The arrest of Huawei CFO Meng Wanzhou put markets on edge. This new element of the stock tumble, an arrest. The CFO of Huawei. The CFO and her company are under scrutiny by U.S. authorities who claim that the Chinese telecoms gear maker violated U.S. sanctions on Iran This arrest. That is not going to go unanswered. At the time, it was seen as the latest skirmish in the trade war between the U.S. and China. But it’s actually the latest entry in an ongoing high tech struggle between the U.S. and the Chinese smartphone giant over national security. Huawei is now the number two smartphone player in the world. Shipping more units than Apple. The company is right behind Samsung. The U.S. has taken a hard stance against the company even before the arrest. So why go after Huawei? Huawei has been under scrutiny since at least 2011 for its allegedly close ties to the Chinese government. Some U.S. lawmakers and intelligence officials think that Huawei’s hardware could also provide a backdoor for China’s massive and sophisticated state surveillance apparatus. Huawei denies these allegations. American lawmakers and regulators have been fighting Huawei’s introduction to the U.S. market for years. In 2011, Huawei backed out of a deal to buy a startup called 3Leaf Systems because of U.S. government pressure. And a year later, the House Intelligence Committee issued a report that accused Huawei and ZTE, a Chinese rival, of stealing intellectual property from American companies and supporting espionage efforts. Huawei is now wrapped up in President Trump’s trade war with China. But the security issues loom large. The Federal Communications Commission introduced new rules in April 2018 that block federally subsidized telecom carriers, like AT&T, from using suppliers deemed a risk to national security, including Huawei. The Pentagon also stopped selling mobile phones and modems made by Huawei at stores on military bases in April 2018 because of security risks. Around the same time, the directors of the CIA, FBI, NSA and other intelligence agencies made a case against Huawei and ZTE before the U.S. Senate Intelligence Committee. We’re deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don’t share our value to gain positions of power inside our telecommunications networks. That provides the capacity to maliciously modify or steal information and it provides the capacity to conduct undetected espionage. As a result, President Trump signed a bill in August banning government use of Huawei and ZTE devices. Arkansas Senator Tom Cotton alleged that “Huawei is effectively an arm of the Chinese government and that it can steal information from U.S. officials by hacking its devices.” These companies are dangerous to our national security and to your privacy. Huawei and ZTE are nothing more than extensions of the Chinese Communist Party. Huawei’s CEO was an engineer for the People’s Liberation Army. The company’s livelihood consists largely of a steady stream of government contracts. And its greatest claim to fame is shamelessly stealing the secrets of American companies. That’s why it’s under investigation by the Department of Justice for that and for violating sanctions against Iran. American companies are also feeling pressure for ties to the Chinese smartphone company. AT&T for example dropped a deal with Huawei to sell their phones at the start of 2018 All of this is happening before 5G potentially reshapes the telecom industry. 5G networks are superfast and they’re designed to support the next generation of the Internet. 5G is supposed to power not only smartphones but also driverless cars and web connected factories. Huawei wants to become a major player in 5G outside of China. But it’s facing pressure internationally because of cybersecurity concerns dogging the company. The U.S. is urging its allies to block Huawei from 5G projects in their countries And both Australia and New Zealand recently did just that. So as the legal drama involving Meng plays out and continues to rattle global markets, remember it’s part of a years long struggle between Huawei and those who worry about its alleged close connections to Chinese spies.

24 thoughts on “Why The US Thinks Huawei Is A National Security Threat”

  1. Well played Nokia, they put the poison in so well, well enough to give Nokia an edge, but nothing too liable and now they simply 'distance' themselves from one man's comments – damage done. Nokia deny any endorsement of their senior execs opinion and act like they are innocent. Cry me a river Nokia, it's you I don't trust.

  2. National threat my ass, why lift the ban now huh?? US has been seen as a cheapskate child play banning bully

  3. Main reason behind this ban is that, huawei is now more superior than apple. And America can't digest it.

  4. yes, but how? you dont explain how? theres literally thousands of people who knows how smartphone devices work, if anyone should accuse them(huawei) they should be the one accusing them and not these paranoid politicians..
    they're just mad that a chinese company is doing well instead of apple..
    and im not a chinese fanboy i actually hate china, but i hate apple more and alot of these upperclass americans are probably with apple because they own parts of it.

  5. China is a communist nation and needs to be eradicated from the face of the earth. They are spying on their own citizens and now they want to spy on the rest of the world. Do not buy anything made in China.
    https://www.youtube.com/watch?v=eViswN602_k

  6. This comment section is full of scarecrows.

    (And anyone who likes to argue and prove points gets the scarecrow reference)

  7. @ 2:19 "…… any entity or company that is beholden to foreign governments that don't share our values TO GAIN POSITIONS OF POWER inside our telecommunications networks ……"

    I don't see how HUAWEI can be stopped from gaining Greater Positions of Power in 5G and possibly in AI…. But you can learn from China and start investing more in your youth and in your universities (there are many that are closing for lack of funds)!

    In its treatment of Huawei (the underdog here), the US has lost face. 5 months ago, I've never heard of Huawei…. now thanks to POTUS DJ Trump, I have read most of China's History since 1830.
    I wish you well. Pax vobiscum.

  8. The independent security firm, Finite State, did an exhaustive study of the firmware images of thousands of Huawei products. Just as recently as June 2019, its bug hunters concluded that 55 percent of Huawei products, had at least one potential backdoor, which is to say a serious or critical CVE-assigned (Common Vulnerabilities and Exposed) flaw that an attacker may be able to exploit.
    https://youtu.be/iLJajPfk8Bw

  9. now you know why china ban google and facebook at very beginning, do you really think it is just for some freedom of speech? it is for protecting the data of Chinese not flowing into the USA leading companies.

  10. If America cannot beat them, why not join them instead.. If America feels huawei is a threat! Why dont America tell China to share their technology and make a difference together. By challenging another .. Why not Become franchise lol

  11. huawei might not spy on americans that is the task from the NSA…
    besides facebook,google,microsoft and apple yes yes 4 other american companies spy on their users too
    but ofcourse that is no problem for trump right?
    I have an P30 pro
    what I can say is that my battery lasts much longer than any other smartphone I have ever had
    and the phone is great overall

  12. None of u understand why…
    They banned it becouse it is treat to a country…
    Japan also banned huawei.. Why? Dint u know that Before Japan Lost Jetplain Near China. and Never tobe found, Even a Scrap.

    Hehe china even claims island wich is far at them but near at other countries.. so why not suspected they did not even follow Laws.

  13. I just bought a Huawei an hour ago. Reading the End User License Agreement.
    It says:
    ALL DATA COLLECTED FROM YOUR DEVICE MAY BE PROCESSED OR TRANSFERRED TO HUAWEI & IT'S AFFILIATES/LICENSERS IN COUNTRIES OUTSIDE OF THE COUBTRY YOU RESIDE. THIS MEANS THE DATA MAY BE TRANSFERRED TO OR ACCESSED FROM OTHER JURISDICTIONS WHICH ARE OUTSIDE OF THE COUNTRY. HUAWEI ONLY RETAINS YOUR DATA FOR THE PERIOD NECESSARY TO FULFILL THE PURPOSES OUTLINED IN THIS AGREEMENT AND THE PRIVACY POLICY, UNLESS A LONGER RETENTION PERIOD IS REQUIRED OR PERMITTED BY LAW. WHILE HUAWEI TAKES ALL APPROPRIATE TECHNICAL AND ORGANISATIONAL STEPS TO PREVENT UNAUTHORISED ACCESS TO OR DISCLOSURE OF YOUR DATA, PLEASE NOTE THAT NO SECURITY MEASURES ARE COMPLETELY INFALLIBLE.

    DOES THIS MEAN MY INFORMATION IS NOT SAFE? Say I download my banking app, will they have access to my logins and access to photos??

  14. I supposed to watch how the huawei phones are made and I accidentally press this video and not even touching it maybe huawei is sensitive on touches

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