China has a certain… reputation, so to speak. Though its truth is debatable, China’s stigmatized reputation as a copycat has always stuck with the country throughout the ages. Several tech companies have tried shaking it off by delivering crisp and revolutionary products. Some parties, however, have not helped China’s rebranding.
Recently, Samsung’s suppliers were caught selling the company’s technology to an undisclosed company in China. The Korean supplier, Toptec Co Ltd, sold Samsung’s curved-edge OLED screens for a whopping KRW 15.5 billion. The screen has been an essential Samsung component since the Galaxy S6 series.
Reportedly, Toptec founded a shell company to obtain Samsung’s detailed plans. The faux group, then, passed on these sensitive documents to the China-based firm. Besides the actual sale, the firm breached a non-disclosure agreement. The Suwon District Prosecutor’s Office charged nine individuals and two companies. Despite the indictment, Toptec maintains innocence, denying all allegations.
According to Bloomberg, Samsung spent six years and KRW 150 billion to develop the technology. Needless to say, Samsung Display was “shocked at the results of the investigation by prosecutors.”
According to prosecutors, the firm sold the technology after a collapse in sales numbers. Highly likely, Samsung’s decision to use different screens next year led to this dip. Regardless, Toptec’s decision is a massive slip-up especially because competition has been heating up as of late.
As for China, however, any advantage is a good advantage, apparently. Now, the undisclosed Chinese client has a leg up over its Samsung rivals.
Huawei pledges $2 billion to secure cybersecurity of hardware
It starts in Britain for now
Throughout the past few weeks, Sinophobia has reached an all-time high. Various countries have started banning Chinese telecommunications companies from taking over their technology market. Huawei and ZTE have faced tremendous adversity while expanding their 5G operations. Of note, the US, the UK, and Australia have stopped Huawei’s 5G plans before they could start.
It was only a matter of time before Huawei responds. Now, the company has finally promised to solve these crucial cybersecurity issues. In Britain, Huawei has met with government officials regarding their ban. Like the rest of the Western world, Britain criticized Huawei’s technology as potential backdoors for Chinese espionage.
Both parties have agreed to a compromise. To alleviate Britain’s fears, Huawei will pledge US$ 2 billion for cybersecurity. The company will then attempt to solve whatever Britain found in cybersecurity investigations.
While the United Kingdom is more forgiving, other countries are still very wary. After the initial lineup of banning countries, Japan has joined the conversation. The country is working to ban both Huawei and ZTE from 5G development as well. With that, Japan will be the first Asian country to ban both companies. Western fears are now invading the East.
At the other end of the world, Huawei is also facing another crisis. The company’s chief finance officer, Meng Wanzhou, was recently arrested for allegedly violating embargo regulations. According to Huawei, their retaliation plans in Britain were made before the arrest. Thus, the arrest is another separate battle that awaits the company after issues of cybersecurity.
Huawei is in a world of pain. Despite offering amazing products, the company can’t find any traction in hardware development. Geopolitical fears have and will continue to bog down the company throughout the rise of 5G networking.
UK’s largest telco removes all Huawei equipment from core 4G network
The Chinese company continues to take hits
Huawei smartphones are selling like hotcakes and are well-received by consumers and reviewers alike, although things are not looking good on the enterprise side. Earlier this year, the US started to make things hard for the Chinese company by labeling them as a threat. More countries have considered the warning, and everything has gone haywire ever since.
The latest related news is from the United Kingdom. The region’s largest mobile provider BT Group Plc plans to remove Huawei’s technologies and equipment from their core 4G network, according to a Financial Times report.
But, this doesn’t mean Huawei will be 100 percent wiped from the network. The report mentioned that BT will continue to use Huawei’s kit in what they consider to be benign parts of the network.
The telco’s move comes after the head of MI6 foreign intelligence service singled out the Chinese company as a potential security risk because of its alleged close ties with the Chinese government, something both parties deny.
BT said they have been in the process of removing Huawei equipment from instrumental parts of their 3G and 4G networks since 2016.
Furthermore, BT has decided to not include Huawei’s services in building the next-generation 5G network.
Huawei executive arrested in Canada, faces charges in US
Exec is daughter of Huawei founder
After much ado on the US front, Huawei’s multi-chapter drama finally reached foreign soil. Recently, more countries are contemplating a ban on the company’s hardware. Despite celebrating a multitude of new launches, Huawei’s distribution is facing a potential crisis.
With all the hullaballoo, one can forget how this all started. About a year ago, the company was caught illegally trading with Iran. The United States government quickly lambasted them for breaking the law. Over the past year, the initial controversy morphed into distrust over China’s government. Now, it’s come full circle.
Last week, Canadian authorities have arrested Huawei’s chief financial officer, Wanzhou Meng. The Huawei official was in the country only briefly, switching flights at an airport in Vancouver. During this brief time, US officials requested Canada for Meng’s arrest.
According to The Globe and Mail, Meng was arrested for evading the States’ current embargo against Iran. Huawei’s past comes back to bite the company. Meng is expected to be extradited in New York where she will face the US judiciary system.
Of note, Meng is the daughter of Huawei’s founder, Ren Zhengfei. In turn, Zhengfei is a known member of the Communist Party.
The arrest comes at a very interesting time. Currently, Huawei is in the middle of a global expansion in preparation for the rise of 5G networks. Going against this, other countries are vehemently preventing China from taking over the next generation of networking.
Further, President Trump was recently considering increased tariffs for Chinese products. Sinophobia is at an all-time high.
In response, Huawei has asked to limit the arrest’s public details. Likewise, the Chinese embassy in Canada has asked for Meng’s release, saying that she didn’t break any Canadian or US laws. Canada’s steadfast actions, however, clearly places the country behind the US in the feud.
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