 2019 iphone, so apple had to involve president Donal J Trump to stop this Chinese awsomeness!!

  12. America like always using dirty tricks …. World need to ban YouTube , google , Facebook because all these companies are working for CIA AMERICAN SPY …

  13. You cannot trust the US goverment, true. But anyone who trusts the Chinese government more than the US government needs to get their brain checked.

  14. Huawei is better than IPhone. American companies are not creative anymore that's why they can't compete with Huawei

  15. its always been china and the us fighting or not fighting over trade laws and stuff… with trump is even more obvious… one fearing the other taking over or being too powerful… so complicated and so much political trash from these two country

  16. People supporting huawei in comment section
    "THEY HAVE BEEN STEALING THINGS FROM LAST 10 years back to back to back"
    And their country law forces them to spy and record things and send it back to china

  17. "Slow it down". That's a businessman, conqueror and loser's thought in mind. For athletes who compete in an equal world for better human records, they only want to improve themselves and aim for the championships. Have you ever seen Phelps trying to ban his opponents out of the Olympics?

  18. United States need to be leader on everything on this planet? Donald dumb already spy for so many years, so how about give another country to spying 😂 stupid hooman!

  19. because the US.always do something that the boss likes to do,and China can do something make the US. like a scares us.yes,you are right.

  20. Ok please someone explain to me wasn't apple spying on most of America how come knowones side anything to them Samsung was also doing the same thing but these companies get a slap on the rist if I'm not mistaking also Microsoft was too

  21. So, China can ban google, Facebook, YouTube, etc due to "national security" while USA can't do the same thing?

  22. Charging useless fees should not be a mean to increase profits. The Chinese is way more innovative in fintech.

  23. If Huawei isn't much better than US technology, there isn't any reason for China hawks to act against this competition. Nothing but shame on US Administration.

  24. If the world is using Huawei devices and networks. Then how will the US spy on you, without a back door.

  25. Why they can sell cheaper? Because they don't have R&D cost, just steal everything from other tech companies.

  26. Nobody is scare of China, It's not the right word. The world uncovers the evil nature of CCP and must not believe what the CCP says but look at what they do

  27. America is afraid of Huawei because its rise will add to further fall of the US economy. National security here implies economic challenge the US cannot compete. Anything about spying is fake.

  28. Chinese Huawei has only belt on his own remaining things are borrowed from developed countries after some time Huawei forgot everything and act like bass. Now developed countries are taking back thiere things one by one coat, tie, pant etc. Now Huawei left with underwear with his belt looks so ugly. Chinese even do not have patent to manufacture world class discreet transistor so pity.

  29. 🤦‍♂️🤦‍♂️🤦‍♂️ u never owned a huawei phone cuse I have and they suck in every way shape and form

  30. The US has been in bed with the telcom industry since the 30's. All tech companies have to share and work with NSA etc. What are they beefing with Huawei for?

  31. An observation you pick at first sight when you quickly scan over this comment box is that US has maaaaaany enemies, maaaaaaaaany people who can't wait to see it's fall…

  32. Americans like to believe their fake news and that is why they have a lower average IQ than Chinese. Don’t believe me, go find those result about average IQ by country.

  33. Answer: because 99% of Huawei is owned by the workers in the company. Only 1 percent by the founder and 0 percent by a rich investor class… they want Huawei to fail by any means… that's the reason.

  34. Now you know how it feels when the West went did the same thing to other countries, commercially political and spying

  35. The reality is it's just as dangerous for the US or Germany or any company to have the ability that is being used as fuel against China.

  36. If you use Huawei US can't spy on you, that's what' piss US off..Huawei please open a back door for US to become 6 eye.

  37. I sure hope you know that ALL US corps MUST give over whatever data they have if the US asks for it too! Google gets over 40,000 requests per quarter for info on American citizens and Verizon/At&t gave the NSA/CIA direct feed access to the underwater cables thus our backbone and cables Huawei laid as most of our data is already handled by Huawei.

  38. Apple phones went from being super secure, enough to piss of law enforcement especially the FBI, to turning their phones into one of the world's BEST spying tools which turns itself on and records all audio and locational data. Thus WE'RE spying on China for SURE, the question is Huawei returning the favor? So far after ten YEARS of FBI hacking into their entire company they've found NO Chinese gov involvement in ANYTHING.

  39. People who were born with silver spoons in their mouths,
    don't want to compete with people who were born with saw dust in their mouths.
    Wealthy people can't work long hours because they are not hungry enough.

  40. tbh USA is upping its support for tech companies focused on 5G … Communism that can militarize 5G will lose … any comment is appreciated

  41. Huawei's products mobile phone with sub-6 frequency band 5G will indeed endanger the National Army. Interference with the US weapons refers to the sub-6 band of the main military equipment. Disabling Huawei is in line with national defense security considerations.

  42. Scare tactics full of BS from the American media totally founded on the fact that China is leaps and bounds ahead in 5G technology which America seems to think they own, very sad!

  43. Don't tell me that Apple has actually funded money to the Trump party to ban Huawei to protect their business. If I am hearing that it was apple pressuring Trump to ban Huawei I am mad.

  44. Long term, my money's on the Chinese. We'll be sitting in our corner of the globe arguing about guns, abortion, gay people, Black people, immigrants, right wing nuts, etc. while they are reorganizing and rebuilding a lot of the whole world.

  45. I have no idea why a better equipment and lower in prices is a problem? It is something at least in every body’s interests to get the best for less. What the fuck people!!!

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