Published: Tue, January 16, 2018
Money | By Armando Alvarado

Lawmakers said to be behind Huawei's continued U.S. carrier woes

Lawmakers said to be behind Huawei's continued U.S. carrier woes

However, according to the aides, Senators and Representatives want AT&T to halt this collaborative effort with Huawei.

It builds on past action against Huawei (the world's top seller of telecom equipment) and ZTE (ranked fifth), which included a ban on ZTE selling products to the USA government agencies in 2013.

It has already been forced to drop plans to sell Huawei handsets. These include the acquisition of Lattice Semiconductor by the Chinese-owned Canyon Bridge Fund and the proposed acquisition of MoneyGram by China's Ant Financial. Even the use of Huawei handsets by AT&T's Cricket subsidiary is believed to be not acceptable.

The Huawei issue drew the attention of the Chinese foreign ministry, which said that "we hope that China and the United States can work hard together to maintain the healthy and stable development of trade and business ties".

AT&T declined to comment but said that it had made no decisions on 5G suppliers.

National security experts fear that any data from a Huawei device, for example about the location of the phone's user, would be available to Chinese government intelligence services.

Aerospace supplier GKN faces takeover bid
In its own statement on Friday, GKN had confirmed its intention to separate its aerospace and automotive divisions. The firm has 160 manufacturing locations, including East Cowes, and employs 58,000 people across its sites.

During 2012, both ZTE Corp and Huawei were investigated by the US about whether equipment from the two provided any opportunity for threatening critical infrastructure in the USA, which Huawei has always denied. "The next wave of wireless communication has enormous economic and national security implications", said Michael Wessel of a US-Chain security review commission.

It told Reuters that its equipment is used by 45 of the world's top 50 carriers, and that security for its clients is paramount.

Lawmakers in the USA have been urging AT&T, the second largest US wireless carrier, to cut its commercial ties with Huawei Technologies the phone maker based in China and are opposed to the plans by China Mobile, a telecom operator to enter the market in the US due to concerns over national security, said a pair of congressional aides.

Huawei and Chinese telecom firms have long struggled to gain a toehold in the US market, partly because of USA government pressure on potential USA partners.

Congress is introducing a bill called the "Defending U.S. Government Communications Act" to ban Huawei and ZTE products from United States government contracts.

Like this: