U.S. lawmakers have alleged that Chinese equipment makers’ ZTE and Huawei potential expansion into the U.S. could increase the instances of cyberattacks and spying. But the companies are working to dispel those accusations by stating they are not controlled by the Chinese government.
The New York Times is reporting that the companies are looking to supply telecommunications gear to power networks in the U.S., but they might face restrictions. During a congressional hearing, the manufacturers were accused of not cooperating with an investigation and had not shown they were independent of the Chinese government, which has been accused of stealing U.S. intellectual property. Charles Ding, a senior vice president at Huawei, has said his company has been “hindered by unsubstantiated, nonspecific concerns that Huawei poses a security threat.” A member of the U.S. panel explained that there is concern that the Chinese government would use Huawei and ZTE to get information if they expanded into the U.S.
Yankee Group Senior Analyst Boris Metodiev comments
“If there is national security threat from using the equipment of the two Chinese companies in the U.S., the investigation committee needs to find a solid proof for it. Otherwise, it will look as an unfair way to hinder their seemingly inevitable expansion in the US and a way to promote the local American manufacturers. I don’t understand how the companies ‘might face restrictions.’ If it is proven that the companies are involved in cyber attacks and spying, they should be banned completely; their reputation will be tarnished and it will be all over for them, as far as international sales is concerned. And if nothing is proven, then there shouldn’t be any restrictions whatsoever. How about any other foreign equipment manufacturers? Are they going to be investigated too?”
Sales of Apple’s new iPhone reached record heights during the first weekend the device was available for pre-order. In fact, 2 million units of the iPhone 5 were sold during the first 24 hours alone, which more than doubled the previous record the company set in 2011.Read more >
Daily Insight | Jason Armitage | September 18, 2012
Amazon has announced it is launching its own maps API to give Google a bit of competition, and according to a Nokia spokesperson, Amazon is licensing the Nokia Location Platform (NLP).Read more >
Zaptap, a Canadian startup based in New Brunswick, is set to release a mobile application that will combine social sharing with mobile commerce capabilities for what the company says will be an improved shopping experience.Read more >
Carriers are certainly feeling a bit of a strain on their networks as more and more people purchase smartphones and data plans. US Cellular has launched Wi-Fi Now to help ease some of the pressure.Read more >
Daily Insight | December 4, 2013