U.S. Lawmakers Propose Ban on Chip Sales to Huawei, <span style='color:red'>ZTE</span>
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U.S. Lawmakers Propose Ban on Chip Sales to Huawei, ZTE

　　A bipartisan group of U.S. lawmakers has introduced legislation which would ban the export of U.S. chips and other components to Chinese telecommunications companies Huawei and ZTE for violating U.S. export control laws.　　The Telecommunications Denial Order Enforcement Act — sponsored by Senators Tom Cotton (R-Arkansas) and Chris Van Hollen (D-Maryland) and Representatives Mike Gallagher (R-Wisconsin) and Ruben Gallego (D-Arizona) — would direct the U.S. President to impose penalties pursuant to denial orders on Chinese telecommunications companies that are in violation of the export control or sanctions laws of the U.S., among other purposes.　　The U.S. Commerce Det. issued a denial order banning the sale of components to ZTE last year, following a four-year investigation into ZTE's failure to comply with U.S. export control laws banning sales to Iran. The order was rescinded in June at the direction of U.S. President Donald Trump — who said it would result in too many Chinese job losses — in the midst of trade negotiations between the U.S. and China.　　Last month, Huawei Chief Financial Officer Meng Wanzhou was arrested in Canada at the request of U.S. prosecutors on charges of violating U.S. sanctions.　　"Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People's Liberation Army," Cotton said in a statement.　　Cotton added that if Chinese companies like Huawei violate U.S. sanctions or export control laws, "they should receive nothing less than the death penalty — which this denial order would provide."　　"Huawei and ZTE are two sides of the same coin," Senator Van Hollen said. "Both companies have repeatedly violated U.S. laws, represent a significant risk to American national security interests, and need to be held accountable."　　The bill's introduction comes at a time of high trade tensions between the U.S. and China, with both sides imposing tariffs on products imported from the other. The Trump Administration continues to negotiate with China on a long term trade deal that would presumably end the trade war, but so far no agreement has been produced.　　On Thursday, the Wall Street Journal reported that Trump Administration officials are debating the relaxation or removal of some tariffs against Chinese products in an effort to aid the trade talks between the two countries.　　Also Thursday, the Wall Street Journal reported that U.S. federal prosecutors are investigating whether Huawei stole trade secrets from U.S. business partners, including T-Mobile.
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Release time：2019-01-21 00:00 reading：1230 Continue reading>>
U.S. lawmakers introduce bipartisan bills targeting China's Huawei and <span style='color:red'>ZTE</span>
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U.S. lawmakers introduce bipartisan bills targeting China's Huawei and ZTE

　　A bipartisan group of U.S. lawmakers introduced bills on Wednesday that would ban the sale of U.S. chips or other components to HuaweiTechnologies Co Ltd , ZTE Corp or other Chinese telecommunications companies that violate U.S. sanctions or export control laws.　　Senator Tom Cotton and Representative Mike Gallagher, both Republicans, along with Senator Chris Van Hollen and Representative Ruben Gallego, both Democrats, introduced the measures, which would require the president to ban the export of U.S. components to any Chinese telecommunications company that violates U.S. sanctions or export control laws.　　The bills specifically cite ZTE and Huawei, both of which are viewed with suspicion in the United States because of fears that their switches and other gear could be used to spy on Americans. Both have also been accused of failing to respect U.S. sanctions on Iran.　　Huawei is the world's biggest producer of telecommunications equipment.　　"Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People's Liberation Army," Cotton wrote in a statement. "If Chinese telecom companies like Huawei violate our sanctions or export control laws, they should receive nothing less than the death penalty - which this denial order would provide."　　Huawei's founder, Ren Zhengfei, denied this week that his company was used by the Chinese government to spy.　　Canada detained Ren's daughter, Meng Wanzhou, who is Huawei's chief financial officer, in December at the request of U.S. authorities investigating an alleged scheme to use the global banking system to evade U.S. sanctions against Iran.　　For its part, ZTE agreed last year to pay a $1 billion fine to the United States that had been imposed because the company breached a U.S. embargo on trade with Iran. As part of the agreement, the U.S. lifted a ban in place since April that prevented ZTE from buying the U.S. components it heavily relies on to make smartphones and other devices.
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Release time：2019-01-18 00:00 reading：1075 Continue reading>>
White House mulls new year executive order to bar Huawei, <span style='color:red'>ZTE</span> purchases
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White House mulls new year executive order to bar Huawei, ZTE purchases

President Donald Trump is considering an executive order in the new year to declare a national emergency that would bar U.S. companies from using telecommunications equipment made by China's Huawei and ZTE, three sources familiar with the situation told Reuters.It would be the latest step by the Trump administration to cut Huawei Technologies Cos Ltd and ZTE Corp , two of China's biggest network equipment companies, out of the U.S. market. The United States alleges that the two companies work at the behest of the Chinese government and that their equipment could be used to spy on Americans.The executive order, which has been under consideration for more than eight months, could be issued as early as January and would direct the Commerce Department to block U.S. companies from buying equipment from foreign telecommunications makers that pose significant national security risks, sources from the telecoms industry and the administration said.While the order is unlikely to name Huawei or ZTE, a source said it is expected that Commerce officials would interpret it as authorization to limit the spread of equipment made by the two companies. The sources said the text for the order has not been finalized.The executive order would invoke the International Emergency Economic Powers Act, a law that gives the president the authority to regulate commerce in response to a national emergency that threatens the United States.The issue has new urgency as U.S. wireless carriers look for partners as they prepare to adopt next generation 5G wireless networks.The order follows the passage of a defense policy bill in August that barred the U.S. government itself from using Huawei and ZTE equipment.Huawei and ZTE did not return requests for comment. Both in the past have denied allegations their products are used to spy. The White House also did not return a request for comment.The Wall Street Journal first reported in early May that the order was under consideration, but it was never issued.HIT TO RURAL NETWORKSRural operators in the United States are among the biggest customers of Huawei and ZTE, and fear the executive order would also require them to rip out existing Chinese-made equipment without compensation. Industry officials are divided on whether the administration could legally compel operators to do that.While the big U.S. wireless companies have cut ties with Huawei in particular, small rural carriers have relied on Huawei and ZTE switches and other equipment because they tend to be less expensive.The company is so central to small carriers that William Levy, vice president for sales of Huawei Tech USA, is on the board of directors of the Rural Wireless Association.The RWA represents carriers with fewer than 100,000 subscribers. It estimates that 25 percent of its members had Huawei or ZTE equipment in their networks, it said in a filing to the Federal Communications Commission earlier this month.The RWA is concerned that an executive order could force its members to remove ZTE and Huawei equipment and also bar future purchases, said Caressa Bennet, RWA general counsel.It would cost $800 million to $1 billion for all RWA members to replace their Huawei and ZTE equipment, Bennet said.Separately, the FCC in April granted initial approval to a regulation that bars giving federal funding to help pay for telecommunication infrastructure to companies that purchase equipment from firms deemed threats to U.S. national security, which analysts have said is aimed at Huawei and ZTE.The FCC is also considering whether to require carriers to remove and replace equipment from firms deemed a national security risk.In March, FCC Chairman Ajit Pai said "hidden 'back doors' to our networks in routers, switches — and virtually any other type of telecommunications equipment - can provide an avenue for hostile governments to inject viruses, launch denial-of-service attacks, steal data, and more."In the December filing, Pine Belt Communications in Alabama estimated it would cost $7 million to $13 million to replace its Chinese-made equipment, while Sagebrush in Montana said replacement would cost $57 million and take two years.Sagebrush has noted that Huawei products are significantly cheaper. When looking for bids in 2010 for its network, it found the cost of Ericsson equipment to be nearly four times the cost of Huawei.
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Release time：2019-01-02 00:00 reading：1333 Continue reading>>
China's <span style='color:red'>ZTE</span> loses major German mobile contract
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China's ZTE loses major German mobile contract

Chinese telecoms giant ZTE lost its biggest contract in Germany, network provider Telefonica on Friday said, as resistance mounts across the West to Beijing's infrastructure manufacturers. ZTE's contract to maintain mobile operator O2's network, which is owned by Spain's Telefonica, "will come to an end as planned at the end of the year," said a spokesman for the German firm, confirming a report from business daily Handelsblatt. In an interview with the newspaper, Telefonica Deutschland chief executive Markus Haas held back from criticising ZTE over quality problems that have plagued O2's integration of its network with competitor E-Plus over the past four years. In future it will work with a much smaller German firm, Dortmund-based GfTD, rather than ZTE, he said. Maintenance of masts and other infrastructure that makes mobile networks run is a "local service", Haas explained. Also according to Handelsblatt, ZTE is looking to score a new big German contract with network provider United Internet as the country gears up to auction licences for upcoming 5G mobile internet frequencies. The next-generation technology is expected to form the backbone of future applications like automated driving that could reshape the economy in the coming decades. ZTE declined to comment on the report when contacted by AFP. The Chinese firm's woes in Germany follow British telecoms group BT's announcement this month that it would move away from equipment provided by rival Huawei in its mobile network. Huawei has been singled out by Western leaders for its alleged links to Chinese intelligence services. The US government officially asked telecoms operators not to buy the firm's products early this year. (AFP) KUN KUN
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Release time：2018-12-17 00:00 reading：1183 Continue reading>>
Japan's top 3 telcos to exclude Huawei, <span style='color:red'>ZTE</span> network equipment: Report
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Japan's top 3 telcos to exclude Huawei, ZTE network equipment: Report

Japan's big three telecom operators plan not to use current equipment and upcoming fifth-generation (5G) gear from China's Huawei Technologies Co Ltd and ZTE Corp, Kyodo News reported on Monday.The news, for which Kyodo did not cite sources, comes at a time of heightened scrutiny of Chinese tech firms by Washington and some prominent allies over ties to the Chinese government, driven by concerns they could be used by Beijing for spying.Johannes Eisele | AFP | Getty ImagesThe ZTE logo is seen on an office building in Shanghai on May 3, 2018.Last week sources told Reuters that Japan planned to ban government purchases of equipment from Huawei and ZTE to ensure strength in its defences against intelligence leaks and cyber attacks.A SoftBank Group Corp spokesman said Japan's third-largest telco was closely watching government policy and is continuing to consider its options. The amount of equipment in use from Chinese makers "is relatively small", he said.The country's top two telecommunications operators, NTT Docomo Inc and KDDI Corp, said the firms had not made any decision yet.Docomo does not use Huawei or ZTE network equipment, but it has partnered with Huawei on 5G trials. KDDI also does not use Huawei equipment in its "core" network, a spokeswoman said, adding it does not use any ZTE network equipment.Huawei did not respond to Reuters request for comment, while ZTE declined to comment.Huawei has already been locked out of the U.S. market, and Australia and New Zealand have blocked it from building 5G networks amid concerns of its possible links with China's government. Huawei has said Beijing has no influence over it.Japan's decision to keep it out would be another setback for Huawei, whose chief financial officer was recently arrested by Canadian officials for extradition to the United States.World financial markets have been roiled since news of the arrest, on worries it could reignite a Sino-U.S. trade row that was only just showing signs of easing.Shares of SoftBank, which has the deepest relationship with Huawei among the big Japanese telcos, fell the most among the three top Japanese telcos on Monday, ending down 3.5 percent.Industry sources said SoftBank would find it difficult to replace pre-existing Huawei network equipment that is designed for the company and not easily interchangable.Docomo and KDDI shares fell around 1 percent, in a wider market that closed down 2 percent.Earlier, SoftBank's Japanese telecoms unit priced its IPO at an indicated 1,500 yen ($13.31) per share and said it will sell an extra 160 million shares to meet solid demand, raising about $23.5 billion in Japan's biggest-ever IPO.
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Release time：2018-12-11 00:00 reading：1283 Continue reading>>
Vodafone Idea inks 4G network pacts worth $1.4 bn; Huawei, <span style='color:red'>ZTE</span> emerge as major gainers at Nokia expense
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Vodafone Idea inks 4G network pacts worth $1.4 bn; Huawei, ZTE emerge as major gainers at Nokia expense

Vodafone Idea Ltd (VIL) has finalised new network equipment supply contracts, with Chinese equipment makers Huawei and ZTEemerging major gainers at the expense of European rivals Nokia and Ericsson as India's largest telco focusses on costs in a bid to realise Rs 14,000 crore worth of annual synergies two years ahead of time.After a tight battle for the overall contract likely worth $1.3-1.4 billion (Rs 9,230-9,940 crore), Finland’s Nokia and Sweden’s Ericsson will collectively meet roughly 65% of Vodafone Idea’s network gear requirements, while the two Chinese vendors will handle the remaining 35%, people familiar with the matter said. Previously, the Europeans met some 80% of the cumulative telecom equipment needs of Vodafone India and Idea Cellular before their merger, which was completed on August 31.The newly-created telco is racing against time to merge its dual network to not just save on costs but also to kick off deepening and expansion of its 4G network and increase capacity as it lags erstwhile market leader Bharti Airtel and latest entrant Reliance Jio, and has consequently been losing subscribers. Vodafone Idea have also said it plans to refarm 2G and 3G spectrum and deploy for 4G. “Vodafone Idea will shortly place purchase orders (POs) with Nokia, Ericsson, Huawei and ZTE for 4G network gear, aggregating roughly $1.3-1.4 billion as nearly 30% of existing equipment will be reused in smaller towns to optimise costs and improve capex efficiency,” one of the people quoted above said.Another person said Vodafone Idea has stepped up gear purchases from Huawei and ZTE as both Chinese network vendors offered more attractive prices and flexibility in payment terms over two to three year-spans unlike Ericsson and Nokia, which had quoted higher rates and sought payments at the point of deployment itself.Nokia and Ericsson though still bagged more circles—nine and eight respectively, to Huawei’s seven and ZTE’s five, all of which were shared with another vendor. Nokia currently provides networks equipment to the combined Vodafone-Idea Cellular entity in 15 circles, followed by Ericsson in 14 circles. Huawei and ZTE supply equipment to VIL in seven and three circles, respectively.In a major win for the Chinese companies, Huawei bagged the latest contracts for both Delhi and Chennai metros, while Ericsson didn’t get a single metro circle. Nokia got Mumbai and Kolkata, and shared the Tamil Nadu circle with Huawei, though it lost out on Chennai. Nokia and Ericsson declined comment while Vodafone Idea, Huawei and ZTE didn’t respond to ET’s emailed queries.Balesh Sharma, chief executive officer of Vodafone Idea, told analysts on Wednesday that the operator had completed its vendor selections for circles and zones. The company, in a presentation, also said it had brought forward by two years to FY21 the annual Rs 14,000-crore run-rate for costs and capex synergies.The latest contracts come as a breather for both Huawei and ZTE who have been facing severe revenue challenges in India due to rapid consolidation in the telecom service provider market, besides facing headwinds in some global markets due to security concerns. Both these vendors have got more circles than previously estimated, due to the mobile phone operator’s focus on keeping costs in check, another person said. "While initially, Vodafone Idea was veering towards the European vendors, Idea’s previous experiences with the Chinese players, especially in terms of running a tight ship, tilted the scales," the person said.The company is facing intense financial pressure. Vodafone Idea posted a loss of Rs 4,974 crore and an earnings before interest, taxes, depreciation and amortisation margin of 8.1% for the quarter ended September, raising concerns about its ability to service debt that has ballooned to more than Rs 1.15 lakh crore.Rohan Dhamija, partner and head of India & Middle East at Analysys Mason, said Vodafone Idea could have thought about giving more circles to fewer vendors to get bigger volume discounts, which would have helped them in financially turbulent times."However, the decision could be driven by the complexity of the two merged networks, hence the need for enrolling specific vendors in specific circles."
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Release time：2018-11-23 00:00 reading：1066 Continue reading>>
Huawei and <span style='color:red'>ZTE</span> banned from selling 5G equipment to Australia
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Huawei and ZTE banned from selling 5G equipment to Australia

China's Huawei and ZTE have been banned from providing 5G technology equipment to Australia.Huawei made a statement on Twitter Thursday saying that the Australian government had made the move despite the Chinese firm "safely and securely" delivering wireless technology in the country for nearly 15 years.Twitter Ads info and privacyA spokesperson for Australia's Department of Communications and the Arts, which overseas telecoms regulations, did not say Huawei and ZTE had been banned specifically, but pointed CNBC toward a statement released Thursday regarding security guidance for Australian mobile carriers."The government considers that the involvement of vendors who are likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law, may risk failure by the carrier to adequately protect a 5G network from unauthorized access or interference," part of the statement said, highlighting that the government feels both Chinese firms could post national security threats.Huawei and ZTE were not immediately available for comment.5G next generation mobile internet technology is touted as being the backbone of future cities and even driverless cars. Many countries, including China and the U.S., are laying the groundwork to roll this technology out in the next few years. But it is also highly politicized with China and the U.S. battling it out to become a leader in the technology.In the U.S., Huawei and ZTE are restricted from selling telecoms equipment because of national security concerns.
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Release time：2018-08-24 00:00 reading：861 Continue reading>>
China's <span style='color:red'>ZTE</span> sees heavy losses in H1 due to U.S. penalty
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China's ZTE sees heavy losses in H1 due to U.S. penalty

Chinese telecoms equipment group ZTE Corp said on Friday it expected to record a net loss in the first half of the year due to the hefty fine it agreed in order to lift a U.S. ban on component supplies. It estimated a preliminary net loss of 7.0-9.0 billion yuan ($1.05-1.34 billion) in January to June period versus a profit of 2.3 billion yuan the previous year, it said in a filing to the Hong Kong stock exchange.ZTE, which makes smartphones and networking gear, signed an agreement with the United States on Thursday that paved the way for it to resume operations after a nearly three-month ban on doing business with American suppliers.The settlement ZTE reached with the U.S. Commerce Department included a $1 billion penalty and a deposit of $400 million in an escrow account."The substantial decrease in results was mainly due to operating losses and provision for losses resulting from the suspension of the major operating activities," ZTE said in the exchange filing.The ban was imposed in April after Commerce Department officials said ZTE made false statements about disciplining 35 employees after it pleaded guilty last year to violating U.S. sanctions by illegally shipping U.S. goods and technology to Iran, the Commerce Department said.
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Release time：2018-07-16 00:00 reading：1417 Continue reading>>
<span style='color:red'>ZTE</span> shares surge 22% as US sanctions lift moves step closer
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ZTE shares surge 22% as US sanctions lift moves step closer

Shares in Chinese telecoms equipment maker ZTE surged more than 20 percent in Hong Kong on Thursday after the company moved a step closer to having a painful US purchase ban lifted.The firm had been forced to halt operations and was on the verge of collapse after Washington announced a seven-year ban on US companies selling it crucial parts owing to its handling of a sanctions violation.However, as a favour to Chinese President Xi Jinping, US President Donald Trump ordered the Commerce Department to ease the penalties and replace it with an order to pay a $1 billion fine and put $400 million in an escrow account to cover any future penalties for violations.It was also ordered to replace its board of directors and retain outside monitors.On Wednesday ZTE signed an escrow agreement, meaning the sanctions could be lifted as soon as Thursday.The news sent shares in the firm soaring 22.08 percent in Hong Kong to HK$13.60 by the break. Still, it is sharply down from the HK$25.60 it was at before trading was suspended after the sanctions were announced in April.ZTE was pushed to the brink by the initial penalty, which came after US officials said it had failed to take action against staff who were responsible for violating trade sanctions against Iran and North Korea. It was fined $1.2 billion last year for those violations.Trump's decision to step in was seen as an olive branch by the president as trade war tensions started to mount, making it a key element in the spat between Washington and Beijing.However, despite the agreement US lawmakers are working to reinstate the ban, accusing Trump rewarding a company that has repeatedly broken US law and engaged in espionage.
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Release time：2018-07-13 00:00 reading：1247 Continue reading>>
<span style='color:red'>ZTE</span> taps in-house executive as new CEO
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ZTE taps in-house executive as new CEO

After being hit by American sanctions, Chinese multinational telecommunications equipment and systems giant ZTE has roped in Xu Ziyang, an in-house executive with experience in product research and operations, to serve as its new CEO.Xu, president of ZTE's Telecom Cloud and Core Network product line, has been selected as the new CEO, South China Morning Post reported on Thursday.Li Ying, the current vice president of the finance department, would take over the role of CFO while Gu Junying, a newly-elected executive director on the new board, would lead the company's human resources department.The US said it would let the Chinese tech giant to temporarily re-start some of its business operations as it considers lifting a seven-year ban imposed on the firm. The US had imposed sanctions on ZTE for illegal sales to Iran and North Korea but the Chinese company agreed to take corrective action. When regulators in the US found ZTE to be violating the terms of the agreement, they cut off the firm from its US parts suppliers. ZTE, which employs 70,000 people in China, had described the move by the US regulators to cut it off from its US parts suppliers as a "death sentence".
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Release time：2018-07-06 00:00 reading：1230 Continue reading>>

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