Tuesday, March 18, 2014

Before Snowden, There Was Huawei

HUAWEI (pronounced wah-way) Shenzen, China. CEO Ren Zheng-Fei. EMPLOYES 87,500. Total revenues for most recent fiscal year $23.3 Billion [2008.] via Fast Company


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The concern was that somehow, with Huawei’s knowledge or without it, the Chinese government could use equipment sold by the company to eavesdrop or even to gain an advantage in a cyberwar. Huawei loudly denied the charges; it cried “discrimination.”

The irony now is that leaked National Security Agency documents suggest the U.S. was doing everything it suspected China of. The documents indicate that the U.S. may have compromised routers from Cisco, Juniper, and Huawei. It’s also believed to have weakened encryption products so the ciphers used by commercial software could be broken.

The companies named in those leaks all deny knowing of the backdoors. All say they are investigating. But the loss of trust is hurting U.S. companies. In December, Cisco said the allegations caused a significant drop in sales in China. “It’s causing people to stop and then rethink decisions,” Robert Lloyd, Cisco’s president of development and sales, told investors. IBM’s hardware sales in China plunged 40 percent in the financial quarter following the leaks.

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Read More:  http://www.technologyreview.com/news/525596/before-snowden-there-was-huawei/

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