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Meanwhile in China lots of people are dead

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Author Topic: Meanwhile in China lots of people are dead  (Read 237 times)
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Having fun in the hills!

« on: February 21, 2020, 08:29:48 pm »

America's allies are ignoring America's stupid “fake president” and signing contracts with Huawei.

from The New York Times…

Huawei Is Winning the Argument in Europe,
as the U.S. Fumbles to Develop Alternatives

Germany seems poised to follow Britain in letting the Chinese maker build
next-generation networks, despite last appeals from the United States.

By DAVID E. SANGER and DAVID McCABE | Monday, February 17, 2020

People testing out new Huawei smartphones at a technology event in Munich last year. — Photograph: Matthias Schrader/Associated Press.
People testing out new Huawei smartphones at a technology event in Munich last year.
 — Photograph: Matthias Schrader/Associated Press.

WASHINGTON D.C. — America's global campaign to prevent its closest allies from using Huawei, the Chinese telecom giant, in the next generation of wireless networks has largely failed, with foreign leaders publicly rebuffing the United States argument that the firm poses an unmanageable security threat.

Britain has already called the Trump administration's bluff, betting that officials would back away from their threat to cut off intelligence sharing with any country that used Huawei equipment in its network. Apart from an angry phone call between President Trump and Prime Minister Boris Johnson, Britain appears to be paying no price for its decision to let Huawei into limited parts of its network, under what the British say will be rigorous surveillance.

Germany now appears ready to follow a similar path, despite an endless stream of cajoling and threats by Secretary of State Mike Pompeo, Defense Secretary Mark T. Esper and other U.S. officials at a global security conference in Munich last weekend.

In public speeches and private conversations, Mr. Pompeo and Mr. Esper continued to hammer home the dangers of letting a Chinese firm into networks that control critical communications, saying it would give the Chinese government the ability to spy on — or, in times of conflict, turn off — those networks. The security risks are so severe, they warned, that the United States would no longer be able to share intelligence with any country whose network uses Huawei.

“If countries choose to go the Huawei route,” Mr. Esper told reporters on Saturday, “it could well jeopardize all the information sharing and intelligence sharing we have been talking about, and that could undermine the alliance, or at least our relationship with that country.”

Yet officials sense their continued drumbeat of warnings is losing its punch in Europe, so the administration is shifting its approach. The United States is now aiming to cripple Huawei by choking off its access to the American technology it needs and trying to cobble together a viable American-European alternative to compete with it.

The Huawei fight is just one part of a bigger U.S.-China battle, as Washington tries to contain Beijing's influence and power and ensure that the world's second-largest economy does not come to dominate advanced industries that could give it an economic and military edge. That includes the next-generation telecommunications networks that Huawei is building, known as 5G. Those superfast networks will control communications, critical infrastructure and, most worrying for American officials, the “internet of things” devices that are already controlling factories, autonomous vehicles and the day-to-day operations of military bases.

The United States is also trying to limit China's access to American technology more broadly and is considering restricting sales of microchips, artificial intelligence, robotics and some types of advanced software, along with preventing tech companies from teaming up — or even sharing research — with Chinese firms.

Chancellor Angela Merkel of Germany and her government are focused on potential effects on the country’s exports to China. — Photograph: Kay Nietfeld/Deutsche Presse-Agentur GmbH/via Associated Press.
Chancellor Angela Merkel of Germany and her government are focused on potential effects on the country’s exports to China.
 — Photograph: Kay Nietfeld/Deutsche Presse-Agentur GmbH/via Associated Press.

Last week, the United States turned up the legal pressure on Huawei by announcing new charges of racketeering and theft of trade secrets, including allegations from more than a decade ago. The new charges were added to a sweeping indictment filed in 2019 that accused the company and its chief financial officer, Meng Wanzhou, of fraud and sanctions evasion. As part of that case, the Trump administration has been pressing Canada to extradite Ms. Meng, who was arrested in late 2018 in Vancouver at the behest of American officials, so that she can face charges in the United States. Ms. Meng is the eldest daughter of Huawei's founder, Ren Zhengfei.

This month, the administration is expected to try to squeeze Huawei even further by closing a loophole that has allowed the firm to continue buying parts and products from American companies, despite a Trump administration ban on selling to Huawei. While the Pentagon initially opposed the effort, fearing it could hurt defense suppliers, it has now reversed its position amid pressure from other administration officials.

But the effort to handicap Huawei has been complicated by the lack of an alternative to the company, which offers low-cost telecom equipment partially subsidized by the Chinese government. Right now the only real competitors are Nokia and Ericsson, two European firms that claim they have deployed more 5G networks than Huawei, but are clearly struggling to match its prices or keep up with the Chinese firm's research and development.

That has sent the administration scrambling to present European and other nations with another option. Over the span of 10 days, Attorney General William P. Barr, Vice President Mike Pence and other officials have offered differing American strategies to build a credible competitor to Huawei. Yet at times, they have contradicted one another's ideas, often in public.

In private meetings, Mr. Trump has been urging American firms to get into the competition themselves. But the administration is deeply divided internally over whether the United States needs to invest in the technology or leave the market to sort it out.

Mr. Barr further confounded things with a speech this month where he called for American acquisition of Nokia and Ericsson “through American ownership of a controlling stake, either directly or through a consortium of private American and allied companies.”

“We and our closest allies certainly need to be actively considering this approach,” Mr. Barr said.

American officials have gently walked back Mr. Barr's comments. Asked about the prospect of a “controlling stake,” Robert Blair, an assistant to Mr. Trump for international telecommunications policy, told The New York Times that “we are focused more on putting everyone in the tent than putting U.S. taxpayer dollars in the midst.”

Mr. Pence, in remarks to CNBC, said the best response to Huawei was to free up airwaves for use in 5G networks operated by American carriers.

Frustration with America's anti-Huawei campaign is building. Speaking in Munich, Mr. Esper trotted out the same security warnings the United States has been using for more than a year, telling a packed conference hall of European diplomats and business leaders that the People's Liberation Army and Chinese intelligence were trying to extend their authoritarian state and that Europe must fight back.

“Huawei and 5G are today's poster child for this nefarious activity,” he said. “Let's be smart. Let's learn from the past and let's get 5G right so we don't regret our decisions later.”

Yet his audience remained skeptical.

“Many of us in Europe agree that there are significant dangers with Huawei, and the U.S. for at least a year has been telling us, do not use Huawei. Are you offering an alternative?” asked Toomas Hendrik Ilves, Estonia's former president. “Are you going to subsidize Nokia and Ericsson? I mean, what do we get? What is it that we should do other than not use Huawei?”

Huawei has proved increasingly effective at pushing back against the United States. After U.S. officials said last week that they had long ago found a “back door” that would allow the company to siphon information off any network, without American telecommunications firms knowing it, the company called it “impossible” and demanded evidence. But none has been declassified.

Andy Purdy, a former homeland security official who now works for Huawei, said the company has suggested a way around security concerns by offering to license its technology “so the Americans or Europeans can build it themselves.” The United States has not responded to the offer, Mr. Purdy said.

“Huawei and 5G are today's poster child for this nefarious activity,” Defense Secretary Mark T. Esper said. — Photograph: Johannes Simon/Getty Images.
“Huawei and 5G are today's poster child for this nefarious activity,” Defense Secretary Mark T. Esper said.
 — Photograph: Johannes Simon/Getty Images.

The fight over Huawei has put many European countries in a no-win position, forcing them to either rebuff a key intelligence ally's warnings and risk their key alliance, or alienate China, a critical trading partner. Further complicating the decision is the lack of definitive U.S. intelligence showing that Huawei has ever gained access to data that flows across its networks during the two decades it has provided telecommunications equipment to Europe.

Fear of Chinese retaliation has gripped Chancellor Angela Merkel of Germany and her government. While Germany's intelligence chiefs have largely joined the American assessment of Huawei's national security dangers, Ms. Merkel is focused on the effects on German exports to China, especially after Chinese officials have hinted that Volkswagen, BMW and Daimler, the maker of the Mercedes-Benz, would bear the brunt of retaliation.

“I have always been more concerned about the possibility of network manipulation,” Norbert Röttgen, the chairman of the German Parliament's foreign affairs committee, said at the Munich conference. “You don't even have to actually take that step, if you control the network. The knowledge that you can is power in itself. How free would we really be in our choices with respect to protecting human rights and other issues if we know that the functioning of crucial parts of our economy depends on the good will of an external power?”

Yet European officials say Germany is likely to mirror Britain's decision to use Huawei and engage in strict monitoring. Germany, like Britain, is expected to keep Huawei out of the most sensitive parts of the telecom network but allow the firm to provide equipment and software for the radio networks that control cell towers and base stations around the country.

That decision will still be a huge loss for the United States. Germany and Britain are America's closest intelligence-sharing partners, and both nations sit atop critical points along fiber-optic cables that are key to intercepting communications from Russia to the Middle East. American officials, including the National Security Agency, have expressed concern about the Chinese government's ability to infiltrate those communications.

The United States has had some success in keeping Huawei out of other networks. Australia has flatly banned Huawei and Japan has done so indirectly. Poland, eager for a deeper American alliance, is likely to keep Huawei at bay. Italy, lured by the promise of a $3 billion Huawei investment in its telecommunications system, at first announced it was giving Huawei a major contract to build its “radio networks,” the base stations and antennas that connect to cellphones and internet-of-things devices. Then it suggested it would review each of those deals, but has been murky about how.

In the absence of a cohesive U.S. strategy, a group of major wireless carriers has considered another approach that would allow more companies to challenge Huawei. The group is pressing for a common architecture for the software and hardware that run 5G networks — an idea that has gained traction with some U.S. policymakers.

Such a system would allow smaller companies to make individual pieces of networking equipment that interact with one another, breaking Huawei's market dominance.

Mr. Barr, in his speech, said the idea is “just pie in the sky.”

The proposal has gained traction among others in Washington and the administration. The two top lawmakers on the Senate Intelligence Committee, Richard M. Burr, Republican of North Carolina, and Mark Warner, Democrat of Virginia, introduced a bill in January that would allocate at least $750 million to research and development of such an open system. It also allocates $500 million to “accelerate the adoption of trusted and secure equipment globally.”

Larry Kudlow, the director of the National Economic Council, recently told The Wall Street Journal that the United States was supporting efforts to use software to undercut Huawei.


David E. Sanger is a national security correspondent and a senior writer. In a 36-year reporting career for The New York Times, he has been on three teams that have won Pulitzer Prizes, most recently in 2017 for international reporting. His newest book, The Perfect Weapon: War, Sabotage and Fear in the Cyber Age,’ examines the emergence of cyberconflict as the primary way large and small states are competing and undercutting each other, changing the nature of global power. He is also the author of two New York Times best sellers on foreign policy and national security: The Inheritance: The World Obama Confronts and the Challenges to American Power, published in 2009, and Confront and Conceal: Obama's Secret Wars and Surprising Use of American Power, published in 2012. For The N.Y. Times, Mr. Sanger has served as Tokyo bureau chief, Washington economic correspondent, White House correspondent during the Clinton and Bush administrations, and chief Washington correspondent. Mr. Sanger spent six years in Tokyo, writing about the emergence of Japan as a major American competitor, and then the country's humbling recession. He wrote many of the first articles about North Korea's emerging nuclear weapons program. Returning to Washington, Mr. Sanger turned to a wide range of diplomatic and national security issues, especially issues of nuclear proliferation and the rise of cyberconflict among nations. In reporting for The Times and Confront and Conceal, he revealed the story of Olympic Games, the code name for the most sophisticated cyberattack in history, the American-Israeli effort to sabotage Iran's nuclear program with the Stuxnet worm. His journalistic pursuit of the origins of Stuxnet became the subject of the documentary “Zero Days” which made the short list of Academy Award documentaries in 2016. With his Times colleague Bill Broad, he also described, in early 2017, a parallel cybereffort against North Korea. Mr. Sanger was a leading member of the team that investigated the causes of the Challenger disaster in 1986, which was awarded a Pulitzer in national reporting the following year. A second Pulitzer, in 1999, was awarded to a team that investigated the struggles within the Clinton administration over controlling technology exports to China. He has also won the Weintal Prize for diplomatic reporting for his coverage of the Iraq and Korea crises, the Aldo Beckman prize for coverage of the presidency, and, in two separate years, the Merriman Smith Memorial Award, for coverage of national security issues. “Nuclear Jihad” the documentary that Mr. Sanger reported for Discovery/Times Television, won the duPont-Columbia Award for its explanation of the workings of the A. Q. Khan nuclear proliferation network. That coverage was also a finalist for a Pulitzer. A 1982 graduate of Harvard College, Mr. Sanger was the first senior fellow in The Press and National Security at the Belfer Center for Science and International Affairs at Harvard. With Graham T. Allison Jr., he co-teaches Central Challenges in American National Security, Strategy and the Press at the Kennedy School of Government.

David McCabe is a tech policy reporter at The New York Times, based in Washington D.C., a position he has held since August 2019. David was most recently at Axios, where he covered tech policy and early on spotted the growing backlash against the tech companies, including conversations on the left about the reach of Amazon. That led him to examine how the tech giants were working to influence the debate and how policymakers were steering the agenda. Along the way, he had scoops, such as the behind-the-scenes details of how the White House was trying to calm the trade fears of tech companies. Before Axios, David worked at The Hill, where he covered tech policy and breaking news. He was also a politics intern at The Huffington Post and has interned in radio.

• A version of this article appears in The New York Times on Tuesday, February 18, 2020, on page A1 of the New York print edition with the headline: “Europe Resisting Campaign by U.S. To Block Huawei”.

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