US Report Undermines Huawei Expansion Plans - Wall Street Journal [getdailynow.blogspot.com]
FIRE CANYON NevadaShimmering red color surrounds Fire Canyon in the US State of Nevada's oldest national park. The Valley of Fire Conservation Area was founded in 1935 and the valley derived its name from the fascinating blazing red color of its sandstone. Several of the rock formations in Fire Canyon resemble huge works of art and gigantic sculptures. As the sun moves almost imperceptibly across the sky, it continuously transforms the magnificent kaleidoscopic colors of the rocks below. The desert is illuminated in brilliant reds, browns and yellows while the rocks glow with a fiery intensity. The undulating terrain, the rocks and the arid conditions are all silent witnesses of the origin and creation of this legendary desert landscape.
By JURO OSAWA
HONG KONGâ€"A damning U.S. Congressional report represents one of the biggest threats to plans by China's Huawei Technologies Co. and ZTE Corp. to expand into developed markets, not only by tainting public perceptions of the companies but also potentially prompting further investigations into their businesses, analysts say.
The U.S. is one of few major markets where Huawei, the world's second-largest telecommunications equipment supplier after Sweden's Ericsson, hasn't been able to expand. Whether Huawei can penetrate the critical U.S. marketâ€"a major market for Ericsson and Nokia Siemens Networksâ€"will determine the rate of the Chinese technology giant's overall growth.
In a report, the U.S. House intelligence committee says that Huawei and Chinese telecom equipment supplier ZTE Corp. pose security risks and that the U.S. government should avoid using the two companies' equipment.
The report comes at a time when Huawei is struggling to establish its credentials in the U.S. Political rhetoric against Beijing is intensifying as the U.S. presidential election nears and as China gains clout in global affairs. China has become a key issue in the race between Democratic presidential incumbent Barack Obama and Republican candidate Mitt Romney, both of whom have spoken out vociferously against what they say are unfair trade practices and currency manipulation by Beijing. Mr. Romney has berated Mr. Obama for not taking a harder line against China.
In response Huawei said it "has not seen the committee report so has no familiarity with such allegations…The security and integrity of our products are world proven. Those are the facts, political agendas aside."
ZTE also defended its equipment. "ZTE's equipment is evaluated by an independent U.S. threat-assessment laboratory with oversight by U.S. government agencies."
ZTE shares fell 6% to close Monday at 12.6 Hong Kong dollars (US$ 1.63) on the Hong Kong exchange.
Also on Monday, ZTE said that Cisco Systems Inc. severed a strategic cooperation agreement because of U.S. allegations the Chinese company sold equipment to Iran. Cisco notified ZTE several days ago that it would end a strategic partnership agreement with the Shenzhen-based company that dated to about 2005 and included resale of equipment produced by the U.S. company, a ZTE spokesman said Monday.
The spokesman, David Dai Shu (surname: Mr. Dai), said he wasn't aware of specific reasons cited by Cisco but that "we know it's related to Iran" and U.S. government scrutiny of Chinese business deals there.
Mr. Dai also supplied a ZTE corporate statement: "ZTE is highly concerned with the matter and is communicating with Cisco. At the same time, ZTE is actively cooperating with the U.S. government about the probe to Iran. We believe it will be properly addressed."
Cisco couldn't immediately be reached for comment. Cancellation of the strategic cooperation agreement was reported Monday by Reuters.
For Huawei, the result of the U.S. committee's probe "limits [its] growth potential over the next few years," said Jefferies analyst Cynthia Meng.
"It will be difficult for U.S. telecom operators and other U.S. companies to choose Huawei or ZTE" as their suppliers, she said.
The U.S. House intelligence committee had been investigating Huawei and ZTE over the past year over concerns among some Washington lawmakers that their equipment could be used for spying on Americans.
At a daily press briefing on Monday, Chinese Foreign Ministry spokesman Hong Lei said that China's telecommunications companies "develop their international businesses according to market economy principles. The investments they make in the U.S. show the win-win aspect of China-U.S. trade relations."
Mr. Hong added, "We hope that the U.S. Congress can reject bias, respect the facts and do more to promote China-U.S. economic relations, rather than the opposite."
The worst-case scenario for Huawei and ZTE would be the U.S. committee's report prompting similar investigations by European governments based on concerns about security risks, said Barclays analyst Jones Ku. "I wouldn't rule out the possibility of an investigation in Europe," said Mr. Ku, who covers Hong Kong-listed ZTE but not Huawei, which is a private company.
The U.S. market is also important for Huawei's efforts to expand beyond the telecom sector. As the overall growth slows in the telecom-equipment market, the company is investing more in so-called enterprise infrastructure businesses such as communication systems, data centers and other technology services for corporate clients, taking on powerful rivals such as Cisco Systems Inc. of the U.S.
Huawei entered the U.S. market in 2001, and it now has 13 offices across the country with about 1,800 employees. According to the company, its current U.S. clients include telecom operators such as MetroPCS Communications Inc. and Clearwire Corp.
But its U.S. sales, which stood at $ 1.3 billion last year, accounted for just 4% of Huawei's overall revenue of about $ 32 billion. By contrast, Europe accounted for 13% of the company's revenue.
â€"James T. Areddy in Shanghai and Olivia Geng in Beijing contributed to this article.Write to Juro Osawa at juro.osawa@dowjones.com
Recommend US Report Undermines Huawei Expansion Plans - Wall Street Journal Articles Question by magick: How is it possible for Boehner to state " we do not have a revenue problem " ? BILLIONS of dollars in LOOPHOLES ! Is Boehner in an " alternate " universe ? Bush area tax cuts SCHEDULED TO EXPIRE YEARS AGO account for 50 % of the deficit ... @ ken : do not qualify for the " loophole " class . Just another dumb tax payer .. @ Andy F : I did indeed mean ERA . Thanks Best answer for How is it possible for Boehner to state " we do not have a revenue problem " ?:
Answer by USAF 1983-1987
weeping john-boy is a pathological liar, that's how.
Answer by jeweljvh
We don't have a revenue problem, we have an economic problem. Turn back all the crap Obama has done and we will come out of that and have more revenue. Taxing more creates LESS revenue because it decreases Economic activity. It's a fact Keynesian Economics would tell you that higher taxes give higher revenue and more debt is good and government spending brings us economic prosperity ... but it's a big LIE. Keynesian Economics was created by the Elite to push resources from the hands of Commoners into the hands of the Elite. Keynesian Economics is much like the Federal Reserve Bank, created to fleece the sheep. Don't buy into that crap, it's deliberate and damaging propaganda unless you're George Soros, William Buffet or the Rothschilds or Rockefellers or Kerry's or Pelosi, Al Gore ... those super rich assholes who just pay off politicians and never pay taxes anyway. High Taxes destroy the job creators in the country that usually get us out of hard times, small business. They don't have enough to buy off Obama and his crew of scum bags so they don't have to pay taxes. Those super rich almost all support democrats, take a guess why?
Answer by T-Bone
To answer your question; Government has no right to spend more than it takes in......so revenue is never the problem......period. Plus Republicans are doing the job Nancy Pelosi should have done before October 2010 of last year....
Answer by ken
Because we have a spending problem. The government spends about 1/4 of the GDP. That is too much. Should be less the 20% because no matter what the tax rates are that is what the government will take in. Or it could be because you personally do not send in enough money. @ ken : do not qualify for the " loophole " class . Just another dumb tax payer .. What does this mean?
Answer by apeman605
If your household spends more than you earn, then your problem may be your uneducated minimum wage Democrat job, but you need to spend less. So does the government.
Answer by C.O. Jones
We don't have a revenue problem. We have a spending problem.
Answer by Tennesee Tuxedo
Revenues are twice what they were 50 years ago so why would this be a revenue problem?
Answer by Andy F
I agree that Boehner is crazy -- well, not crazy, probably, but lying his fool head off. Or at least "ignoring the elephant in the room," as the saying goes. If we add the Reagan tax cuts to the GW Bush tax cuts, of course, the role of the "revenue side" in the budget crisis is even more obvious. The GOP has been slashing taxes for 30 years on upper-class taxpayers and corporations, and now they're crying "budget crisis" when it comes to funding liberal social programs for the middle class and the poor. This is dishonest politics; nasty and cruel, too.. By the way -- you meant to write "Bush ERA" tax cuts, didn't you? Not "Bush AREA" tax cuts? I make bushels of typos like this one, unfortunately. So I'm not trying to play gotcha with you. But I need to proofread my questions more before posting them; and you probably should do the same. The typo aside, you asked a great question. Keep it up!
Answer by aeriol7
the truly sad case for what passes for economics in America ...government has both a revenue problem because it will cut programs needed for less off Americans and a spending problem of giving monies to those in entitlements who don't need it ! Government also has a banking problem in that small business gets no loans from small banking and large banking prefers the market to business loans these days. The two parties could care less about business people in this country. While credit debt remains high and job gains are less than job lost.
Dawn of War 2: Retribution - Space Marines (Episode 2)Ten years after the events of Chaos Rising and the fall of the Blood Raven's Chapter Master to Chaos, Sub-Sector Aurelia remains in a state of constant warfare. The pirate Freebooter Orks have arrived to take advantage of this and loot the sector, the vile forces of Chaos continue to spread their blasphemy, the Eldar of Craftworld Alaitoc work to recover key artifacts from their past, and the feral Tyranids remaining from the failed Hive fleet invasion have suddenly reestablished contact with the Hive Mind. Choose your race and determine the final fate of the entire sector, in Dawn of War II: Retribution the next installment in the critically acclaimed Dawn of War real-time strategy franchise. You can find Dawn of War 2 on steam at: store.steampowered.com
0 comments:
Post a Comment