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.

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About the Author: Oren Garnes

100 Comments

  1. "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?

  2. 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!

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

  4. 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

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

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

  7. 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.

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

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

  10. 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

  11. 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.

  12. 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.

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

  14. 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?

  15. 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…

  16. 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.

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

  18. 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.

  19. 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.

  20. 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.

  21. 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.

  22. 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.

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

  24. 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.

  25. 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!

  26. 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.

  27. 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.

  28. 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!!!

  29. America does not need "laws" to make American companies to cooperate with the NSA for spying — the evidence is provided by Edward Snowden! Where is the evidence against Huawei? America cannot accept the idea that OTHERS can be great too.

  30. U.s. has the same law companies have to co-op and surrender info if there is someone suspected of felony. Like the fuck? Or am I just miss informed here?

  31. Trump: Hey, don't cooperate with Huawei!
    Merkel: How do you know German companies are about to cooperate with Huawei?
    Trump: Because I heard about it from your recent phone calls.

  32. Why? Because US is the a inside out loser!! Can't compete then to kidnap, to assassin. US know how to steal,to lie, to cheat in order to be successful!

  33. I literally found out that most viewers are just Chinese ourselves… lol
    Real American people do not care about the world…

  34. Also some banana repubblic can not sell bananas to the US ,who cares if the chinese are out.
    We do not need them and in the last 30 years they chinese needed the western technology and is going to be like this for another 3 decades.

  35. nonsensical fearmongering

    the USA cannot force Huawei to maintain backdoor "spy access" like USA has done to USA based communication devices
    so they angrily reject Huawei by wrongfully accusing Huawei of doing (backdoor spying) what only US tech companies already do

    5G in China is already widespread + mature in other Chinese industries long BEFORE being used in consumer smartphones emerging now.

  36. Think about it. if china spy on you, do they get to arrest you? nah!

    if usa get to spy on you say FBI, do they get to arest you? sure do!

    os chinese buy made in usa iphone (china can't spy on) american should buy huawei (FBI can't spy on).

    the rest of the world should by top quality and great value phone, stick with huawei if you think usa spying on you. or stick with overprice iphone if think usa spying is ok. by the way china don't do extra judicial sanctions on any person, usa do it all the time

  37. NONSENSE.
    There is NOT an iota of evidence that Huawei has stolen or copied any US Technologies.
    Yet the commentators failed to mentioned US companies lost their cases against this Giant Chinese Private Enterprise Huawei.
    China has sold already 200 million smartphone. They could jolly well delivered another 70 million before 2019 ends.

    Verison of USA is using 2300 of Huawei IPR and Huawei has sounded its intention to collect ROYALTIES from US that is illegal using them.
    BTW China accounts for 42% of all IPR filing at WIPO vs USA 19% and Japan 10%.
    China needs more protection from US thievery of Chinese Technologies. 😂😂😂😂

  38. Funny, the more beating Huawei got from US, the faster and larger its sale grows? Its 3Q 2019 sale grew by 66% compared to its 3Q 2018 sale. It had sold 41.3 million units of mobile phone in the 3Q 2019 compared to 5.1 million units of Apple's iPhone in the same period. Huawei should send a big thank you note to President Trump for making Huawei well-known all over the world, even in some backward countries never heard of its name before.

  39. Uncle Scam posses the gravest threat to the entire civilized world. NSA spyware is installed on every cellphone in the world,…except Huawei!!!!! They will not allow NSA to install US spyware on their communication equipment. Check it out.

  40. It is a Global Shame.
    Americans found they are incapable of honestly competing against Huawey and China's superior tech and decided to use unilateral sanctions.
    That is a testament of American incapacity to play by international rules!

  41. Yeah that’s natural you always badmouth with somebody for something you don’t have to cry like a baby jealous like a woman keep going go find any that you can say about Huawei security problem

  42. Instead of joining the competition and trying to get ahead of the competitors, Trump is trying to drag the competitor down. It might work running his own mob organization with this strategy but it’s a terrible way of running a country.

  43. US: Don't buy Huawei. It is a national security risk.
    Singapore PM: That's because Huawei equipment makes it hard for NSA to spy on you.
    United States Department of State Secretary
    Mike Pompeo: We lie. We steal. We Cheat, and we are proud of doing so for our country!
    US commerce Secretary Ross: "We are banning Huawei because it is a national security risk. We don't have a Huawei competitor in US, so it's not for protecting US companies." (Apple is not a Huawei competitor?)

  44. Huawei biggest problem is they are working on so many areas that they can be attacked…. But USA have shown their face that they attack people on state level if they dominate…

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