Tag Archives: Huawei

U.S. Warms Up Its Own Old Spy Stories To Bash Putative Chinese Espionage, by Moon of Alabama

The old saying is that it takes one to know one. From Moon of Alabama at moonofalabama.com:

The Washington Post is warming up an old crypto story:

For more than half a century, governments all over the world trusted a single company to keep the communications of their spies, soldiers and diplomats secret.The company, Crypto AG, got its first break with a contract to build code-making machines for U.S. troops during World War II. Flush with cash, it became a dominant maker of encryption devices for decades, navigating waves of technology from mechanical gears to electronic circuits and, finally, silicon chips and software.

The Swiss firm made millions of dollars selling equipment to more than 120 countries well into the 21st century. Its clients included Iran, military juntas in Latin America, nuclear rivals India and Pakistan, and even the Vatican.

But what none of its customers ever knew was that Crypto AG was secretly owned by the CIA in a highly classified partnership with West German intelligence. These spy agencies rigged the company’s devices so they could easily break the codes that countries used to send encrypted messages.

The decades-long arrangement, among the most closely guarded secrets of the Cold War, is laid bare in a classified, comprehensive CIA history of the operation obtained by The Washington Post and ZDF, a German public broadcaster, in a joint reporting project.

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Huawei Hypocrisy, by Craig Murray

People do not realize the information, including the content of phone calls and emails, that governments have about them, even high government officials who should know better. From Craig Murray at craigmurray.org.uk

Theresa May almost certainly sacked Gavin Williamson not just on the basis of a telephone billing record showing he had a phone call with a Telegraph journalist, but on the basis of a recording of the conversation itself. It astonishes me that still, after Snowden and his PRISM revelations, after Wikileaks Vault 7 releases, and after numerous other sources including my own humble contribution, people still manage to avoid the cognitive dissonance that goes with really understanding how much we are surveilled and listened to. Even Cabinet Ministers manage to pretend to themselves it is not happening.

The budget of the NSA, which does nothing else but communications intercept, is US $14.2 billion this year. Think about that enormous sum, devoted to just communications surveillance, and what it can achieve. The budget of the UK equivalent, GCHQ, is £1.2 billion, of which about 10% is paid by the NSA. Domestic surveillance in the UK has been vastly expanded and many taboos broken. But the bedrock of the system with regard to domestic intercepts is still that legal restrictions are dodged, as the USA’s NSA spies on UK citizens while the UK’s GCHQ spies on US citizens, and then the information is swapped. It was thus probably the NSA that harvested Williamson’s phone call, passing the details on. Given official US opposition to the UK employing Huawei technology, Williamson’s call would have been a “legitimate” NSA target.

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Real Reason Trump Wants to Ban Huawei: US Wants to Spy and China Won’t Cooperate, by Mike “Mish” Shedlock

Huawei’s technology is for the most part better than its American counterparts, and unlike its counterparts, it won’t let the US government use its technology to spy. From Mike “Mish” Shedlock at moneymaven.io:

The UK, Germany, India, and the United Arab Emirates are among the countries resisting US pressure to Ban Huawei.

The New York Times reports U.S. Campaign to Ban Huawei Overseas Stumbles as Allies Resist.

Over the past several months, American officials have tried to pressure, scold and, increasingly, threaten other nations that are considering using Huawei in building fifth-generation, or 5G, wireless networks. Mike Pompeo, the secretary of state, has pledged to withhold intelligence from nations that continue to use Chinese telecom equipment. The American ambassador to Germany cautioned Berlin this month that the United States would curtail intelligence sharing if that country used Huawei.

But the campaign has run aground. Britain, Germany, India and the United Arab Emirates are among the countries signaling they are unlikely to back the American effort to entirely ban Huawei from building their 5G networks. While some countries like Britain share the United States’ concerns, they argue that the security risks can be managed by closely scrutinizing the company and its software.

The United States is not ready to admit defeat, but its campaign has suffered from what foreign officials say is a scolding approach and a lack of concrete evidence that Huawei poses a real risk. It has also been hampered by a perception among European and Asian officials that President Trump may not be fully committed to the fight.

Mr. Trump has repeatedly undercut his own Justice Department, which unveiled sweeping criminal indictments against Huawei and its chief financial officer with accusations of fraud, sanctions evasion and obstruction of justice. Mr. Trump has suggested that the charges could be dropped as part of a trade deal with China. The president previously eased penalties on another Chinese telecom firm accused of violating American sanctions, ZTE, after a personal appeal by President Xi Jinping of China.

One senior European telecommunications executive said that no American officials had presented “actual facts” about China’s abuse of Huawei networks.

The UK, Germany, India, and the United Arab Emirates are among the countries resisting US pressure to Ban Huawei.

The New York Times reports U.S. Campaign to Ban Huawei Overseas Stumbles as Allies Resist.

Over the past several months, American officials have tried to pressure, scold and, increasingly, threaten other nations that are considering using Huawei in building fifth-generation, or 5G, wireless networks. Mike Pompeo, the secretary of state, has pledged to withhold intelligence from nations that continue to use Chinese telecom equipment. The American ambassador to Germany cautioned Berlin this month that the United States would curtail intelligence sharing if that country used Huawei.

But the campaign has run aground. Britain, Germany, India and the United Arab Emirates are among the countries signaling they are unlikely to back the American effort to entirely ban Huawei from building their 5G networks. While some countries like Britain share the United States’ concerns, they argue that the security risks can be managed by closely scrutinizing the company and its software.

The United States is not ready to admit defeat, but its campaign has suffered from what foreign officials say is a scolding approach and a lack of concrete evidence that Huawei poses a real risk. It has also been hampered by a perception among European and Asian officials that President Trump may not be fully committed to the fight.

Mr. Trump has repeatedly undercut his own Justice Department, which unveiled sweeping criminal indictments against Huawei and its chief financial officer with accusations of fraud, sanctions evasion and obstruction of justice. Mr. Trump has suggested that the charges could be dropped as part of a trade deal with China. The president previously eased penalties on another Chinese telecom firm accused of violating American sanctions, ZTE, after a personal appeal by President Xi Jinping of China.

One senior European telecommunications executive said that no American officials had presented “actual facts” about China’s abuse of Huawei networks.

9 Charts Showing Huawei’s Global Dominance, by Tyler Durden

US moves against Huawei couldn’t be because the Chinese company is the world leader in 5G technology. From Tyler Durden at zerohedge.com:

Regardless of whether Huawei represents a genuine national security threat to the US and its allies, there is another important reason why Washington might want to persecute Huawei: Namely, because US telecoms companies, fearful of ceding even more ground to global market leader, asked them to, as John Tamney explained in an essay published by the American Institute for Economic Research.

Huawei, a wildly highly successful telecom company can’t place its goods on U.S. shelves because it is viewed as a national security threat. The laughable argument offered up by members of the political class to defend the indefensible is that Huawei’s close ties to the Chinese government mean that American use of its phones and equipment imperil us because we could be spied upon. Oh dear…

The real threat here is U.S. telecoms that are close enough to our federal government such that they can convince federal officials to pursue always damaging protectionism. Luckily for U.S. smartphone makers (Apple sells 20% of its iPhones in China), the rules against our best and brightest in China aren’t so stringent.

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The Trade War Distraction: Huawei And Linchpin Theory, by Brandon Smith

The trade war will serve as a convenient scapegoat for crashing markets when its actually central bankers who are responsible. From Brandon Smith at alt-market.com:

Since the beginning of this year, I have been warning that trade tariffs initiated by Donald Trump would develop into a full-blown trade war with China, and perhaps other nations, and that the timing of this trade war is rather suspicious. Suspicious how? Almost every instance of further escalation was made by Trump around the exact time that the Federal Reserve was also making a large cut to its balance sheet or raising interest rates. Instead of focusing on the fact that extreme volatility has returned to markets because central banks are pulling the plug on life support, the mainstream media is holding up the trade war as the ultimate culprit behind the accelerating crash.

In other words, Trump’s trade war is acting as a perfect distraction from the crisis which the banking establishment has now deliberately triggered.

The initial response to my suggestion by a minority of liberty movement activists and skeptics was outright denial. Some people argued that the trade war would be over before it even began and that China would immediately capitulate in fear of losing the U.S. consumer market. Others argued that the trade war “had been started by the Chinese years ago” and Trump was simply “fighting back.”

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China Outraged At Arrest Of Huawei CFO, Warns It Will “Take All Measures”, by Tyler Durden

US relations with China go from bad to worse. From Tyler Durden at zerohedge.com:

So much for a trade war truce between China and the US, or a stock market Christmas rally for that matter.

Shortly after the news hit that Huawei CFO Wanzhou Meng — also deputy chairwoman and the daughter of Huawei’s founder — was arrested on December 1, or right around the time Trump and Xi were having dinner in Buenos Aires last Saturday, and faces extradition to the U.S. as a result of a DOJ investigation into whether the Chinese telecom giant sold gear to Iran despite sanctions on exports to the region, China immediately lodged a formal protest publishing a statement at its embassy in Canada, and demanding the U.S. and its neighbor “rectify wrongdoings” and free Meng, warning it would “closely follow the development of the issue” and will “take all measures” to protect the legitimate rights and interests of Chinese citizens.

Full statement below:

Remarks of the Spokesperson of the Chinese Embassy in Canada on the issue of a Chinese citizen arrested by the Canadian side

At the request of the US side, the Canadian side arrested a Chinese citizen not violating any American or Canadian law. The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim. The Chinese side has lodged stern representations with the US and Canadian side, and urged them to immediately correct the wrongdoing and restore the personal freedom of Ms. Meng Wanzhou.

We will closely follow the development of the issue and take all measures to resolutely protect the legitimate rights and interests of Chinese citizens.

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