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from Ian Bremmer:

America’s way or Huawei

If you watched the third presidential debate this week, you got the sense that in the U.S.-China relationship, there are only good guys and bad guys, and all the bad guys are in China. The Americans are the valiant defenders of well-paying jobs; the Chinese are the ones who make tires so cheap it hurts the Americans. The Americans have a currency so free it’s the envy of the world; China’s is so manipulated it stunts competition the world over. But the squabbling isn’t limited to what you heard at the debate or just the two governments. It’s also happening between governments and private companies.

For years, Huawei, a Chinese telecom giant, has been trying to break into the U.S. market. Huawei wants to provide communication infrastructure to the U.S., but the U.S. wants to make sure Huawei, founded by former members of the People’s Liberation Army, isn’t actually a spy organization. Huawei claims to be just like any other Silicon Valley tech giant. U.S. intelligence agencies, despite finding no evidence of spying, view Huawei’s technology as too vulnerable to hackers. The House Intelligence Committee classified Huawei as a national security threat. State capitalism and the challenge it poses have expanded enough that the government is officially worried about them.

The U.S. appears to be coordinating with the Canadians to resist Huawei’s advances. Stephen Harper, the Canadian Prime Minister, called his country’s relationship with China “complex” and acknowledged that there’s a national security dimension to its dealings with Huawei. In the midst of investing in cyber security, the Canadian government is also considering whether to allow Huawei to bid on building a new national email system.

The challenge for the U.S. is in developing even broader coordination against Huawei’s advances -- and it won’t come easy. Granted, Britain’s Parliament is investigating the relationship between Huawei and British Telecom, but that doesn’t mean the U.K. will adopt the American stance. In response to the U.S. committee’s anti-Huawei announcement, British Prime Minister David Cameron came out and said his government would not change its relationship with the company. Huawei employs 800 people in the U.K. and a recent $2 billion investment will create 700 more jobs in years to come. Europe will be even more difficult to convince -- Huawei is already well-established there, with $3.75 billion in sales in 2011; the relationship is just too lucrative for recession-riddled countries to pass on.

from The Great Debate:

America’s way or Huawei

If you watched the third presidential debate this week, you got the sense that in the U.S.-China relationship, there are only good guys and bad guys, and all the bad guys are in China. The Americans are the valiant defenders of well-paying jobs; the Chinese are the ones who make tires so cheap it hurts the Americans. The Americans have a currency so free it’s the envy of the world; China’s is so manipulated it stunts competition the world over. But the squabbling isn’t limited to what you heard at the debate or just the two governments. It’s also happening between governments and private companies.

For years, Huawei, a Chinese telecom giant, has been trying to break into the U.S. market. Huawei wants to provide communication infrastructure to the U.S., but the U.S. wants to make sure Huawei, founded by former members of the People’s Liberation Army, isn’t actually a spy organization. Huawei claims to be just like any other Silicon Valley tech giant. U.S. intelligence agencies, despite finding no evidence of spying, view Huawei’s technology as too vulnerable to hackers. The House Intelligence Committee classified Huawei as a national security threat. State capitalism and the challenge it poses have expanded enough that the government is officially worried about them.

from Breakingviews:

China’s telco suppliers can’t escape spying row

By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Earning the trust of Americans is proving a Sisyphean task for Huawei. The Chinese telecom supplier has consistently fought reports of too-close ties to the People’s Liberation Army and undue influence from Beijing. Now a panel of U.S. congressmen has publicly labelled the employee-owned group and its rival ZTE a security threat. True or not, the accusation is a serious blow.

from MediaFile:

Tech wrap: Huawei takes slimmest smartphone crown

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Huawei, China's largest maker of telecommunications gear, unveiled the "Ascend" smartphone, touting it as the slimmest on the market as it moves to boost its share on the global consumer market. Huawei unveiled the Ascend smartphones - available in black, white and pink - at the Consumer Electronics Show in Las Vegas. The 6.68-mm thin phone will be available in April 2012 in markets from North America, Europe to Asia and will cost roughly $400, but the final price has not been set, the company said.

AT&T announced plans to launch seven new smartphones and a tablet computer early this year for a new wireless network it is building. The product line-up will include a phone with a 16 megapixel camera from HTC using Microsoft software along with Microsoft-based smartphone from Nokia. AT&T said it will also sell three new high-speed smartphones from Samsung as well as a high-speed phone from Sony and Pantech. In an unusual pricing move, AT&T also announced that it would sell Pantech Element, a waterproof tablet based on Google Android software with a smartphone, the Pantech Burst, for a combined price of $249.

from MediaFile:

Tech wrap: Google targets Apple with Motorola buy

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Setting its sights on rival Apple, Google announced its biggest deal ever, a $12.5 billion cash acquisition of mobile phone maker Motorola Mobility.

Google's biggest foray into hardware comes weeks after a failed attempt to buy patents from bankrupt Nortel, and gives it an intellectual property library in wireless telephony to wage war on Apple and Microsoft.

from Commentaries:

Bon chance getting this deal done, Alcatel-Lucent

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It beggars belief that humbled telecom equipment supplier Alcatel-Lucent could be scooped up by a Chinese rival with nothing better to do. Huawei or ZTE seem credible candidates. The question is, why would they ever bother?

PLA soldiers perform during a rehearsal of a musical drama in Beijing

That didn't stop shares of Alcatel-Lucent from rocketing up as much as 21 percent on Wednesday on rumors of an unnamed suitor. Momentum was helped by a rating upgrade on the depressed stock by French broker Natixis. The shares later settled back somewhat to trade at 2.75 euros, up 12 percent on the day in Paris.

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