Trump signs defense bill prohibiting US government from using ZTE, Huawei tech

[midian182]

What just happened? The long-running battle between ZTE and the US government may have reached a conclusion. Yesterday, President Trump signed the Defense Authorization Act, which bans US government agencies and contractors from using certain tech from ZTE, Huawei, and other Chinese companies.

Back in April, ZTE was banned from trading with US firms for seven years. The punishment was for failing to fire employees who were involved in selling US-made technology to Iran—a violation of US trade sanctions.

With US businesses providing as much as 30 percent of the components used in ZTE products, the ban devastated the company, leading it to ceasing major operations soon afterward.

Eventually, the US said it would lift the denial order if ZTE paid a fine of at least $1.3 billion and replaced its senior management and board. But the US Senate voted to reinstate the ban, though attempts to bring back the sanctions were abandoned last month.

The John S. McCain National Defense Authorization Act for Fiscal Year 2019, which contains the ban that goes into effect across the next two years, covers anything that is a “substantial or essential component of any system.” And while some components from the Chinese companies are allowed, they can’t be used to route or view data.

Huawei said the inclusion of its products in the act was "ineffective, misguided and unconstitutional.”

"It does nothing to identify real security risks or improve supply chain security, and will only serve to stifle innovation while increasing internet costs for US consumers and businesses," Huawei said in a statement. "We believe that the American people deserve equal access to the best possible connections and smart device options, and will keep working to make this happen."

The US government has issued warnings about the alleged security threats posed by Huawei and ZTE products since 2012. At the start of this year, bosses from six US intelligence agencies said using a telecoms device from one of the companies could put you at risk of having personal data accessed or stolen—a result of their close ties with the Chinese government.

Permalink to story.

https://www.techspot.com/news/75954-trump-signs-defense-bill-prohibiting-us-government-using.html

 

[Uncle Al]

So basicly we're saying the government is protected from them, but the rest of us are on our own? LOL

 

[loki1944]

Outstanding. And about damn time.

 

[seeprime]

And for reasons of maximum profit, US corporations still outsource manufacturing to Chinese mega manufacturing companies, instead of building our own mega plants at home and providing jobs to Americans. With automation the cost difference can't be as severe as it was twenty years ago. Chinese labor costs have climbed. Ours have stagnated. The longer this continues the more of a shock to the system China can give us, when they feel like cutting us off, or jacking up prices at will.

 

[Capaill]

"using a telecoms device from one of the companies could put you at risk of having personal data accessed or stolen"
Oh, and all other phone manufacturers protect you from this? Pull the other one.

 

[wiyosaya]

And for reasons of maximum profit, US corporations still outsource manufacturing to Chinese mega manufacturing companies, instead of building our own mega plants at home and providing jobs to Americans. With automation the cost difference can't be as severe as it was twenty years ago. Chinese labor costs have climbed. Ours have stagnated. The longer this continues the more of a shock to the system China can give us, when they feel like cutting us off, or jacking up prices at will.

As I see it, if the US really wanted to do something about it, they would pass tax laws that favor keeping production in the US instead of pushing it overseas.

 

[JamesSWD]

And for reasons of maximum profit, US corporations still outsource manufacturing to Chinese mega manufacturing companies, instead of building our own mega plants at home and providing jobs to Americans. With automation the cost difference can't be as severe as it was twenty years ago. Chinese labor costs have climbed. Ours have stagnated. The longer this continues the more of a shock to the system China can give us, when they feel like cutting us off, or jacking up prices at will.

As I see it, if the US really wanted to do something about it, they would pass tax laws that favor keeping production in the US instead of pushing it overseas.

That's the point of Trump's tariffs and other tax regulations that penalize those companies. It's one of the reasons Apple is bringing back a trillion$ in their cash from overseas and investing in building plants here. Same with other companies.

 

[wiyosaya]

That's the point of Trump's tariffs and other tax regulations that penalize those companies. It's one of the reasons Apple is bringing back a trillion$ in their cash from overseas and investing in building plants here. Same with other companies.

IMO, it is better to reward rather than penalize. Taxes favoring bringing jobs back would reward, tariffs penalize - as I see it. Those tax laws favor placing money overseas. Tariffs place blame on the companies for following the laws. IMO, that does not make much sense. What does make sense, to me, is to change the laws.

Edit: Time will tell if "The Tax Cuts and Jobs Act of 2017" will do what is necessary.