back to article Biden administration pauses ban on Chinese tech companies suspected of military entanglements

The US Department of the Treasury has announced a revision to the ban on trading in companies suspected of having ties to China’s military. A Trump-era executive order barred US investors from conducting transactions with certain Chinese companies, leading to an on-again, off-again New York Stock Exchange ban on trading shares …

  1. _LC_
    Facepalm

    Too late

    Sorry, but they would have to be VERY stupid to fall into the same trap twice. They are heading towards creating their own hard- and software, making sure that there is no element left that could be "disputed".

    In other words: The US and its allies are soon out of (their) business.

    1. Pascal Monett Silver badge

      Re: Too late

      For sure, Trump has brilliantly forced Chinese companies to understand that they need their own tools and market stores.

      The United States will pay that position dearly in the years to come.

      1. Tilda Rice

        Re: Too late

        Agreed. A divisive figure, but his stance on China was probably correct. But you've been downvoted for obvious reasons.

        1. Anonymous Coward
          Anonymous Coward

          Re: Too late

          What stance did he have, exactly? That he could have his Trump-branded crap manufactured there for cheap, and that his family could extract favors from the Chinese government?

          https://www.forbes.com/sites/tommybeer/2020/09/22/ivankas-trademark-requests-were-fast-tracked-in-china-after-trump-was-elected/

          It's amazing how Trump created such word salads that even though he never had any firm stance on anything, his admirers always say something like "I didn't like him, BUT he was so right on this topic I like".

        2. Anonymous Coward
          Anonymous Coward

          Re: Too late

          Google "trump 40 kgb". Trump is just a Russian asset. Proof revealed today.

          1. Yes Me Silver badge
            WTF?

            Re: Too late

            If the Russian or Soviet intelligence services hadn't had a file on tRump for the last 40 years, they would have been delinquent in their duties. I don't think we've seen an atom of proof that he was a KGB asset, however. (That he is, for bizarre unknown reasons, a Putin groupie seems clear, but that's a different matter entirely.)

      2. Anonymous Coward
        Anonymous Coward

        Re: Too late

        I think other countries, like ours, should also take notice. Because ultimately, it was a purely political decision, with zero evidence. As in, it could happen to any other, should the US feel threatened. And in fact, they're already trigger-happy on the tariffs against perceived EU threats, aren't they?

        1. Anonymous Coward
          Anonymous Coward

          Re: Too late

          It wasn't that long ago the UK was using anti terrorism laws to freeze Icelandic bank assets.

          Don't put anything past them.

      3. Yet Another Anonymous coward Silver badge

        Re: Too late

        > Trump has brilliantly forced Chinese companies to understand that they need their own tools and market stores.

        Fantastic - have you seen how good South Africa's home grown military tech was in the 80s

        1. The Man Who Fell To Earth Silver badge
          Mushroom

          Re: Too late

          Yes. South Africa developed its own nuclear weapons. Then gave them up.

          https://www.amazon.com/Revisiting-Africas-Nuclear-Weapons-Program/dp/1536845655

        2. martinusher Silver badge

          Re: Too late

          Its what a Chinese government spokesman recently referred to as "securing the supply chain".

          All Trump did was disrupt the global supply chains. They will just reconfigure around the US. If Trump or any of his cronies had half a clue about how manufacturing works they would have understood this and at least used a bit more finesse in working towards their goals (whatever they were).

      4. Anonymous Coward
        Anonymous Coward

        Re: Too late

        Trump did that? LOL.

        A decade ago, I held in my own hands a counterfeit Cisco switch that included a hardware backdoor that was traced back to China.

        People who favor China's rise in the world should just be open and honest about it.

        What happened to liberalism? We used to demand divestiture from South Africa. Now we praise the genocide in China. It turns out the South Africa just couldn't afford enough lobbyists.

        Notable is the lack of any curiosity on the part of the media about the Biden family relationship with China.

        1. Anonymous Coward
          Anonymous Coward

          Re: Too late

          > I held in my own hands a counterfeit Cisco switch that included a hardware backdoor that was traced back to China.

          I have an official Cisco switch with a backdoor to Langley.

          There's nothing the Chinese govt can do to harm me (short of a nuclear strike on Vancouver)

          The US govt can effectively end my career by putting me on a no-fly list so nobody will employ me if I can never go to CES or DevCon again.

        2. bombastic bob Silver badge
          Devil

          Re: Too late

          A decade ago, I held in my own hands a counterfeit Cisco switch that included a hardware backdoor that was traced back to China.

          A bit worse than outright copyright theft [which I have seen evidence of back in around 2008-ish].

          I was working for a oompan that made antennas, designed in the USA, but made in China and sold to other companies in China. During a meeting they showed (on a projector display) an antenna that had been produced in China, not by a licensed manufacturer. The antenna had similar performance but of course was WAY less in cost. The thing is, the designer of the antenna worked the company logo into the design such that excluding it would de-tune the antenna and ruin its performance. An X-ray of the antenna showed that the company logo was there, underneath the plastic, but "fuzzy" like it had been copied from an X ray of the original.

          But I have not seen cases where software or firmware had been deliberately "back door'ed". I had actually written a lot of that firmware myself, based directly on the SDKs for the chip makers (Broadcom, Atheros, TI, etc.). So I cannot attest to a back door, but I _can_ attest to the copyright fraud. Still, it does NOT surprise me in the least.

          And, being "in the industry", I can definitely understand HOW a hardware back door into one of these embedded systems COULD be done. The fact that it was (apparently) tried at least once should make the rest of us VERY suspicious until complete trust has been ensured.

      5. Anonymous Coward
        Anonymous Coward

        @Pascal Monett Re: Too late

        Since the moderators are extremely bias, any post that questions their world viewpoint gets banned, yet others which agree with their ban and are more insulting seem to be allowed.

        That said...

        The issue w dealing w China is that they either force you into a partnership or just outright steal your tech. Notice the slew of Chinese nationals who have been caught w trade secrets in tech and energy research?

        There's more, but companies are finding alternatives including building more at home.

        Its not just pressure from the Orange Man.

        Take 3M. Minnesota company. But make their N95 masks in China.

        When the Pandemic hit. they couldn't get their products out of China and China took the inventory first.

        Think about that. Then compare KN-95 vs N-95. Quality control isn't there.

        Many masks from China had to be rejected and sent back when possible.

        Trump didn't teach China anything. If you paid attention, they've been planning that from the start. Just waiting for the Western countries to catch on.

        1. diodesign (Written by Reg staff) Silver badge

          "any post that questions their world viewpoint gets banned,"

          I love reading these in public, not banned posts. It's like someone going on Fox News to say they're being censored by the media.

          C.

          1. bombastic bob Silver badge
            Meh

            Re: "any post that questions their world viewpoint gets banned,"

            O...k...

          2. Anonymous Coward
            Anonymous Coward

            @diodesign Re: "any post that questions their world viewpoint gets banned,"

            You 'love to read them in public'.

            Yet the posts that are banned are not read in public which is the point.

            So its a bit unfair to say "Look here's a post that claims we ban things we don't like but follow the rules' yet we see this post. We don't see the posts that are banned so its hard to make an assessment to the actual charge.

            To give you an example... SC GOP just censured one of their GOP reps in Congress for voting to impeach Trump.

            Now the issue... isn't that they voted to impeach, but that they voted to impeach w 10 days left along with a lack of any evidence being presented. (Ah yes, we all know he's guilty... even if he isn't because Orange Man Bad.)

            The problem is that you really can't impeach a man who is already out of office. Justice Roberts didn't sit for it because he already knows what will happen. (Free clue. Its unconstitutional)

            Now nothing in this post violates ToS.

            But what are the odds it gets posted?

            1. Excellentsword (Written by Reg staff)

              Re: @diodesign Re: "any post that questions their world viewpoint gets banned,"

              Swot up on this:

              https://www.theregister.com/2012/02/01/register_comments_guidelines/

              And remember that moderation is at our discretion.

        2. Dimmer Silver badge

          Re: Since the moderators are extremely bias

          I have stated stuff here that would have gotten me banned on Twitter. Posted fine for me.

          1. Clunking Fist

            Re: Since the moderators are extremely bias

            Hi Jack, good to see you're alright.

            1. Anonymous Coward
              Anonymous Coward

              Re: Since the moderators are extremely bias

              If anything, his post was criticising Twitter, not praising it.

        3. _LC_
          Alert

          Re: @Pascal Monett Too late

          "The issue w dealing w China is that they either force you into a partnership or just outright steal your tech."

          One of the reasons for banning Huawei is that they SURPASSED them technologically. How does that compute with your “they just steal everything” allegations?

          1. Yes Me Silver badge
            Headmaster

            Re: @Pascal Monett Too late

            Exactly. However, the productive way of dealing with a competitor who is better than you is to improve yourself. The tRump approach is to declare economic war, which is a lose-lose strategy. I really hope Biden turns out to be smarter than that.

            As others have said, the strategic impact of the tRump blunder (a.k.a. "policy") is that China will build its own high-tech supply chain with no dependency on the US and its unfortunate allies. It will take a few years, but you can be sure that Huawei will not go bankrupt.

          2. Anonymous Coward
            Anonymous Coward

            @_LC_ Re: @Pascal Monett Too late

            Actually they didn't

            Where does the US manufacture 5G telco?

            Free clue... I can't find it.

            Western companies? Nokia?

            The issue was that threat to national security is real.

            But I bet you own a drone which all of your photos and video get sent to a server in China ...

  2. Anonymous Coward
    Anonymous Coward

    Trump 1, America 0

    Trump killed our product sales of American made systems into the China market, but our competitors get their gear made in China and are doing nicely selling their "American" items (but made in China) to the US.

  3. hoola Silver badge

    The entire issue with China is that the West decided to outsource all most all it's manufacturing to China because it was cheaper. This started with low tech stuff and gradually got more high tech as the Chinese got better at producing things. Now this is mostly driven by Western capitalist greed with the goal of maximum profit regardless of the long term implications. There is also an expectation that goods should be cheap as that is deeply linked to the entire way consumerism works, it is cheaper to keep chucking stuff away than fix as well as chucking it away before it is broken.

    Why was it cheaper to produce in China?

    Lower wages

    Lower environmental regulation

    Less regulation on working conditions and health and safety.

    The Chinese probably have "stolen" IP from stuff manufactured there but equally the West does not have a monopoly on smart scientists and researchers. Overall it should be no surprise that they are now producing things that are better than the same item by a "Western" company and they have a lot of very smart people wanting to do better. Industrial espionage if a global issue and is not unique to the Chinese, they just happen to be the main point of focus.

    1. bombastic bob Silver badge
      Unhappy

      the West does not have a monopoly on smart scientists and researchers

      this may be true, but because of the CCP (and things like "social credit score"), it is my impression+opinion that engineers in China tend to defend higher ups or "status quo", even when blatantly wrong, in lieu of taking an initiative and getting things done. It is my opinion that they are fearing for their jobs. Were it not for an NDA I could describe a situation in more detail where an OEM product started to fail after they made an unannounced design change at the factory in China. I assisted in troubleshooting the root cause, and proposed a solution that was a compromise between the old and new designs (it worked perfectly when tested, and many units were retrofitted with the fix). The solution was basically rejected (keep in mind it took the form of a customer request), with no real reason provided, almost like a denial that the problem even existed. Much later the engineers in China made a "fix" that was, in short, like "using a bigger hammer".

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