Huawei Continues Financial Rebound Despite U.S. Sanctions

Chinese telecommunications firm Huawei Technologies continues to bounce back after taking an initial hit from U.S. sanctions resulting from the company being declared a national security threat in 2019. Year-over-year, net profit surged 564 percent to $2.7 billion in Q1, with revenue up 37 percent to $24.65 billion. It was the company’s fourth consecutive quarterly profit gain. Although Huawei doesn’t breakout performance for individual sectors, analysts estimate the company’s smartphone sales rose 70 percent, leading to further speculation the global firm is taking market share from rivals, particularly Apple in China. Continue reading Huawei Continues Financial Rebound Despite U.S. Sanctions

Nvidia Sales Surge as Rivals Circle and China Sanctions Loom

Nvidia logged another record quarter, with Q3 revenue of $18.12 billion, up 206 percent from a year ago and a 34 percent increase from Q2 that exceeded both its own and analyst projections. The surge, attributed to increasing demand for the chips that drive artificial intelligence, logged primarily under Nvidia’s data center results a record $14.51 billion, up 279 percent from the prior year and 41 percent from Q2. Profits swelled to $9.2 billion, a stunning 1,259 percent increase from 2022’s $680 million. The results for Nvidia’s Q3 were for the three-month period ending October 31. Continue reading Nvidia Sales Surge as Rivals Circle and China Sanctions Loom

Germany, France and Italy Strike AI Deal, Pushing EU Forward

Germany, France and Italy have reached an agreement on a strategy to regulate artificial intelligence. The agreement comes on the heels of infighting among key European Union member states that has held up legislation and could potentially accelerate the broader EU negotiations. The three governments support binding voluntary commitments for large and small AI providers and endorse “mandatory self-regulation through codes of conduct” for foundation models while opposing “un-tested norms.” The paper underscores that “the AI Act regulates the application of AI and not the technology as such” and says the “inherent risks” are in the application, not the technology. Continue reading Germany, France and Italy Strike AI Deal, Pushing EU Forward

Baidu Rushes Ernie Launch to Meet China’s Chatbot Demand

China’s Baidu is racing to meet the March 16 deadline to debut Ernie Bot, which it hopes will be the Eastern equivalent to OpenAI’s ChatGPT. Teams have been working around the clock. In addition to programming duties, staff has been reaching out to borrow compute time on high-powered processors that Chinese companies can no longer purchase at their discretion due to U.S. sanctions. Ernie is still being trained ahead of its highly anticipated launch. Baidu intends to roll out its chatbot in stages, first to a limited pool of public users who can provide test feedback, observers say. Continue reading Baidu Rushes Ernie Launch to Meet China’s Chatbot Demand

France Sanctions Clearview AI €20M for Violating GDPR Rules

Clearview AI, the New York-based facial recognition firm that is targeting 100 billion facial images in its database by the close of 2022, has been fined €20 million ($19.7 million) by France’s data protection authority, the CNIL, for what the agency says is the illegal collection and processing of personal biometric data belonging to French citizens. The fine comes after the CNIL last year ordered Clearview to cease data collection and delete its existing database, instructions the company reportedly ignored. This is Clearview’s third breach of the EU General Data Protection Regulation (GDPR) pertaining to France. Continue reading France Sanctions Clearview AI €20M for Violating GDPR Rules

Taiwan’s Foxconn to Invest $800 Million in Chinese Chip Firm

China’s troubled Tsinghua Unigroup chip conglomerate is about to get an $800 million infusion from Taiwan’s Foxconn in the consumer electronics giant’s bid to expand its electric vehicle activity. Battery-powered cars generally require more semiconductors than those that run on gas, and analysts say Tsinghua Unigroup is attractive to Foxconn — which makes everything from iPhones to Xboxes — for its mobile chipset and memory expertise. In 2021, Foxconn secured a deal with U.S. automotive startup Fisker to jointly manufacture electric cars with automotive chips Foxconn plans to develop with Stellantis. Continue reading Taiwan’s Foxconn to Invest $800 Million in Chinese Chip Firm

Treasury Issues Crypto Guidance for Sanctions Compliance

The U.S. Treasury Department has issued guidelines specifying how to ensure virtual currency transactions comply with the government’s sanctions policies, a move by the Biden administration to thwart ransomware attacks, money laundering and other abuses. The new rules emphasize using geolocation tools that block IP addresses from sanctioned countries, ongoing monitoring of sanctioned entities and individuals and periodic review of transactions involving blacklisted virtual currency addresses. Treasury’s Financial Crimes Enforcement Network has had virtual currency rules in place since at least 2011, but this update gives the directives new teeth. Continue reading Treasury Issues Crypto Guidance for Sanctions Compliance

U.S. Takes Steps Against Russian and Chinese Cyberattacks

Blaming Russia for attacks that interfered in the 2020 U.S. presidential election, President Biden imposed new sanctions on 32 entities and individuals in that country. Although sanctions will make it more difficult to partake in the global economy, the White House did not immediately limit Russia’s ability to borrow money on the global market. Biden noted he “chose to be proportionate” and “is not looking to kick off a cycle of escalation and conflict with Russia.” The FBI has also recently taken strong steps to stop Chinese hacking. Continue reading U.S. Takes Steps Against Russian and Chinese Cyberattacks

Huawei Feels Pinch of U.S. Sanctions, Ericsson Contests Ban

Huawei Technologies’ revenue in 2020 Q4 dropped 11.2 percent to 220.1 billion yuan (about $33.6 billion) from a year earlier. For 2020, revenue grew 3.8 percent to a record-breaking 891.4 billion yuan, but the Q4 drop represents how U.S. sanctions inked in September have made it difficult for Huawei to source advanced chips. Huawei revealed it was one of its slowest years ever for revenue growth. Swedish company Ericsson has been the biggest beneficiary, now surpassing Huawei’s cellular equipment sales. However, the company is defending Huawei, citing the importance of free trade. Continue reading Huawei Feels Pinch of U.S. Sanctions, Ericsson Contests Ban

U.K. Bans the Use of Huawei Equipment for 5G Infrastructure

Reversing a January decision, the U.K. has decided to ban Huawei Technologies gear from its 5G network, giving telecom operators until 2027 to remove existing equipment. Oliver Dowden, the U.K. Secretary of State for Digital, Culture, Media and Sport, said the turnabout was due to U.S. sanctions on Huawei in May. “Given the uncertainty this creates around Huawei’s supply chain, the U.K. can no longer be confident it will be able to guarantee the security of future Huawei 5G equipment,” said Dowden. The Trump administration has been urging allies to join the ban. Continue reading U.K. Bans the Use of Huawei Equipment for 5G Infrastructure

Huawei Increases Use of Its Own Chips in 5G Base Stations

When the Commerce Department banned U.S. manufacturers from selling chips to China’s Huawei Technologies, that company increased its own chipmaking capacity in its semiconductor company HiSilicon. According to U.S.-based Huawei executive Tim Danks, in Q4 the company shipped more than 50,000 5G base stations embedded with its chips, about 8 percent of all base stations it sold up to February this year. Danks reported that, although Huawei is ramping up HiSilicon efforts, it intends to return to U.S. technology when possible. Continue reading Huawei Increases Use of Its Own Chips in 5G Base Stations

U.S. Charges Members of China’s Elite APT10 with Hacking

The Trump administration has charged two Chinese citizens accused of involvement in a state-sponsored effort to steal information from government agencies, various businesses and managed service providers. The hackers are said to be members of China’s elite APT10 group, and prosecutors claim there are direct links between the accused and China’s Ministry of State Security. The U.S. says China’s cyberattacks have become significant national and economic security threats. The latest charges indicate that Chinese authorities directed the hacking campaign. Continue reading U.S. Charges Members of China’s Elite APT10 with Hacking

U.S. Commerce Department Lifts Trade Ban on China’s ZTE

Following a deal made by President Trump, the U.S. Commerce Department has given the go-ahead to Chinese telecom company ZTE to resume its commercial relations with U.S. suppliers. ZTE was told the ban would be lifted once the company placed $400 million into an escrow account and paid a $1 billion fine, part of the penalty the Department had imposed on ZTE for breaking an earlier agreement to not sell to Iran and North Korea. ZTE’s failure to make good on this agreement led the Commerce Department to ban U.S. companies from selling to the Chinese company. Continue reading U.S. Commerce Department Lifts Trade Ban on China’s ZTE

Federal Government Makes Deal to Put ZTE Back in Business

The Trump administration has reportedly reached an agreement that would keep Chinese telecom equipment manufacturer ZTE in business. The deal requires that ZTE pay a major fine, make management changes, and place U.S. compliance officers at the company. ZTE had earlier announced it would cease operations after the White House banned it from buying U.S. tech components in response to ZTE violating U.S. sanctions against North Korea and Iran. The new agreement would permit ZTE to resume its business with Qualcomm and other U.S. companies. Continue reading Federal Government Makes Deal to Put ZTE Back in Business

U.S., China Reportedly Working on Deal That Would Save ZTE

Less than a month ago, the U.S. Commerce Department sanctioned U.S. firms from supplying components to Chinese firm ZTE, claiming that the telecom equipment company had violated terms of a settlement regarding sales to Iran and North Korea. By last week, ZTE had closed its operations and, now, in a surprise intervention, President Donald Trump is stepping in to prevent ZTE’s bankruptcy, tweeting that he is working with Chinese President Xi Jinping. ZTE had made a request for a stay of the sanctions order, and the Commerce Department is reviewing it. Continue reading U.S., China Reportedly Working on Deal That Would Save ZTE