How Huawei found itself in the middle of the U.S.-China trade war


-A lot of people see
the word “Huawei” and don’t even know
how to pronounce it. Huawei is a Chinese electronics
company founded in 1987 by former army officer
Ren Zhengfei. For Americans, it’s not
a big consumer brand, but they’re actually
the second-largest cellphone maker in the world
behind Samsung. They make very high-end
cellphones with great cameras that are sold at a much lower
price than other premium brands. -So why don’t consumers
in the United States have access
to these popular phones that might be as good
or better than the iPhone? Well, it’s a complicated answer that involves much more
than just cellphones. -We’re deeply concerned
about the risks of allowing any company
or entity that is beholden
to foreign governments that don’t share our values
to gain positions of power inside our telecommunications
network. -The reason that they’re
in the crosshairs of the US government
is less because of their cellphone
manufacturing and more because of their telecomm
manufacturing. -Huawei is the world’s
largest telecommunications network provider. Their network infrastructure, including the technology
needed for 5G, is far cheaper than
competitors Nokia and Ericsson. And in some places,
it’s already going live. In mid-July 2019, Monaco became
the first European country to begin using
a Huawei-made 5G network. -The question here is,
if Huawei puts up all this telecommunications
equipment all over the world, is there some way that they
could sneak in a backdoor that would allow
the Chinese government to listen in on this
massive communications network? -And while spying on
our communications network is a big concern, there’s a lot more that this
5G network is going to power, like autonomous vehicles
and many military applications. Huawei’s founder and CEO,
Ren Zhengfei, was an engineer and an officer
in the People’s Liberation Army. This leads a lot of people
to believe that Huawei has close ties
to the Chinese military and the Chinese
Communist Party. But aside from that, Huawei is positioned
to be the leader in the lucrative
field of 5G. Telecommunications giant
Ericsson estimates it’ll be worth 1 point
2 trillion dollars by 2026. This is why Huawei
has found itself at the center of tense
trade negotiations between the United States
and China, which has led
to some drastic measures. -Miss Meng, what’s your reaction
to the crimes unveiled today? -So, the first time
many Americans probably heard the name Huawei
in the news was in December when the company’s CFO
and the daughter of the founder, Meng Wanzhou,
was arrested in Vancouver. She was changing planes and arrested
by Canadian authorities on an extradition request
from the US government for allegedly violating
Iran sanctions. -US prosecutors say Meng used
a shell company for Huawei’s dealings
with Iran, misleading banks into approving
millions of dollars in transactions
that violated sanctions. -Huawei has been investigated
for years for creating shell companies, allegedly,
and funneling equipment, telecommunications equipment
and other electronics, to Iran. And there were questions
immediately about the implications
for that arrest. You know, what were
the motivations? Was this part of
the larger trade agreement? -And about a month after
the indictment of Huawei’s CFO, more indictments came. -First, I am announcing
that a grand jury in Seattle has returned an indictment, that it alleges ten
federal crimes by two affiliates of telecommunications
corporation Huawei Technologies. -The Justice Department
indictment alleges that a Huawei employee stole
trade secrets from T-Mobile by stealing
a smartphone-testing robot from a research facility
in his laptop bag. Huawei claims this act
was carried out by two employees who acted on their own,
violating company policy, and who were then fired. A Huawei employee was
also arrested in January 2019 in Poland for suspected spying on behalf
of the Chinese government. This is why the US has been
raising red flags and lobbying its allies to ditch
Huawei technology and its 5G. So far, Huawei technology
is banned in the United States, Japan, Australia,
and New Zealand. Huawei has said that a ban
on its 5G technology will only lead countries
to use inferior yet more expensive
alternatives. And some allies have been
more reluctant to ban Huawei outright. The UK Parliament’s Science
and Technology Committee rejected a proposed ban
on Huawei 5G tech, saying that there are
no technical grounds for excluding Huawei entirely
from the UK’s 5G network, though a British independent
government-oversight group did find basic yet
significant security flaws in Huawei’s product code, which Huawei had previously
vowed to fix. -You’ve seen some articles
that suggest maybe there are
some backdoors, but plenty people say
what people have found are really more bugs
in the system, and every telecommunications
system has bugs. -But whether it’s backdoors
or bugs, it’s really China’s
2017 National Intelligence Law that gives a lot
of people concern. It requires individuals
and organizations to assist with
intelligence operations if compelled to do so
by the state. -I think what lawmakers
in the US have said is that it doesn’t even matter
what the law in China says. The Chinese government has so
much power to act unilaterally. Their theory is that even
if Huawei wanted to sort of protect their
telecommunications equipment to make it safe
around the world and free of any Chinese
government meddling, they wouldn’t even
be allowed to do that. Now, Huawei absolutely
denies that. They say, you know, there’s no
way they would ever do this, there’s probably no way
they could ever do this. -And as trade talks between
China and the United States continued through
the spring of 2019, the Trump administration added
an extra layer of pressure. -President Trump signed
an executive order on Wednesday allowing the US to ban foreign
telecommunications equipment and services. The order is meant to help
protect the US from foreign adversaries taking advantage of
technological vulnerabilities. -They’ve been added to what’s
called the entity list, which is kept by the
US Department of Commerce, and it’s companies
that really can’t be trusted to buy US technology. This was a big deal
because Huawei’s actually one of the largest buyers
of US chips, for instance, in the world. -Being on the entity list
doesn’t just block chips from being sold to Huawei. It also blocks it from receiving
updates for Google’s Android
operating system, which Huawei phones run on. -Some people believed that the
reason they were put on the list was really less about
national security, which is the stated reason and the whole reason that list
exists in the first place, and more because Huawei
was being used as a bargaining chip
in trade agreements. Lo and behold, in June 2019, President Trump meets with Xi
Jinping of China and agrees to essentially remove this ban, allow US companies
to sell technology to Huawei. And he says, you know,
he did that because US companies were upset, and China’s coming back
to the table and talking about, you know,
trade negotiations again. So, is Huawei a bargaining chip
in trade negotiations or are they a real
national-security threat? The waters are kind of muddy
now.

29 thoughts on “How Huawei found itself in the middle of the U.S.-China trade war

  1. 911 attack was in fact cyber attack launched by Chinese govt, by injecting pre-defined flight route , plz check Boeing develop server about 1997, GPS based auto-polit system.

  2. Saleha Mahmood Abedin, plotted with Chiense govt during her vist to Beijing in 1995 (joining World Conference on Women), when came back Longdon, she took money from Beijing pointed Bank Account and recruited many scapegoats for their agenda. She also helped Beijing to get the password of Hillary Clinton's mail server. That's why the intursion didn't trigger any warning and defense.

  3. Saleha M. Abedin, plotted with Chiense govt during her vist to
    Beijing in 1995 (joining World Conference on Women), when came back
    Longdon, she took money from Beijing pointed Bank Account and recruited
    many scapegoats for their agenda. She also helped Beijing to get the
    password of Clintxn's mail server. That's why the intursion
    didn't trigger any warning and defense.

  4. Saleha M. Abedin, plotted with Chiense govt during her vist to
    Beijing in 1995 (joining World Conference on Women), when came back
    Longdon, she took money from Beijing pointed Bank Account and recruited
    many scapegoats for their agenda. She also helped Beijing to get the
    password of Clintxn's mail server. That's why the intursion
    didn't trigger any warning and defense.

  5. I don't even have to watch this video. It simple you can't have Washington Post with Huawei written close and expect something factual, realistic and positive. Washington is driven by the idea of supremacy or superiority. If it feel threatened it wil react negatively. That's what you are now seen with them.

  6. Base model P30 Pro start at 999Euro($1200), how is that sold at much lower price than competitor? Stop stereotype sh!t. We buy it purely because it's so much much more advance than the competitors.

  7. No, US did not take on Huawei because he has a spy risk it's just because purely because it's more advanced and it wants to gain a competitive edge over the more advanced competitor. The same reason they put German cars and the Canada Steel as "national security threat".

  8. Ren repeatedly said Huawei's equipment are much more expensive than their competitors, they still choose its equipment because they are much more advanced.

    Washington Post stop spreading propaganda!

  9. Despite been totally banned from North America, Huawei still achieved number 2 position Global smartphone market and increasing, imagine what happens if it is not banned. Ironically us has a spied new highways server for years looking for things they can jump on, they found nothing. (Same result, when US spied German Chancellor Angela Merkel looking anti-American activities.) While posing as champion for free market when it's companies are doing well, but becomes the biggest obstacle to the free market economy when its companies are no longer number one.

  10. western propaganda, Huawei have the best phones, The evil Empire USA, they spy everybody, dont be naive .

  11. WaPo regurgitate all the propaganda written by the American deep state, and dutifully broadcast by the big media. Nonstop. Bottomline: Huawei threaten U.S. national security.

    Let's remember: Canadian steel and aluminum imports also certified by Trump to threaten U.S. national security. So are EU imports. Mexican little boy refugee also threaten national security – starved to death.

    Huawei smartphones are sold everywhere in the world except one country – the U.S. No security threat worldwide, except the U.S. where they are not even sold!

    The stupidity is beyond absurd.

    The truth: 1) Huawei phones far exceed performance of Apple current models, will blow away future models due to advanced and customer friendly design. It's a threat to Apple stock held by Wall Street.
    2) Huawei 5G network far superior than those of Nokia and Ericsson. Works fantastic and have NO BACKDOOR. Well, the U.S. today can hack just about every country in the world using its landline and 4G wireless products. All have backdoors. (The latest discovery of these backdoors, such as Cisco routers, came from German intelligence report. Search the web.) With every Huawei network installed in a country, it will be safe from American intelligence hacking. This is why Trump want Huawei banned.
    3) Wireless technology. U.S. has no telecom equipment company anymore, no mobile tech and products. While Huawei is world class. So U.S. have to import all mobile gear – phone and network. It feels very vulnerable, blame Huawei. Instead of blaming why it lost its last mobile telecom OEM Lucent Technologies a decade ago, and why there are no replacement.

    The world is not stupid. Everybody see the BS being broadcast from U.S. media. The BS have no effect – this is the era of the Internet and people cannot be fooled by propaganda anymore. The result is Huawei products will be installed worldwide, become the standard. Except U.S.A. where mobile will decline to third world status.

  12. It's getting harder and harder to scoop up the little “evidence” there are to paint a gigantic company like Huawei black. To me, all the accusations on Huawei sound trivial and eventually degenerate into a series of isolated and barren conceits after they are repeated again and again to achieve "volume". The interpretation of these few incidences of Huawei's past "mischiefs" also appear forced, unconvincing and far fetched.

  13. that is why USA will be behind in future/

    money democracy is not advanced policy in this world now/

    you just ignored the fact that AMERICAN spied on their allies German and UK

    how you can so biased in the program??

    so you are justice? you can spy on other people??
    but you block one company who probably spy??

  14. if washington post is failed to report with fact, i think such media should shut down ASAP/
    i was shocked they could make all fraud fact with their biased
    it was a time that american and his media, they are confident to report everything
    american future is dead …

  15. All US companies have close ties with the US government too. It is idiotic to think that they are not in cohort with FBI and CIA when it comes to data and intelligence. Look at the mirror, Washington Post, before making silly remarks about Chinese companies. Unsubscribed.

  16. Question to the channel: can someone confirm that China has 2.7 million 4g towers, the US has only one tenth of that?

  17. I don’t see Chinese government arrested the relatives of General Dynamics’s executives even they sold F-16 to Taiwan, actually their subsidiary Gulfstream has sold hundreds of business jets to China

  18. Many U.S. CEOs are veterans, including Chairman and CEO of Verizon, Lowell McAdam, ConocoPhillips CEO James Mulva, Procter & Gamble Chairman and CEO Robert McDonald , FedEx founder, chairman, president, and CEO Fred Smith, Lockheed Chairman, President, and CEO, Robert Stevens, McDonald's CEO James Skinner. None of these companies are banned in China. We now know the FAA was in bed with Boeing on the 737 Max safety certification and every U.S. company cuts off Huawei when Trump said they should. So why make such a selective accusation that Ren was a former PLA? BTW, that was almost 40 years ago.

  19. Another 'weapon of mass destruction' hoax created by the usa. If huawei's product contain spying devices, why dont us just prove it ? They just dont want the next global tech to be dominated by a chinese country. Unfortunately, huawei already have patents for most 5g tech and they have they cheapeat way of doing so. Google will sooner work with Huawei again.

  20. You lowlife Chinese need to get a life, instead of spreading your trash country's propaganda. The world still sees China as a joke.🤣

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