Sunday, June 24, 2018

Huawei history in USA

  Our open innovation research model includes working with ICT experts at America’s elite research universities, including Harvard, MIT, Stanford, UT Austin, UC Berkeley, University of Michigan, University of Maryland, and North Carolina State. Between 2006 and 2011, Huawei’s U.S. revenues grew 26-fold, from $51 million to approximately $1.3 billion.  At the same time, its R&D investment in America increased 15-fold, from $16 million to $230 million.   http://usahuawei.com/huawei-in-america/university-partners/
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  Huawei was the recipient of billions of dollars in lines of credit from China’s state-owned policy banks, helping to fuel its overseas expansion in Africa, Europe and Latin America.  Its founder, Ren Zhengfei, is a former engineer (for 10 year) in the People’s Liberation Army.
The United States government has long regarded the company with suspicion, and lawmakers have recommended that American carriers avoid buying the network gear it makes.  In January, AT&T walked away from a deal to sell a new Huawei smartphone, the Mate 10.
United States officials are investigating whether Huawei broke American trade controls by dealing with Cuba, Iran, Sudan and Syria.   https://www.nytimes.com/2018/06/05/technology/facebook-device-partnerships-china.html
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4-17-18  Huawei’s tactics are changing as its business prospects in the United States have darkened considerably.  On Tuesday, the Federal Communications Commission voted to proceed with a new rule that could effectively kill off what little business the company has in the United States. Although the proposed rule does not mention Huawei by name, it would block federally subsidized telecommunications carriers from using suppliers deemed to pose a risk to American national security.
Like other major tech companies, whether American or Chinese, Huawei (pronounced “HWA-way”) has been caught in the crossfire as the Trump administration ratchets up efforts to stop China’s high-tech ambitions.  The two countries are waging a new kind of cold war, and with each increasingly suspicious of the other’s technology, winners are chosen based on national allegiances.  https://www.nytimes.com/2018/04/17/technology/china-huawei-washington.html
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3-6-18    Congress effectively barred major carriers from using Huawei, after a 2012 report concluded Beijing could force Huawei to use knowledge of how its own equipment is designed to spy or disable telecom networks.
A Huawei spokesman said the company is employee-owned, and that no government has ever asked it to spy on or sabotage another country.   https://www.wsj.com/articles/why-washington-is-so-obsessed-with-chinas-huawei-1520373341
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-Huawei mediapad, 2013
4-24-13  Huawei emerged as the world’s second-largest maker of networking gear thanks to growth in China, Europe, and emerging markets.  The U.S. business is a different story.  Just $1.3 billion of its estimated $35 billion in 2012 sales came from America.  Now, amid rising congressional concerns about Chinese government-sanctioned hacking, Huawei may lose one of its most important stateside customers:  Level 3 Communications, which runs a massive broadband network that helps carry traffic for most telecoms. JMP Securities analyst Erik Suppiger estimates that the Broomfield (Colo.)-based carrier has bought $200 million in optical networking gear from Huawei since 2009.  It’s soliciting bids for its next three-year order, and Huawei isn’t likely to win, say two people who have spoken with Level 3 about its intentions but weren’t authorized to discuss them publicly.  “There’s no way Level 3 will possibly select Huawei,” says Andrew Schmitt, an analyst for Infonetics Research.  https://www.bloomberg.com/news/articles/2013-04-24/is-huawei-giving-up-on-the-u-dot-s-dot-pretty-much
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7-28-2011   To work on its image in Washington, Huawei engaged the lobbying firm of former Defense Secretary William Cohen.  (Cohen under Clinton was extremely friendly to PRC.)...
But the assertion of a complete separation between the Chinese government and private Chinese companies is not terribly convincing to the cybersecurity community, according to Adam Segal, a China expert and senior fellow for counterterrorism and national security at the Council on Foreign Relations.  Beijing last year forced all government suppliers to turn over their encryption codes.  Beijing also dangles the threat of corruption investigations to keep companies in line, even executing executives convicted of graft. ...
Huawei has set up 12 branch offices and seven R&D centers in the U.S., including a brand-new research center in Santa Clara, Calif., and now employs more than 1,100 people in the U.S., 75% of them Americans (some 200 Huawei employees in the U.S. have come from China)....
former vice chairman of the Joint Chiefs of Staff, Adm. Bill Owens, who also was once CEO of Nortel Networks.  “In my view it was a serious mistake for America not to [have had Sprint award Huawei the business],” says Owens.  “They’re opening all their source code to Sprint, to the U.S. government, to everyone.  At Nortel, I never would have opened the source code to anyone, especially not the U.S. government.  This is so compellingly wrong in the way this has happened.”...
Then there’s Level3 Communications (LVLT, +0.00%) — which operates secure-channel communications for over 200 government agencies, is a U.S. defense contractor, and forms what is called the backbone of the Internet, an IP transit network across the U.S. and Western Europe.  That Level3 has purchased Huawei equipment is confirmed by industry sources and analysts, even though neither company has ever announced any deals. “It’s base stations, core switching equipment — the kind of stuff that really ought to keep people up at night,” one source says.  Level3 responds that customer confidentiality is its highest priority, but that it does not “comment further on network security” issues.  http://fortune.com/2011/07/28/what-makes-china-telecom-huawei-so-scary/
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7-20-09    As for the potential security concerns about Level 3 running U.S. federal government traffic over a network built with equipment from a Chinese vendor, Notter states that "Level 3 could get around the national security issue by guaranteeing that government traffic stays on Infinera equipment while new, non-governmental traffic rides on the Huawei gear." 

Level 3 has not yet responded to Light Reading requests for comment....If Huawei gets its foot in the door at Level 3 it won't come as a major surprise to some:  Heavy Reading analyst Sterling Perrin stated recently that, having already landed a few small optical deals in North America,  "it is not difficult to imagine Huawei working its way into bigger networks over time." (See Huawei Gains Optical Ground in North America.)   https://www.lightreading.com/optical/dwdm/is-huawei-in-at-level-3/d/d-id/669314

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