Skip to content

Information/Technology - 2. page

Another Major Apple Supplier Is Moving Out of China

Well-known Chinese news site Sohu recently reported that, in June, major Apple supplier Pegatron will start Apple production assembly lines in Indonesia. The initial products include the MacBook and the iPad. Pegatron is the second largest Apple manufacturer after Foxconn, which already announced that, later this year, its mass production of iPhones will be in India. It was first reported in January that Pegatron had a tentative plan to move out of Mainland China. Potential locations included India, Indonesia, and Vietnam. According to Indonesian local reports, Pegatron selected Indonesia instead of Vietnam based on a better supply of labor. Given the Trump administration’s earlier tariff increase, as well as the Huawei case, it is reasonable that Pegatron would prefer to move its manufacturing facilities out of China. Pegatron did not officially confirm which customers the Indonesian factories will serve. However, all products will ship to the United States.

Source: Sohu, May 24, 2019

UDN: South Korean Industries Push New Laws to Prevent Core Technologies from Leaking to China

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that South Korean industrial associations are pushing new laws to impose heavy punishment for leaking the nation’s core technologies. In the past years, major South Korean industries like semiconductors, displays, and automobiles have been seeing a severe outflow of core technologies and key talent to China. The proposed new laws include a redefinition of core national technologies and information protection, as well as punishment for leaking the core technologies. The damage from losing technologies and talent to China is having a more and more significant impact. The proposal also asked for establishing limitations on the movements of core people and for a Non-Disclosure Agreement (NDA) to be a required document for talent working on core technologies to sign.

Source: UDN, May 18, 2019

Baidu Reported Massive Loss in Q1

Well-known Chinese news site Sina recently reported that the Chinese search engine giant Baidu reported a massive loss in its just-released first quarter financial report. The report indicated that Baidu suffered a net loss of RMB 327 million (around US$49 million) in the first quarter. Last year, in same time period, Baidu reported a net profit of RMB 6.694 billion (around US$967 million). This is the first time since Baidu went public in 2005 that it has reported a loss. Immediately after the report was released, its stock price dropped by 16 percent and reached a three and a half year low. Instantly, the market value shrank by US$8.7 billion. Baidu’s Sr. Vice President who is Chief of the Search Engine Business Group Xiang Hailong resigned at the same time that the report was released. Baidu’s search engine represents the company’s core business and enjoys a near monopoly position in China’s search market, with government backing as well as a Google ban. Market experts expressed their belief that, by examining reports from other similar companies, Baidu’s report indeed reflected the adjustments in the economy.

Source: Sina, May 19, 2019

Lianhe Zaobao: Google Partially Paused Business Relations with Huawei

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, with the ban that the U.S. government issued, Google paused the execution of some of its business agreements with Huawei. Other than Google’s open-source version of Android, Huawei can no longer use Google applications on Android, such as Gmail and Google Maps. This will have an immediate impact on Huawei’s cellphones sold internationally. The overseas handsets, even the latest next generation models, are not going to be able to visit Google’s Google Play application store and popular apps. Some of the details are still being discussed internally at Google. This is a direct result of U.S. Department of Commerce’s new rules on controls applied to direct business activities with companies that may threaten the U.S. national security. Huawei is one of the 68 companies in 26 countries that are included on the black list. Reuters reported the news and the chief of the U.S. online tech news site The Verge confirmed it.

Source: Lianhe Zaobao, May 20, 2019

Epoch Times: Huawei Has “Backdoor” into Dutch Telecoms Network

Epoch Times reported that the Dutch media recently revealed that mainland telecom giant Huawei has a “backdoor” into the network of a major Dutch telecommunications company, possibly in order to obtain customer information. According to a report the Dutch De Volkskrant published on the 16th, the Dutch intelligence and security agency AIVD is investigating whether China is conducting espionage. At the beginning of April, AIVD named China and Russia, warning the Dutch not to rely on the hardware and software equipment made by these two countries. It pointed out that China and Russia have adopted an aggressive network strategy against the Netherlands, jeopardizing the interests of the Netherlands.

According to Epoch Times, this is not the first time that Huawei was accused of installing a “backdoor” on its devices. At the end of April this year, Bloomberg broke the news that Vodafone, the world’s second-largest mobile operator, admitted that, a few years ago, it had discovered that the equipment supplied by Huawei to Vodafone’s Italian business had a backdoor. On March 29, the US technology website Lightreading reported that Microsoft engineers found the “backdoor” on Huawei laptops through the installed “Microsoft Defender Advanced Threat Protection” used in Windows 10. On December 11, 2018, Fuji TV Japan quoted officials from the Japanese Liberal Democratic Party as saying that after disassembling Huawei equipment, the Japanese government discovered that there were “unnecessary parts” in the hardware. In 2017, a person who claimed to be an internal employee of Huawei disclosed in the social media that Huawei’s mobile phones and computers are equipped with spying software. In September 2015, the famous hacker media “The Hacker News” reported that G-Data, a security company from Germany, found that 26 Chinese-made smartphones, including Huawei, had pre-installed spyware in their firmware. In addition, Huawei is accused of having close ties with the Chinese authorities. It has actively participated in projects such as the Golden Shield Project and is the backbone enterprise for China’s Internet censorship and its national security monitoring system.

Source: Epoch Times, May 16, 2019

A Chinese High School Recommend Students Buy Huawei’s Customized Mobile Phone

On May 11, a high school in Liuzhou City in China’s southwest Guangxi Province recommended that students purchase Huawei’s customized mobile phone, claiming that it can manage students’ mobile phone usage, automatically filter bad messages, and record student violations. According to photos that netizens provided, this customized version of the Huawei Nova4 mobile phone has a management platform that Huawei’s Wuhan Research Institute developed.

The phone has several major functions. It can manage students’ time by locking and unlocking the phone at different times, such as class time, lunch break, nightly bedtime, or holidays, so as to avoid students’ excessive usage. The system will also automatically filter 500 million pieces of “bad” website information related to pornography and violence. The school can distribute notices to students via its back-end, and if a student is given a “misconduct” in phone usage, the system will keep a record.

Although the high school’s deputy principal said that this was a recommendation at the request of parents and not a mandatory purchase, the news triggered heated discussion among Mainland netizens. Some people criticized Huawei for launching such a mobile phone at such a sensitive time. Some questioned, “Who gives Huawei the power to monitor the lives of others under the banner of serving the good of students?” Others joked that this is “buying and bringing ‘big brother’ home.”

Source: Central News Agency, May 13, 2019