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US Government Probes Huawei and ZTE

judgecorp writes "Two leading Chinese telecoms companies, Huawei and ZTE, are under investigation for possible spying in the U.S. A government committee says the companies may be stealing U.S. economic secrets, and use of their equipment might open U.S. infrastructure to espionage."

39 of 122 comments (clear)

  1. Spying Char? by Chris+Mattern · · Score: 2, Funny

    The Chinese government is not in charge of Gundam!

  2. Well... by Anonymous Coward · · Score: 2, Funny

    I would have used a spying int, but that's just me.

    1. Re:Well... by LizardKing · · Score: 2

      Just make sure you avoid floats - they're noted for their inaccuracy.

  3. Duh! by DontBlameCanada · · Score: 4, Informative

    Huawei is a Chinese government funded company. I'm sure the funding isn't charity.

    I would've thought after Huawei was caught stealing cisco tech (http://newsroom.cisco.com/dlls/Cisco_Mot_for_PI.pdf), that they'd be blackballed for any government network deployments.

    1. Re:Duh! by Joce640k · · Score: 4, Insightful

      Yeah, but every single country in the world does this. Including the USA (the USA is actually one of the worst, it's not even government level stuff, it's handing Airbus secrets to Boeing so they can compete, stuff like that).

      Why all the stories about Chinese spying...? It's just more smoke and mirrors to give the population something to focus on other than the government's failure.

      --
      No sig today...
    2. Re:Duh! by robmv · · Score: 3, Insightful

      That USA do this does not means that they must allow the Chinese to do it, vice versa is true too, spying is not something that follows reciprocity

    3. Re:Duh! by Anonymous Coward · · Score: 2, Informative

      Google for "echelon."

    4. Re:Duh! by Alarash · · Score: 2

      Every Chinese company has to be owned at least at 51% by their government. They are communists, remember?

      I'm not feeling bad one bit for Cisco. They wanted to cut costs by outsourcing in China, and it bit them in the ass. They settled out of court so we don't know what the end deal was, but the word around the campfire is that Cisco now gets paid any time Huawey sells something.

    5. Re:Duh! by joocemann · · Score: 4, Insightful

      No. The frequency by which China can be indicated in espionage is a tell of the size of their collection eforts.... MASSIVE.

      You hear about espionage on their part every couple weeks. Nearly every espionage related incident originates from the same source. It is reckless to assume its because they have poor tradecraft and get caught. A better and more real assumption is that the freq of esp. Being caught is a tell of the overall size.

    6. Re:Duh! by Joce640k · · Score: 4, Informative

      It's a pretty famous case*, a special European commission was even formed to investigate it.

      For the lazy: http://cryptome.org/echelon-ep-fin.htm

      [*] ie. a Google for something like "nsa boeing airbus" would have found a cite in seconds

      --
      No sig today...
    7. Re:Duh! by davester666 · · Score: 2

      No, the frequency by which China can be indicated in espionage is a tell of WHERE YOU ARE STANDING AT THE TIME.

      Depending on where you stand, any number of countries will be the one that spies the most.

      --
      Sleep your way to a whiter smile...date a dentist!
  4. Economic Secrets? by Anonymous Coward · · Score: 5, Funny

    The best way to compete with China is probably to give them all the secrets to our current economy and hope they use them.

    1. Re:Economic Secrets? by Anonymous Coward · · Score: 5, Insightful

      The US economy is actually working great. You might be under the false impression that you're one of the people it's intended to work for. But the people who have 10,000 times your income couldn't be happier.

    2. Re:Economic Secrets? by elgeeko.com · · Score: 2

      Actually, it's the people with 10,000 times our income that are having the big problems. It all stems from greed, crooked accounting and poor business practices. The problem is the upper class defrauded their way into wealth and now it's catching up with them and as a result the problems are trickling down to us. Sadly, a lot of the 'super-rich' are broke and they're just now realizing all of their wealth was built on lies and deception. I have a friend with a supposed net worth over 10 million, last week I had to buy lunch because he's broke. Sure, he's "worth" a lot, but he has almost no liquid capital and his net worth is shrinking fast, which means his investments are costing him money, not making him money.

    3. Re:Economic Secrets? by Anonymous Coward · · Score: 2, Funny

      Lol, he's super rich because he knows how to save his money by getting suckers like you to pick up his tabs!!!

    4. Re:Economic Secrets? by elgeeko.com · · Score: 2

      He doesn't have any money. He has a lot of assets, but no cash. You can't go to McDonalds and buy lunch with the title on a strip mall. Those assets cost him a lot of money each month to keep, more than what they're currently bringing in. In order to have cash to maintain his assets, pay his utilities, buy groceries or pick up lunch he has to sell assets (which were once income producing and are now income draining). Do you know how hard it is to sell an asset that is bleeding money? He has to sell way below "value" and his 'profit' is taxed at the highest level (unless he reinvests, which he can't do because he needs the funds). He might be "worth" 10 million on paper, but his assets aren't really worth that, some of his assets have debts attached to them, he might be able to make just enough money selling everything to end up only 250k in debt, if he's really lucky. His annual income was negative 3 million last year. You think it's hard putting food on the table when you make 20k a year, try feeding a family on negative 3 million. One last comment; being worth 10 million in assets doesn't even come close to "super-rich", in fact you missed the whole point, he's flat ass broke and close to liquidating just so he'll end up with ONLY a quarter of a million in DEBT.

    5. Re:Economic Secrets? by vux984 · · Score: 3, Insightful

      He might have 10 million in assets, but if he has 10.25 million in liabilities than "on paper" he's in the hole a quarter million bucks.

      The whole "worth a lot on paper" idiom generally refers to people who actually are worth a lot, but have no liquid cash. Typically, they can get liquidity by selling a few assets... presumably well below market value, since the assets aren't all that liquid... but he'll still end up way ahead of zero. WAY AHEAD.

      Your friend sounds like he's bankrupt on paper, but in practice is ahead of most bankrupt people because at least there is a chance his investments will turn around and pull him back into the black.

  5. Spying char by Chrisq · · Score: 2

    US Government Probes Huawei and ZTE On Spying Char

    IS that a new brand of Chinese tea "spi ying char"

  6. Competing interests by Manip · · Score: 2

    The US might be doing this for honest reasons but then again they might be doing this because US based communications manufacturers are unhappy with companies like ZTE undercutting them using the free and Open Source Android OS.

    I bet US based companies can find tons of patents that Chinese companies are infringing. But then again many of these patents are overly broad and are largely being used in an anti-competitive way.

    Plus the whole accusation of spying, unless shown to be true, I read as akin to "buying from China isn't patriotic." If the US had evidence of ZTE spying on them you sure as hell would be reading about it right now.

    1. Re:Competing interests by Anonymous Coward · · Score: 5, Interesting

      I used to work for Ericsson, now I work for Alcatel-Lucent, both at US offices, but not US companies. One of the things we've noticed is anywhere one of those two companies opens an office, shortly after, huawei opens an office within 10 miles. I swear it's true. Right now I'm sitting less than 5 miles from one of their office, at my old office, the story was the same, and remember the ericsson and alcatel offices are only 50 miles away from eachother, yet huawei has two, one close to ericsson, one close to alcatel. We started keeping track once we noticed at first. When at Ericsson, we'd always laugh that when we published our roadmap, 2 days later huawei would publish theirs, and it'd look similar so we started screwing with our roadmaps. I understand that in slashdot it's popular to go "ohhh evil amerika!!!!!!!!!!! they do it two!!!!!" but really, the behavior of chinese companies is more than a little suspect.

  7. Experience with my Huawei router by FTWinston · · Score: 4, Interesting

    It was free with our ISP, so don't judge me. (We're with TalkTalk in the UK ... ok, do judge me.)

    It used client-side validation only to determine whether or not I was entering a valid port to forward to. By copying the admin page to my local machine and updating the target, I was able to remove the validation and set up my port forward to .255 ... I managed to resist the urge of setting up a forward to something actually invalid, in case the router completely died on me.

    If the guys that made my router are spies ... they're not very good.

  8. No good can come from this by MikeRT · · Score: 5, Insightful

    The People's Republic of China is a totalitarian state and most of its "private industry" is a facade for their civilian government or military. They routinely get caught with massive espionage operations in other countries. Whatever good that can from theoretically lower prices are negated by everything else that'll come with their increased role.

    Even if the federal government so thoroughly separated itself from the telecommunication system that the NSA spy scandal was not even remotely possible, letting China get its tentacles deeper into our country's workings is asking for a lot of trouble. If in time they establish a backbone connection to Asia, you can bet your ass their spy agencies will be tapping it harder than a keg of top grade beer at a college party.

    1. Re:No good can come from this by Anonymous Coward · · Score: 2, Insightful

      Yes, because the scope of a country as large as China can *SURELY* be comparable to the smaller scope of Davis, California, USA. Wait, UC Davis is a country????

    2. Re:No good can come from this by hedwards · · Score: 4, Interesting

      Oh, please, compared with the rights abuses in China that's not even worth mentioning.

    3. Re:No good can come from this by Anonymous Coward · · Score: 2, Insightful

      Even though there are some incidents in the US (we are not perfect by any means), it is nowhere near the level of China(although it seems to be moving in that direction currently). If Occupy was operating in China, the leaders would likely be imprisoned. I am getting tired of poor comparisons.

    4. Re:No good can come from this by Squidlips · · Score: 2

      That posting is a classic example of the Chinese Water Army...trying to flood out any criticism of China.

  9. Please Clarify Your Post Title by shuttah · · Score: 2

    Huawei and ZTE have not done any industrial espionage that we know of (or espionage of any kind, for that matter). Nor is the investigation by the House of Representatives’ intelligence committee, in fact, concerned with any espionage done by either Huawei or ZTE. Also, it should be noted that Huawei have opened their hardware to inspection by the British government. Inaccurate post titles like these come at the expense of discussion, since less and less people are actually reading the stories posted here. As was previously posted, the concern here is what malevolent capabilities a Huawei network would give groups like the People's Liberation Army with whom they have alleged ties to.

    1. Re:Please Clarify Your Post Title by MadMaverick9 · · Score: 2

      use of their equipment might open U.S. infrastructure to espionage

      makes one wonder what U.S. equipment (made by cisco, microsoft et.al.), which is used all over the world, can do for U.S. govt agencies.

      anybody remember japan in the 1970s?

    2. Re:Please Clarify Your Post Title by shuttah · · Score: 3, Interesting

      Interesting.

      I don't think the immediate characterization of Huawei as a puppet to Beijing is altogether justified, seeing how here in America we have SPECIFIC branches of the government - like the CIA - making donations to stateside companies - like Facebook.

      The CIA donates to a social network (facebook) = China blocks the network (Facebook).

      Then America calls it censorship.

      But when Beijing donates ($8 Million) to Huawei and America blocks it...

      America says it's National Security?

  10. Industrial espionage by girlintraining · · Score: 5, Interesting
    Everyone is so concerned about China, but wouldn't you know, France is so well-known for industrial espionage that executives for pharmaceuticals and large companies are told not to use fax machines in hotel rooms because the lines are monitored, or send unencrypted email, etc. Laptops not only aren't allowed to be left unattended, most people in the know won't let sensitive information be left on them -- encrypted or not.

    Everyone acts like China invented industrial espionage. Well, they didn't... they're just really bad at it, which is why everyone is noticing them. First rule of effective espionage: Don't suck.

    --
    #fuckbeta #iamslashdot #dicemustdie
    1. Re:Industrial espionage by hedwards · · Score: 2

      To be fair, most of those practices should be much more prevalent than they are. I mean how many times do customers have to have their identities stolen because of sloppy handling of PII?

    2. Re:Industrial espionage by WindBourne · · Score: 2

      France does industrial spying. Chinese firms are more interested in spying on industry AND western gov. There is a big difference. China is in a cold war with the west. France is not in a cold war.

      --
      I prefer the "u" in honour as it seems to be missing these days.
  11. Re:Sounding more like Microsoft! by boristdog · · Score: 2, Funny

    This sounds like a preface from APPLE'S playbook.

    FTFY.

  12. Spying, Pffft by NetNinja · · Score: 2

    Everytime I hear a story about the Chinese spying I want to smack the shit out of someone. The U.S. has caused itself so much harm in the outsourcing of every fing thing ever manufactured. The outsourcing of Electronics manufacturing is by far the most damaging thing the U.S. and companies who have looked for cheaper and lax regulatory laws on everything from pay scale to EPA violations.
    I won't even get into the discussion of Labor Unions.

    I don't want to hear anymore stories about Chinese spying. They have infiltrated just about everything in the U.S.

    Where is most of this high tech computer security gear manufactured? Cisco gear is all made in China and don't think they don't have spies working in those other factories that are strewn all over Asia.
    The U.S. ships all our used comuter gear all the way to China and then they have people removing the chips and sorting them and then reselling them to other companies namely U.S. contractors who are cheating the system and selling off the shelf chips as hardened components to be used on military systems.

    China has taken a 20 to 30 year jump in just military technology alone. They have done this in less than 15 years. Thier submarines, thier Aircraft and now thier Satellitle technology is on par if not better than U.S. systems.

    No More Spying Stories!

  13. Huawei and Ericsson by Anonymous Coward · · Score: 4, Interesting

    I used to work for Ericsson in Sweden, and it was a well know fact that Huawei stole a lot of research material from the company. There was a case were a Chinese employee was caught hard copying (-as in Xerox) several research papers (I don't remember all of it, but I think even the Chinese embassy was involved).

    One of the few things Ericsson has going for them is their research (since their services division is a joke and doesn't bring any substantial revenue for the company), but if this continues they will be dead on the water in 10 years time.

    Funny thing about all of this is that Ericsson has a research center in China, from where they bring those 'employees' who end up getting the info for Huawei.

  14. People like you are part of the problem by MikeRT · · Score: 2

    take a close look at yourself first before judging other countries.

    To even compare the US with China on these grounds does nothing but make them look less evil by comparison. It's like telling someone who spanks their children a little too much to "clean up their own house before passing judgment" on someone who beats the ever loving shit out of their kid on a weekly basis.

  15. Huawei is well known to be a spy wing for China by pkphilip · · Score: 2

    The Indian intelligence agency Research and Analysis Wing (RAW) put out a notice in 2010 claiming that Huawei is involved in spying for the Chinese government.
    http://articles.economictimes.indiatimes.com/2010-05-07/news/27580384_1_chinese-telecom-huawei-technologies-ren-zhengfei

  16. Be carefull what you wish for... by williamyf · · Score: 2

    Huawei has been asking for some time for a public inquiry about these alledged ties with the red army, istead of being stonewalled in their initiatives with what they call excuses.

    Having said that, be carefull what you wish for, now they have the govt probe they requested, if the allegations are found to be true, all hell will break lose.

    The probe is not only to see if chinese makers are spying, but also to see if the relevant intel agencies in the us are capable of detecting the spionage, as well as countering it.

    Full idsclosure: I worked in Huawei for a year.

    Clarification: Not many people know, Huawei does not trade in any stock exchange (so, less scrutiny and compliance burden, they have IIRC KPMG auditing their stuff, but the stuff is never published), but, allegedly, there is no govt participation in it. On the other hand, ZTE trades in some exchanges (mainly shangai), so there is more transarency, but the chinese govt. owns something along the lines of 20~30% of the shares.

    --
    *** Suerte a todos y Feliz dia!
  17. China takes over the world by WaffleMonster · · Score: 2

    I have it on good authority the chinese shall soon be seeking to propogate an order 66 TLV throughout BGP after which control of the minds of the entire worlds population are instantly placed under direct control of the chinese empire.

    TSMC has been secretly injecting mind control antennas in a secret metal layer of every chip they've stamped over the last decade just waiting for the command... Huawei, ZTE and Lenovo are just the tip of the iceburg. We are already doomed..their antennas are in every recent device with a processor on the planet. All of the tools that can be used to detect them were the first to have been compromised.