Chinese tech companies spooked about becoming 'next ZTE'

[qwerrty]

Dominant, in a competitive field, usually implies being better in some capability, which usually means technology.

Qorvo and Skyworks are simply better at their tech, or the price/performance than their competitors.

As for Intel, intel's chips are energy hungry, and are performance intensive. You know that that paradigm failed for mobile. It was a different market which Intel treated as if it was normal computing like in PCs.

intel has atom chips for mobile devices and are not energy hungry at all. their problem is they came late to the game and nobody want to change, not because of inferior technology. lol

Also, determined to lead and keep their hold on technologies, foreign companies are in fact increasing their lead over China right now.

http://www.guru3d.com/news-story/sa...-class-16gb-lpddr4x-dram-for-automobiles.html

it's about american tech here, not samsung. don't change the subject. china would love to have samsung as replacement. no problem between china and 'em

 

[Akasa]

Huawei is now being investigated for violating Iran sanctions, by the FBI. Trump's administration has been very tactful with these investigations during this trade war against China; I'm sure there are a few more tricks up his sleeve in the form of criminal investigations against Chinese firms if the CCP does not relent.

Huawei Said to Be Probed by FBI for Possible Iran Violations

By Sheridan Prasso
April 25, 2018, 9:01 AM PDT Updated on April 25, 2018, 7:49 PM PDT

The U.S. Justice Department has joined two other agencies probing Huawei Technologies Co. for possible violations of sanctions banning sales to Iran, according to two people familiar with the matter.

Agents from the Federal Bureau of Investigation, which is overseen by the Justice Department, have been looking into transactions by the Shenzhen, China-based mobile and telecommunications giant, the people said. According to one of them, the criminal inquiry grew out of an earlier sanctions-violation probe that ultimately led to penalties against another Chinese technology company, ZTE Corp.

The U.S. Treasury Department’s Office of Foreign Assets Control, or OFAC, which enforces sanctions, and the Department of Commerce are also looking into Huawei’s transactions. The Commerce Department in 2016 issued an administrative subpoena aimed at Huawei, China’s largest maker of telecommunications equipment, seeking information about whether it was sending U.S. technology to rogue nations including Syria, Iran and North Korea.

Earlier this month, the Commerce Department banned ZTE, China’s second-biggest network equipment maker, from buying U.S.-made components as punishment for violating a sanctions settlement over transactions with Iran and North Korea. ZTE had previously reached a settlement with the Commerce Department’s Bureau of Industry and Security, and pleaded guilty as part of a sanctions-violations agreement with the Justice Department. ZTE agreed to pay $892 million in fines and forfeitures in the Justice Department deal, at the time the largest U.S. criminal fine against a Chinese company, with additional fines if it failed to comply with the deal.

Rival ‘F7’
Internal ZTE documents posted on the Commerce Department website cited a rival, referred to only as “F7,” as also violating U.S. export controls in sales of equipment to Iran.

A group of Republican lawmakers pushed the Trump administration last April to investigate and identify F7, citing news reports that have highlighted the similarities between the company described in the documents and Huawei. The FBI and OFAC investigations into Huawei have been going on since at least early 2017, according to one of the people with knowledge of the probes, who asked not to be identified because he isn’t authorized to speak about the matter.

A finding of wrongdoing by Huawei and a similar U.S. supplier export ban "would have wide ramifications on various suppliers on a larger scale than peer ZTE, in our view," according to Bloomberg Intelligence technology analysts Woo Jin Ho and Anand Srinivasan. "Chip suppliers such as Skyworks and Qorvo, each with about 10 percent sales exposure to Huawei, would be affected. Optical suppliers including NeoPhotonics, Oclaro and Lumentum may also be exposed."

Some Huawei suppliers in Asia slid after the news, with Chinasoft International Ltd.tumbling as much as 21 percent and Sunny Optical Technology Group Co. fell 7.4 percent.

Huawei Technologies’ $500 million of 2027 notes fell 0.9 cents on the dollar to a record low of 93.2 cents in Hong Kong trading. Its bonds are the worst performers in the Bloomberg Barclays Asia dollar bond index Thursday.

‘Actively Cooperates’
Glenn Schloss, a spokesman for Huawei in Shenzhen, declined to comment about the probes. The company has said it complies with all applicable laws and regulations where it operates, including U.S. export controls and sanctions laws and regulations, and that it “actively cooperates” with government agencies regarding its compliance.

A spokesman for the Justice Department declined to comment.

voted unanimously last week to ban federal funds from being used to purchase networking gear from companies determined to be a national security risk, dealing another blow to ZTE and Huawei. The measure has yet to be finalized. FCC Chairman Ajit Pai cited the risk of “hidden ‘back doors’ to our networks in routers, switches and other equipment” that could “allow hostile foreign powers to inject viruses and other malware.”

No Threat
Schloss, the Huawei spokesman, said those allegations aren’t true.

“We pose no security threat in any country,” he said. “U.S. authorities should not base government decisions on speculation or rumor. In 30 years, not a single operator has experienced a security issue with our equipment.”

Huawei was founded in 1988 by former Chinese army engineer Ren Zhengfei, leading to congressional concerns over Chinese military and government influence at the company. In addition to producing networking gear and other electronics, it was the globe’s No. 3 smartphone seller last year behind Samsung Electronics Co. and Apple Inc.

Huawei has faced several setbacks in the U.S. this year. AT&T Inc. and Verizon Communications Inc., the biggest U.S. carriers, dropped plans to sell Huawei’s latest smartphones. Then, consumer electronics retailer Best Buy Co. stopped selling Huawei phones, laptops and smartwatches.

Earlier Wednesday, the company dropped a planned dollar-denominated bond sale and delayed pricing a European offering.

Huawei maintains research and development facilities in Texas, New Jersey, California and four other U.S. states, all of which provide technology for Huawei’s global operations.

Despite the setbacks, Huawei said last month that 2017 net income rose 28 percent and that growth in markets from the Middle East to Africa have it targeting record sales of $102.2 billion this year.

— With assistance by Greg Farrell, Beth Thomas, and Lianting Tu

 

[terranMarine]

Lu Kang, spokesperson for China’s Ministry of Foreign Affairs, reiterated at Wednesday’s daily press briefing that China welcomes the visit of US Treasury Secretary Steven Mnuchin to negotiate the China-US trade issue.

US President Donald Trump on Tuesday said Treasury Secretary Mnuchin would head to China to negotiate over the trade dispute within days, but the US and China have yet to reveal details of the visit.

Earlier this week, China’s Commerce Ministry also responded to the report of Mnuchin’s potential China visit after he said he's considering visiting the country to solve the differences over trade.

“A trip is under consideration,” Mnuchin said at a press conference during the International Monetary Fund and World Bank spring meetings in Washington, DC, on April 21. “I am not going to make any comment on timing, nor do I have anything confirmed, but a trip is under consideration.”

Tension has mounted over the past a few weeks between the two countries on trade and intellectual property as both China and the US have proposed tariffs of 50 billion US dollars on each other’s products, and Trump is still planning to impose tariffs up to 100 billion US dollars more on Chinese goods.

Well does the US want a trade war or not?

 

[Brainsucker]

Guys, don't you see it's weird? If the 7 years ban of ZTE is really make this company bankrupt, then why they haven't reduce the number of their employees? I haven't read any news about ZTE decrease their employee. Even until now. While Qualcomm has reduce their employees by 1500 people. I mean Qualcomm has fired 1500 of their employees just after US announce the ban, but why ZTE still not doing anything to reduce the number of their employees significantly?

 

[艹艹艹]