Huawei with you! FCC's American Pai proposes rip-and-replace of scary Chinese comms kit Ajit Pai, chairman of the US Federal Communications Commission (FCC), has devised a two-part scheme to erase Chinese hardware from American telecoms networks. Firstly under the proposal, telcos would be forbidden from using any money from Universal Service Funds (USF) – a system of telco subsidies and fees overseen by the FCC …
"Chinese law requires all companies subject to its jurisdiction to secretly comply with demands from Chinese intelligence services"
Does it not occur to Mr Pai (or anyone else in the US Gummint for that matter) that this would include the chip fabs (like TSMC) where virtually every bit of silicon tech in the world is manufactured?
Not to give anyone any ideas, but if I were the Chinese, the last companies I'd target would be Huawei or ZTE.
We need to make sure our networks won't harm our national security, threaten our economic security, or undermine our values. The ChineseUnited States government has shown repeatedly that it is willing to go to extraordinary lengths to do just that
FTFY.
It's not like Cisco kit isn't also full of bugs and backdoors, and the US government has, on many occasions, demonstrated that it's prepared to (often illegally) snoop on networks. 'cos, security or something.
Offering to buy back Huawei kit demonstrates a push towards their policy of Buy USA. Leave 'em to it, and let the rest of the world get on with better or cheaper providers.
This is a protectionist racket to ensure that Cisco gets as big a slice of the pie as possible, nothing more.
"We need to make sure our networks won't harm our national security, threaten our economic security, or undermine our values. The Chinese government has shown repeatedly that it is willing to go to extraordinary lengths to do just that."
Funny how they never have actual citations, as requested by other 'foreign powers', for that quote ...
I'm trying to pick a hole in your replacement of "Chinese" with "United States" in the original quote and, based on "We" being one of several non-US Governments - the European Community being one - I really can't.
Networks could continue to use any equipment already in place, but not make new purchases or spend USF dollars to maintain or improve that equipment.
I don't see the problem with this as long as there are compatible U.S. made components.
It's the same reason most police units in the US drive Chevy/Ford/Dodge. Why would you want your tax dollars to be funneled to Japan so that the cops can drive Camry's? If the government has to spend the money, the least they can do is re-invest it into the same society they borrowed it from.
Now, if the choice was between a Nissan Z 300 or a Ford Fiesta, then maybe it's not the government's fault the US company isn't competing. I don't know where US companies stand on 5G development, but surely there's an option.
China does buy a lot of US bonds, yes, but I fail to see why that should entitle them to be the preferred supplier for US Government purchases. There's an old saying that covers this:
When you owe a man ten dollars, It's your problem.
When you owe him ten million dollars, it's HIS problem.
Oh, not to worry, they Chinese are dialling back that debt exposure because they don't want to lose that much money when they start flexing their muscles on the currency and energy market.
The dollar is screwed, it will just take a few more years for that to become visible. However much fun it would be to blame Trump for it, that would not be entirely accurate - he merely accelerated the process with his boneheaded decisions.
Ah, but that's the joy of being anonymous.
Besides,
(a) that data is out there for anyone who understands what drives currencies but
(b) you do need to know where to look as I would agree it's not entirely obvious - the issues come a bit from left field (it surprised me too when I spotted it)
(c) I'll write a proper article about it some day. Until then, keep looking. Consider it a challenge.
"Why would you want your tax dollars to be funneled to Japan so that the cops can drive Camry's?"
Because when you have a trade agreement with a trade partner, part of that agreement typically includes equal access to procurement (which is why, for example, government tenders in EU countries have to be issued EU-wide). In many public procurement cases, 'locality' of the supplier should not (sometimes by law, sometimes by policy) be given precedence, although in practice many times it is. The idea is that the taxpayer gets more bang for their buck and if a non-local supplier can deliver the requirements cheaper, they should be preferred.
It's actually not that straightforward... awarding these contracts locally is certainly more beneficial for the locality even if it's more expensive, since money spent locally is circulated over and over in that locality. I don't understand the US cops driving Chevy/Ford/Dodge vs Toyota though, since those Toyotas are made in the US anyway
> tax dollars to be funneled to Japan so that the cops can drive Camry's
The Camry is probably made in Kentucky while the Ford is probably made in Mexico.
The cops in our area -- both local and CHP -- have replaced their Crown Victorias with Police Interceptor Ford Explorer SUVs. These are 'assembled' in Chicago but where the components come from is anyone's guess.
>I don't know where US companies stand on 5G development, but surely there's an option.
AFAIK they're not in the running for any infrastructure gear. Given time they might be able to ramp up and become competitive but there's a serious shortage of engineers and we're not importing any (nobody in their right mind would come to the US on an H1-B these days unless they're desperate, we're not taking people from Iran and being Chinese can be like skating on thin ice these days).
When it comes to 5G and America's surveillance programs, we can't afford to take a risk and hope for the best. We need to make sure our networks won't harm our blanket surveillance of citizens, threaten our economic house of cards, or undermine our control of the proles. The opposition has shown repeatedly that it is willing to go to extraordinary lengths to do just that. And US law requires all companies subject to its jurisdiction to secretly comply with demands from the intelligence services. As the United States upgrades its networks to the next generation of wireless technologies – 5G – we cannot ignore the risk that that the public will be able to avoid the network vulnerabilities we planted in Cisco equipment in order to engage in espionage, insert malware and viruses, and otherwise spy on all critical communications networks.
FTFY Pai-face
"companies posing a national security threat..."
Funny how they only became a national security threat when Trump started his trade war.
Those in the UK and Germany who actually looked at Huawei's devices / software in very fine detail have found nothing deliberately wrong (buggy code is, alas, par for the course).
The US just spouts platitudes but, of course, cannot point to any backdoors because there aren't any. meanwhile US is at the forefront of insisting everyone else creates backdoors for them to access
I'm surprised that a bunch of IT people are so sanguine about the potential threat of Chinese-made infrastructure equipment to the US.
Since Snowden, China has been equally suspicious of allowing Cisco gear on their networks, for the same reasons that the US is suspicious of Huawei and ZTE. Imagine the disruption that would result if Chinese routers had a secret remote kill switch; in the event of a conflict, that could be a massive tactical advantage. And of course, the same is equally true of US-made gear in their infrastructure.
Remember, China is playing the long game in a way that democratic societies with non-command economies are unable to emulate. By building an amazing supply chain and becoming Sweatshop to the World, they have steadily eroded the ability of Western nations to manufacture high-tech products themselves. They require Western tech companies that manufacture in China to "share" technology with them. And starting in January 2020, non-Chinese companies will no longer be able to use private VPNs to shield their internal communications from the Chinese government.
The Chinese have repeatedly engaged in deep hacking of US systems, and the relationship between the two countries has deteriorated in recent years. Yes, much of that deterioration is due to Trump's dick-swinging; but Chinese hacking, cyber attacks, and the long-term strategic moves noted above precede Trump.
So yes, Trump is a dangerous idiot. Yes, Ajit Pai is a soulless shill who is completely in the thrall of his former employers. But that doesn't mean Chinese telecom equipment is not a potential threat to US infrastructure.
You have a valid point that the US ought to be suspicious of other nations, but then you ask the question of where Cisco stuff (and most "USA company") is built? Yup, in China and or with Chinese made parts because it is more profitable. Sadly the US corporations have sold themselves and the USA's ability to avoid any foreign influence years ago for quick profit.
Now if all of the brouhaha over Huawei had been backed with a demonstration of a back door, or if the USA could throw the stone of "secret gov coercion" without breaking its own FISA glass windows, we comentards would not be so flippant in mocking these moves.
I'm surprised that a bunch of IT people are so sanguine about the potential threat of Chinese-made infrastructure equipment
As a member of the Rest-of-the-World, I'm much more worried about the actual threat of American made infrastructure equipment, than I am about the potential threat of Chinese made kit.
Oh, and Huawei are the acknowledged leader in 5G technology, there is nothing US made which comes close.
"I'm surprised that a bunch of IT people are so sanguine about the potential threat of Chinese-made infrastructure equipment to the US."
Maybe because they are a tiny bit more educated?
The US has always needed an "enemy" from the "Yellow Peril", to the "Red Scare" and back to "Yellow Peril". God knows why a nation built on freedom and the Christian faith needs to hate so much?
Until our hero Snowden opened our eyes, the Five Eyes or Echelon group were leading the way in amoral activity and breaking the law.
No Government can be trusted, the only difference now is the cat is out of the bag and everyone but everyone now knows what they can and do daily.
How many of us remember the headlines when the GCHQ leaked the fact that they were listening to Diana, Princess of Wales' 1992, 20-minute cell phone conversation between her and childhood friend James Gilbey?
Spying on world communications was a British first of all world governments, not something we should be proud of.
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