Category Archives: trade policy

Fighting Chinese cyber-espionage could cost U.S. 5G dominance

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As the U.S. government works to neutralize its Chinese counterparts’ efforts to conduct surveillance via commercial telecom products, it may unintentionally jeopardize the United States’ bid to beat China to a nationwide 5G network.   This summer, U.S. officials, policymakers and allies have cracked down on Huawei and ZTE, two large Chinese smartphone and telecommunications equipment manufacturers. The pair are believed to have a cozy relationship with the Chinese Communist Party and People’s Liberation Army. Washington fears that relationship could lead Beijing to tap into equipment owned by those companies to siphon sensitive information and possibly lay the groundwork for cyberattacks.   But many industry, trade and technological experts are worried the measures may come at a steep price. The quest to upend China’s surveillance capabilities may be hurting America’s competitiveness in the race to develop and roll out 5G wireless technology. The dilemma presents the latest — and perhaps fiercest — technological showdown between Washington […]

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As defense bill approaches finish line, future of Chinese company ZTE hangs in the balance

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When House and Senate negotiators sit down next week to iron out their differences in the annual defense bill, the fate of Chinese telecom giant ZTE will be a key issue. Select lawmakers from both chambers are headed to a conference committee to reconcile the House and Senate versions of the National Defense Authorization Act (NDAA) for fiscal 2019. One notable discrepancy is ZTE-related language: Broadly speaking, the Senate version calls for stricter rules that would curtail the Chinese company’s ability to do business in the U.S.. The House NDAA would restrict the Department of Defense and its contractors from procuring equipment from Chinese telecoms ZTE and Huawei. The Senate version, taking stock of ZTE’s continuous flouting of U.S. sanctions, would explicitly block ZTE from doing business in the country writ large. The Senate’s version of the NDAA, with the ZTE ban tucked into it, passed with broad bipartisan support, 85-10. […]

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American companies protest FCC pressure on Huawei

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In the face of regulatory pressure from the U.S. government, Huawei, a Chinese telecom company at the center of long-running cyber-espionage allegations, is flouting its apparent American beneficiaries. “Ripping out and replacing” a raft of Chinese-made telecom gear from existing U.S. infrastructure won’t be easy, a group of regional U.S. telecommunications companies protested to the Federal Communication Commission (FCC) this week. Trade groups representing these smaller American service providers have joined with Huawei in slamming the FCC’s proposal to ban American telecoms from using federal subsidies to purchase Chinese-made equipment, based on messages shared with the agency. In a second wave of comments filed to the FCC on Monday, Huawei defended itself, writing that its products do not pose security risks, that the opposition to its American presence is driven by protectionism and economic competition and that its American clients choose its products because they are cheap, reliable and effective. Huawei cited roughly a dozen other entities […]

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U.S. poised to deny China Mobile access to American market due to spying fears

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On Monday, the Trump administration moved to block a large Chinese telecommunications company from entering the U.S. market, recommending that its application be rejected on national security grounds. China Mobile, the world’s largest mobile operator, had sought to move into the U.S. cell phone and communication services space. In 2011, the company filed an application to U.S. regulators at the Federal Communications Commission for a license to do business in the United States. In a statement released Monday, the National Telecommunications and Information Administration (NTIA) announced that the Federal Communications Commission (FCC) should deny China Mobile’s application. “After significant engagement with China Mobile, concerns about increased risks to US law enforcement and national security interests were unable to be resolved,” David Redl, the assistant secretary for communications and information at the Commerce Department, said in NTIA’s statement. The NTIA is an arm of the Commerce Department that advises the White House […]

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Electronics Manufacturers React To China Trade Tariffs

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Mere weeks ago, the United States announced it was set to impose a 25% tariff on over 800 categories of Chinese goods. These tariffs include nearly every component that goes into the manufacture of any piece of electronic hardware, from resistors to capacitors, semiconductors to microcontrollers, and even the raw components that are turned into printed circuit boards. These tariffs will increase the cost of materials for electronics, even if those electronics are ultimately manufactured in the United States because suppliers and subcontractors must source their materials from somewhere, and more often than not, that place is China.

Now, manufacturers …read more

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Electronics Manufacturers React To China Trade Tariffs

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Mere weeks ago, the United States announced it was set to impose a 25% tariff on over 800 categories of Chinese goods. These tariffs include nearly every component that goes into the manufacture of any piece of electronic hardware, from resistors to capacitors, semiconductors to microcontrollers, and even the raw components that are turned into printed circuit boards. These tariffs will increase the cost of materials for electronics, even if those electronics are ultimately manufactured in the United States because suppliers and subcontractors must source their materials from somewhere, and more often than not, that place is China.

Now, manufacturers …read more

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Cyber CEOs urge NIST Framework be made a part of NAFTA talks

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Ten major cybersecurity companies have written to the U.S. Trade Representative Robert Lightheizer to urge that alignment of cybersecurity standards — and the use of risk management tools like the NIST Cybersecurity Framework — should become part of the re-negotiation of the North America Free Trade Agreement that started this week. “The government … needs to step up to the plate” in international affairs where cybersecurity is concerned, Amit Yoran, CEO of Tenable, and one of the letter’s signatories, told CyberScoop. The other companies signing on are Rapid7, Arbor Networks, Bugcrowd, CA Technologies, Cybereason, Forescout, McAfee, Mimecast and Symantec. “Trade issues related directly to the U.S. cybersecurity industry are absent” from the lengthy list of U.S. negotiating objectives in the NAFTA rewrite released by LightHeizer’s office, the letter complains, while welcoming the inclusion of objectives related to digital trade more generally. That omission is especially damaging, the letter suggests, because “Numerous countries are currently considering or […]

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Chinese hacking unit spied on U.S. trade group ahead of Trump meeting, security firm claims

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A prominent trade organization involved in economic policy discussions with the Trump administration was the target of a digital espionage operation with ties to the Chinese government, according to new research gathered by Fidelis Cybersecurity. The news comes as President Donald Trump prepares to meet Thursday with Chinese President Xi Jinping for the first time. The hacker group at the center of Fidelis’ report is known in the security research community as APT 10 — an elite unit with ties to China. One of APT 10’s signature spy tools, dubbed “Scanbox,” was found lurking on several webpages owned by the National Foreign Trade Council, including a digital registration form. The registration page is used by guests to schedule meetings and sign up for NFTC events. The organization says it has about 300 member companies. However, due to Scanbox, when a victim would visit the organization’s registration page they would be served reconnaissance […]

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