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This has become a major international incident, and China is now accusing the US of this action against the company as being politically or economically motivated. The US has also been canvassing its allies in Europe and other countries to cease doing business with Huawei, particularly as it pertains as international rollouts of 5G equipment. It has been partially successful so far.
The wireless firm Orange has ruled out using Huawei products in its core 5G network in France, and Germany's Deutsche Telekom has announced that it's reviewing purchases of Huawei equipment. So, what's next for the US and China, and the future Chinese consumer electronics in this country? Huawei does not just make smartphones.
The verbiage of the proposed bill claims that, according to our security agencies , Huawei and ZTE have shared sensitive information with China, and that Chinese security agencies can access private US business communications using Huawei and ZTE's equipment. Huawei and ZTE, of course, have repeatedly denied these allegations since Congress began accusing both of these firms of using their commercial networking products for espionage back in fall There's no question that the relationship between China and the US is a highly complex one, and that China possesses one of the most sophisticated security apparatus in the entire world, rivaling that of Russia, the US, and other western nations.
Just as the US routinely spies on many countries, China's security agencies also spy on the US and other nations of interest.
Also: Made in China: Four horsemen of the iPhone apocalypse. So, what is the solution? To stop buying equipment from China and to cease doing business with them? Well, the short answer is not only no.
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But, basically, it would be impossible, financially, and from a practicality standpoint. This financing of Treasury notes has kept US interest rates low. If China stopped buying US Treasury notes, the interest rates would rise and could throw the entire world into a global recession. This wouldn't be in China's best interests because shoppers would buy fewer Chinese exports. The US -- and the western world as a whole -- is China's best customer next to its own domestic market.
That's the economic reality. The country has zero desire to jeopardize this, regardless of its own national security interests. If it were discovered that China was, in fact, using consumer electronics exports to spy on American citizens and businesses en masse, the consequences would be utterly disastrous for it. Not just in terms of jeopardizing its export business in the US but also in every country it does business with now. It would be catastrophic for the country's image and would throw the global consumer electronics industry into utter chaos. Also: 10 best smartphones not made in China.
Chinese firms aren't just responsible for final assembly, productizing, and shipping product abroad, they also form a large portion of the overall supply chain of manufacturing electronic components used in just about every electronic device manufactured all over the world. I'm talking about all kinds of stuff that go into not just smartphones and mobile devices, but also the Internet of Things IoT , major appliances, medical devices, automobiles, aerospace, you name it.
If a product has semiconductors in it, there is a good chance they came from China.
Yes, there are other countries that make products that have semiconductors and electronics, such as Japan, Korea, Taiwan, Singapore, Vietnam, Malaysia, and, of course, the European and South American nations. But they too use Chinese firms as not just suppliers for certain things but also for partial and final assembly, because it is that much cheaper to do there.
So, what do we do? Well, we can't prohibit American firms from doing business with Chinese companies or foreign firms that use Chinese-made components just because we are nervous they might use their products to spy on us. We can set internal procurement controls on certain types of products and have rigorous monitoring and testing of stuff before it ends up being used in government agencies, but that's about it.
There is no practical or legislative way of keeping China out of products being brought into the US. Such efforts would be counterproductive.
A fatal blow?
That being said, the threat of our devices being used to spy on us is very much real -- but China should not be the focus of concern. Also: Apple transfers iCloud operation in China to a local government-backed firm. I believe there needs to be an international effort to monitor and certify consumer electronics so that we can better understand the nature of these threats and then take appropriate action when they are discovered.
The software development and hacker communities residing within the major technology firms already have informal inter-firm efforts to monitor embedded operating systems and applications for potential malware. To date, they've done a very good job overall of discovering major security exploits and malware, but we can improve this by formalizing how this is done by having our government form and fund organizations with our allies -- as part of overall international treaty negotiations -- with the express effort of increasing due diligence in analysis and monitoring of software that runs on consumer electronics.
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The efforts to date have only covered "In-band" types of exploits and malware. This needs to continue, but we have to go deeper. The real concern would be "out-of-band" exploits and malware that would not be discovered within applications or operating systems, but in the components, such as firmware or hard-coded routines within the semiconductors themselves like a baseband communications chip that would not be detected as a high-level process.
So far, no such state-sponsored malware or an exploit has ever been detected in a semiconductor component originating from China, or, at least, such a discovery has never been validated. All we have received so far is an accusation from a reporter at Bloomberg that certain SuperMicro server systems had a chip that was intercepting and forwarding network traffic from data centers of 30 American corporations, including Apple.
That has so far been proven to be categorically false by SuperMicro , as well as Apple and Amazon. The only comparable out-of-band exploits that have been discovered are the Spectre and Meltdown bugs in Intel, AMD, and ARM processors, which are categorized as unintentional but exploitable architectural flaws and common issues related to modern microprocessor design -- and they have nothing to do with China. Oh, and the most significant discovered out-of-band exploit prior to those two? Also Intel in origin. Also: In rapid onslaught, Chinese phone makers take control.
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Huawei P30 Pro review: Smartphone photography, redefined
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