United States

US Blacklists More Chinese Tech Companies (bloomberg.com) 66

The US government is blacklisting Yangtze Memory Technologies, Shanghai Micro Electronics Equipment Group and dozens of other Chinese tech companies, ratcheting up a trade conflict between the world's two largest economies. From a report: The Department of Commerce is placing the companies on the so-called entity list, meaning that anyone seeking to supply them with US technology will require a license from Washington -- something that will likely be difficult to get. Bloomberg News previously reported that the US was preparing to add the companies to the list. The latest restrictions are part of a push to limit China's access to advanced chipmaking and artificial intelligence technology, which the US wants to keep away from the Asian nation's military. In October, the Biden administration unveiled sweeping measures that limit what US companies can sell to the country -- and it's been pushing for allies to go along with the plan.

The idea is to severely restrict China's "ability to leverage artificial intelligence, advanced computing, and other powerful, commercially available technologies for military modernization and human rights abuses," Under Secretary of Commerce for Industry and Security Alan Estevez said in a statement. "This work will continue, as will our efforts to detect and disrupt Russia's efforts to obtain necessary items and technologies for its brutal war against Ukraine, including from Iran." Yangtze Memory and Shanghai Micro were added to the list out of concern that they'll work with Huawei, Hangzhou Hikvision Digital Technology and other companies that the US has decided are either a risk to national security or support oppression by the Chinese government. The two companies are key to China's efforts to build a domestic chipmaking business and wean itself off imports, particularly those from the US. In all, 36 companies are joining the entity list.

China

After US Sanctions, Huawei Seeks New Revenue By Licensing Its 5G Patents to Rival (cnbc.com) 15

CNBC reports: Chinese technology giant Huawei said Friday it will license its 5G technology to rival handset maker Oppo as it looks to unlock a new revenue stream after its smartphone business was crushed by U.S. sanctions....

Huawei has a massive portfolio of over 100,000 patents globally. It is one of the top patent holders in 5G technology, which is next-generation ultra-fast mobile internet seen as key to underpinning future industries such as artificial intelligence and autonomous cars.... The company previously stated that it expected to earn revenue of $1.2 billion to $1.3 billion from licensing its intellectual property between 2019 to 2021. Huawei said that it met its intellectual property revenue expectations for 2021, but did not provide a figure.

United States

US To Spend $1.5 Billion To Jumpstart Alternatives To Huawei (axios.com) 48

The federal government plans to invest $1.5 billion to help spur a standards-based alternative for the gear at the heart of modern cellular networks. From a report: Experts say -- and the government agrees -- that there are economic and national security risks in having such equipment made only by a handful of companies overseas, with the most affordable products coming from China's Huawei. The most likely effort to benefit from the new funding is known as ORAN (Open Radio Access Network), which uses standard computing gear to replace what has been proprietary hardware from companies like Nokia, Ericsson and Huawei. The federal government is kicking off the program with a public comment period, which will run through Jan. 23. Funding for the effort was provided by the Chips and Science Act. The U.S. has largely banned use of Huawei's devices over security concerns amid deepening U.S.-China tensions.
Technology

Huawei Teases a Smartwatch With Built-In Wireless Earbuds (theverge.com) 4

Huawei has confirmed the existence of a smartwatch it's working on featuring a pair of built-in wireless earbuds. "Huawei's account on Chinese Twitter-like site Weibo announced the existence of the device on Wednesday and promised all would be revealed on December 2," reports The Register. "But Huawei has since postponed its Winter 2022 consumer kit launch for unexplained reasons." You can view a teaser video on YouTube. The Verge adds: As the name suggests, the Huawei Watch Buds are a pair of earbuds concealed within a smartwatch that looks similar to the Huawei Watch 3. Details are a little sparse so there's no word yet on what kind of performance or battery life you can expect from either of the products, but the watch itself does appear to be running HarmonyOS.

The earbuds don't seem to resemble any previous Huawei products, sporting a bare-bones black and silver design. While the concept feels more than a little gimmicky, it could be a neat solution for runners and other sporty folks who don't want to carry a separate earbud case during a workout. (If they don't mind the extra bulk on their wrists.) [...] Addressing the elephant in the room, it's unlikely that you'll be able to buy this wacky gadget in the US anyway, regardless of its legitimacy. Huawei products have been effectively banned in the country since the company was placed on the Commerce Department's Bureau of Industry and Security Entity list in 2019.

EU

'How Washington Chased Huawei Out of Europe' (politico.eu) 102

Huawei "is giving up on Europe," writes Politico, saying the Chinese telecommunications company is "retrenching its European operations and putting its ambitions for global leadership on ice."

"The reasons for doing this have little to do with the company's commercial potential — Huawei is still able to offer cutting-edge technology at lower costs than its competitors — and everything to do with politics, according to interviews with more than 20 current and former staff and strategic advisers to the company." Pressed by the United States and increasingly shunned on a Continent it once considered its most strategic overseas market, Huawei is pivoting back toward the Chinese market, focusing its remaining European attention on the few countries — Germany and Spain, but also Hungary — still willing to play host to a company widely viewed in the West as a security risk.

"It's no longer a company floating on globalization," said one Huawei official. "It's a company saving its ass on the domestic market...."

Huawei's predicament was summed up by the company's founder Ren Zhengfei in a speech to executives at the company's Shenzhen headquarters in July. He laid out the trifecta of challenges the company has faced over the last three years: hostility from Washington; disruptions from the coronavirus pandemic; and Russia's invasion of Ukraine, which upended global supply chains and heightened European concerns about over-dependence on countries like China. "The environment we faced in 2019 was different from the one we face today," Ren said in his speech, which wasn't made public but was seen by POLITICO. "Don't assume that we will have a brighter future."

"We previously had an ideal for globalization striving to serve all humanity," he added. "What is our ideal today? Survival....!"

The company is also retrenching elsewhere, according to Ren. "We will give up markets in some countries," the firm's founder said in his speech this summer. "For example, we will give up markets in the Five Eyes countries and India." The "Five Eyes" refers to an intelligence-sharing arrangement between the U.S., U.K., Canada, Australia and New Zealand. All five countries have banned or are in the process of banning Huawei and other Chinese companies from their critical infrastructure because of security concerns.

Thanks to Slashdot reader fbobraga for submitting the article.
China

The US Bans Huawei, ZTE Telecommunications Equipment Sales Over Chinese Spying Fears (cnn.com) 74

The U.S. government "has banned approvals of new telecommunications equipment from China's Huawei Technologies and ZTE," reports CNN, "because they pose 'an unacceptable risk' to US national security." The U.S. Federal Communications Commission said on Friday it had adopted the final rules, which also bar the sale or import of equipment made by China's surveillance equipment maker Dahua Technology, video surveillance firm Hangzhou Hikvision Digital Technology and telecoms firm Hytera Communications.

The move represents Washington's latest crackdown on the Chinese tech giants amid fears that Beijing could use Chinese tech companies to spy on Americans.

"These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications," FCC Chairwoman Jessica Rosenworcel said in a statement.

Programming

Wired Hails Rust as 'the Viral Secure Programming Language That's Taking Over Tech' (wired.com) 126

A new article from Wired calls Rust "the 'viral' secure programming language that's taking over tech."

"Rust makes it impossible to introduce some of the most common security vulnerabilities. And its adoption can't come soon enough...." [A] growing movement to write software in a language called Rust is gaining momentum because the code is goof-proof in an important way. By design, developers can't accidentally create the most common types of exploitable security vulnerabilities when they're coding in Rust, a distinction that could make a huge difference in the daily patch parade and ultimately the world's baseline cybersecurity....

[B]ecause Rust produces more secure code [than C] and, crucially, doesn't worsen performance to do it, the language has been steadily gaining adherents and now is at a turning point. Microsoft, Google, and Amazon Web Services have all been utilizing Rust since 2019, and the three companies formed the nonprofit Rust Foundation with Mozilla and Huawei in 2020 to sustain and grow the language. And after a couple of years of intensive work, the Linux kernel took its first steps last month to implement Rust support. "It's going viral as a language," says Dave Kleidermacher, vice president of engineering for Android security and privacy. "We've been investing in Rust on Android and across Google, and so many engineers are like, 'How do I start doing this? This is great'...."

By writing new software in Rust instead, even amateur programmers can be confident that they haven't introduced any memory-safety bugs into their code.... These types of vulnerabilities aren't just esoteric software bugs. Research and auditing have repeatedly found that they make up the majority of all software vulnerabilities. So while you can still make mistakes and create security flaws while programming in Rust, the opportunity to eliminate memory-safety vulnerabilities is significant....

"Yes, it's a lot of work, it will be a lot of work, but the tech industry has how many trillions of dollars, plus how many talented programmers? We have the resources," says Josh Aas, executive director of the Internet Security Research Group, which runs the memory-safety initiative Prossimo as well as the free certificate authority Let's Encrypt. "Problems that are merely a lot of work are great."

Here's how Dan Lorenc, CEO of the software supply-chain security company Chainguard, explains it to Wired. "Over the decades that people have been writing code in memory-unsafe languages, we've tried to improve and build better tooling and teach people how to not make these mistakes, but there are just limits to how much telling people to try harder can actually work.

"So you need a new technology that just makes that entire class of vulnerabilities impossible, and that's what Rust is finally bringing to the table."
Businesses

Seagate To Cut 3,000 Jobs, Faces Charge of Violating Sanctions (bloomberg.com) 34

Seagate, the biggest maker of computer hard drives, said it's eliminating about 3,000 jobs and that big buyers of technology are cutting orders on concerns the economy is worsening. From a report: "Global economic uncertainties and broad-based customer inventory corrections worsened in the latter stages of the September quarter, and these dynamics are reflected in both near-term industry demand and Seagate's financial performance," Chief Executive Officer Dave Mosley said in a statement. "We have taken quick and decisive actions to respond to current market conditions and enhance long-term profitability, including adjusting our production output and annual capital expenditure plans."

Separately, Seagate said it has been accused by the US Commerce Department of violating US export rules by selling hard drives to a sanctioned entity. Reuters reported that the entity was Huawei. The company denied it violated the rules. The US company's push back may prove a test of tightening restrictions against the provision of technology to China by the Biden administration, which has cited national security concerns in actions it's taken against companies such as Huawei. Most of the actions to date have focused on semiconductor technology.

China

Huawei Investigation Was Targeted by Chinese Spies, US Alleges (bloomberg.com) 27

The US unsealed charges claiming two Chinese intelligence officers tried to obstruct a criminal investigation of Huawei , and alleged others were working on behalf of a "foreign power" to try procure technology and recruit spies. Bloomberg reports: The charges were part of a series of recently unsealed cases the Justice Department announced Monday that officials said had disrupted criminal activity being conducted by the People's Republic of China. Ten of the 13 individuals charged were Chinese intelligence individuals, according to FBI Director Chris Wray. Deputy Attorney General Lisa Monaco added that the case involving alleged obstruction of a US probe of a telecommunications company -- which the DOJ wouldn't identify -- exposes the connection between the Chinese government and its companies. She said the telecom giant tried to "unlawfully gain an edge" to undermine the US investigation, and shows why Chinese companies shouldn't be trusted to handle the personal data of Americans.

In a complaint made public Monday, the US claims Guochun He and Zheng Wang worked on behalf of the Chinese government to target the US, from 2019 until the present, for the benefit of the company. A person familiar with the matter confirmed it is Huawei. The US claims He and Wang bribed a law enforcement employee to provide what they believed was confidential information about witnesses, evidence and possible additional charges to be filed against the technology giant. He paid the employee $61,000 in Bitcoin, according to the criminal complaint. In a separate action, four people were charged in federal court in New Jersey with conspiracy to act as an illegal agent of a foreign government. The conspiracy allegedly involved Chinese intelligence officers posing as academics to recruit US law enforcement workers and others in seeking help procuring fingerprint technology and equipment for the US. They also allegedly pressured one former official to stop protests in the US along the 2008 Olympic torch route, according to court filings.

In addition, the Justice Department announced that seven people from China were charged in an indictment unsealed in the Eastern District of New York last week with conspiring to harass a Chinese citizen living in the US in hopes of causing the person to return. The actions were allegedly part of an effort by China, called "Operation Fox Hunt," to force the repatriation of alleged fugitives living in other countries. In the case involving the Huawei probe, the complaint includes conversations between He and Wang and a US government employee working as a double agent under supervision of the Federal Bureau of Investigation. They were using an encrypted messaging program that is not identified.

Communications

FCC Poised To Ban All US Sales of New Huawei and ZTE Equipment (axios.com) 42

The Federal Communications Commission plans to ban all sales of new Huawei and ZTE telecommunications devices in the U.S. -- as well as some sales of video surveillance equipment from three other Chinese firms -- out of national security concerns, Axios reported Thursday, citing sources. From the report: The move, which marks the first time the FCC has banned electronics equipment on national security grounds, closes a vise on the two Chinese companies that began tightening during the Trump administration. The ban marks the culmination of years of warnings from security researchers, analysts and intelligence agencies that the Chinese government could use Chinese-made telecommunications equipment to spy on Americans.

The price could come in higher costs for some smaller telecommunications providers that favored the Chinese companies' products thanks to their aggressive pricing. On Oct. 5, FCC Chairwoman Jessica Rosenworcel circulated a draft order among her fellow commissioners. The order -- which still needs to be voted on -- would effectively ban new equipment sales in the U.S. from firms that pose a threat to national security, two sources with direct knowledge told Axios.

AI

US Said To Plan New Limits on China's AI and Supercomputing Firms (nytimes.com) 53

The Biden administration is expected to announce new measures to restrict Chinese companies from accessing technologies that enable high-performance computing, The New York Times reported Monday, citing several people familiar with the matter, the latest in a series of moves aimed at hobbling Beijing's ambitions to craft next-generation weapons and automate large-scale surveillance systems. From a report: The measures, which could be announced as soon as this week, would be some of the most significant steps taken by the Biden administration to cut off China's access to advanced semiconductor technology. They would build on a Trump-era rule that struck a blow to the Chinese telecom giant Huawei by prohibiting companies around the world from sending it products made with the use of American technology, machinery or software. A number of Chinese firms, government research labs and other entities are expected to face restrictions similar to Huawei, according to two people with knowledge of the plans. In effect, any firm that uses American-made technologies would be blocked from selling to the Chinese entities that are targeted by the administration. It's not yet clear which Chinese firms and labs would be impacted. The broad expansion of what is known as the foreign direct product rule is just one part of Washington's planned restrictions. The administration is also expected to try to control the sale of cutting-edge U.S.-made tools to China's domestic chip makers.
Space

Apple's Satellite-Based 'Emergency SOS' Prompts Speculation on Future Plans (cringely.com) 34

First, a rumor from the blog Phone Arena. "Not to be outdone by Apple and Huawei, Samsung is planning to incorporate satellite connectivity options in its Galaxy phones as well, hints leakster Ricciolo."

But it's not the first rumor we've heard about phone vendors and satellites. "Cringley Predicts Apple is About to Create a Satellite-Based IoT Business ," read the headline in June. Long-time tech pundit Robert X. Cringely predicted that Apple would first offer some limited satellite-based functionality,

But he'd also called those services "proxies for Apple entering — and then dominating — the Internet of Things (IoT) business. "After all, iPhones will give them 1.6 billion points of presence for AirTag detection even on sailboats in the middle of the ocean — or on the South Pole.... Ubiquity (being able to track anything in near real time anywhere on the planet) signals the maturity of IoT, turning it quickly into a $1 TRILLION business — in this case Apple's $1 TRILLION business." And beyond that, "in the longer run Cupertino plans to dis-intermediate the mobile carriers — becoming themselves a satellite-based global phone and data company [and] they will also compete with satellite Internet providers like Starlink, OneWeb, and Amazon's Kuiper."

So how did Cringely react last week when Apple announced "Emergency SOS" messaging for the iPhone 14 and 14 Plus — via communication satellites — when their users are out of range of a cell signals? He began by wondering if Apple was intentionally downplaying the satellite features: They limited their usage case to emergency SOS texts in the USA and Canada, sorta said it would be just for iPhone 14s, and be free for only the first two years. They showed a satellite app and very deliberately tried to make it look difficult to use. They gave no technical details and there was no talk of industry partners.

Yet there were hints of what's to come. We (you and I, based on my previous column) already knew, for example, that ANY iPhone can be made to work with Globalstar. We also knew the deal was with Globalstar, which Apple never mentioned but Globalstar confirmed, more or less, later in the day in an SEC filing. But Apple DID mention Find My and Air Tags, notably saying they'd work through the satellites even without having to first beseech the sky with an app. So the app is less than it seems and Apple's satellite network will quickly find its use for the Internet of Things [Cringely predicts]....

Apple very specifically said nothing about the global reach of Find My and Air Tags. There is no reason why those services can't have immediate global satellite support, given that the notification system is entirely within Apple's ecosystem and is not dependent on 911-type public safety agreements.

Maybe it will take a couple years to cover the world with SOS, but not for Find My, which means not for IoT — a business headed fast toward $1 trillion and will therefore [hypothetically] have a near-immediate impact on Apple's bottom line.

Speculating further, Cringely predicts that Globalstar — which has ended up with vast tracts of licensed spectrum — will eventually be purchased by a larger company. ("If not Apple, maybe Elon Musk.")

And this leads Cringely to yet another prediction. "If Elon can't get Globalstar, he and his partners will push for the regulatory expansion into space of terrestrial 5G licenses, which will probably be successful." This will happen, frankly, whether SpaceX and T-Mobile are successful or not, because AST&Science and its investors AT&T, Verizon and Zodafone need 5G in space, too, to compete with Apple. So there WILL eventually be satellite competition for Apple and I think the International Telecommunication Union will eventually succumb to industry pressure.
And by the end Cringely is also speculating about just how Apple will come up with innovative new satellite designs on a faster schedule...
China

Chinese-Made Huawei Equipment Could Disrupt US Nuclear Arsenal Communications, FBI Determines (cnn.com) 84

There's been "a dramatic escalation of Chinese espionage on US soil over the past decade," sources in the U.S. counterintelligence community have told CNN this weekend.

But some dramatic new examples have been revealed. For example, in 2017 China's government offered to build a $100 million pavilion in Washington D.C. with an ornate 70-foot pagoda. U.S. counterintelligence officials realized its location — two miles from the U.S. Capitol — appeared "strategically placed on one of the highest points in Washington DC...a perfect spot for signals intelligence collection." Also alarming was that Chinese officials wanted to build the pagoda with materials shipped to the US in diplomatic pouches, which US Customs officials are barred from examining, the sources said. Federal officials quietly killed the project before construction was underway...

Since at least 2017, federal officials have investigated Chinese land purchases near critical infrastructure, shut down a high-profile regional consulate believed by the US government to be a hotbed of Chinese spies and stonewalled what they saw as clear efforts to plant listening devices near sensitive military and government facilities.

Among the most alarming things the FBI uncovered pertains to Chinese-made Huawei equipment atop cell towers near US military bases in the rural Midwest. According to multiple sources familiar with the matter, the FBI determined the equipment was capable of capturing and disrupting highly restricted Defense Department communications, including those used by US Strategic Command, which oversees the country's nuclear weapons.... It's unclear if the intelligence community determined whether any data was actually intercepted and sent back to Beijing from these towers. Sources familiar with the issue say that from a technical standpoint, it's incredibly difficult to prove a given package of data was stolen and sent overseas.

The Chinese government strongly denies any efforts to spy on the US.... But multiple sources familiar with the investigation tell CNN that there's no question the Huawei equipment has the ability to intercept not only commercial cell traffic but also the highly restricted airwaves used by the military and disrupt critical US Strategic Command communications, giving the Chinese government a potential window into America's nuclear arsenal.... As Huawei equipment began to proliferate near US military bases, federal investigators started taking notice, sources familiar with the matter told CNN. Of particular concern was that Huawei was routinely selling cheap equipment to rural providers in cases that appeared to be unprofitable for Huawei — but which placed its equipment near military assets.

China

China's Top Chipmaker Achieves Breakthrough Despite US Curbs (bloomberg.com) 76

Semiconductor Manufacturing International Corp has likely advanced its production technology by two generations, defying US sanctions intended to halt the rise of China's largest chipmaker. From a report: The Shanghai-based manufacturer is shipping Bitcoin-mining semiconductors built using 7-nanometer technology, industry watcher TechInsights wrote in a blog post on Tuesday. That's well ahead of SMIC's established 14nm technology, a measure of fabrication complexity in which narrower transistor widths help produce faster and more efficient chips. Since late 2020, the US has barred the unlicensed sale to the Chinese firm of equipment that can be used to fabricate semiconductors of 10nm and beyond, infuriating Beijing.

A person familiar with the developments confirmed the report, asking not to be named as they were not authorized to discuss it publicly. SMIC's surprising progress raises questions about how effective export controls have been and whether Washington can indeed thwart China's ambition to foster a world-class chip industry at home and reduce reliance on foreign technologies. It also comes at a time American lawmakers have urged Washington to close loopholes in its Chinese-oriented curbs and ensure Beijing isn't supplying crucial technology to Russia. The restrictions effectively derailed Huawei Technologies's smartphone business by cutting it off from the tools to compete at the cutting edge -- but that company is now quietly staffing up a renewed effort to develop its in-house chipmaking acumen.

United States

US Probes China's Huawei Over Equipment Near Missile Silos (reuters.com) 39

The Biden administration is investigating Chinese telecoms equipment maker Huawei over concerns that U.S. cell towers fitted with its gear could capture sensitive information from military bases and missile silos that the company could then transmit to China, Reuters reported Thursday, citing people familiar with the matter. From the report: Authorities are concerned Huawei could obtain sensitive data on military drills and the readiness status of bases and personnel via the equipment, one of the people said, requesting anonymity because the investigation is confidential and involves national security. The previously unreported probe was opened by the Commerce Department shortly after Joe Biden took office early last year, the sources said, following the implementation of rules to flesh out a May 2019 executive order that gave the agency the investigative authority.
The Military

DARPA Is Worried About How Well Open-Source Code Can Be Trusted (technologyreview.com) 85

An anonymous reader quotes a report from MIT Technology Review: "People are realizing now: wait a minute, literally everything we do is underpinned by Linux," says Dave Aitel, a cybersecurity researcher and former NSA computer security scientist. "This is a core technology to our society. Not understanding kernel security means we can't secure critical infrastructure." Now DARPA, the US military's research arm, wants to understand the collision of code and community that makes these open-source projects work, in order to better understand the risks they face. The goal is to be able to effectively recognize malicious actors and prevent them from disrupting or corrupting crucially important open-source code before it's too late. DARPA's "SocialCyber" program is an 18-month-long, multimillion-dollar project that will combine sociology with recent technological advances in artificial intelligence to map, understand, and protect these massive open-source communities and the code they create. It's different from most previous research because it combines automated analysis of both the code and the social dimensions of open-source software.

Here's how the SocialCyber program works. DARPA has contracted with multiple teams of what it calls "performers," including small, boutique cybersecurity research shops with deep technical chops. One such performer is New York -- based Margin Research, which has put together a team of well-respected researchers for the task. Margin Research is focused on the Linux kernel in part because it's so big and critical that succeeding here, at this scale, means you can make it anywhere else. The plan is to analyze both the code and the community in order to visualize and finally understand the whole ecosystem.

Margin's work maps out who is working on what specific parts of open-source projects. For example, Huawei is currently the biggest contributor to the Linux kernel. Another contributor works for Positive Technologies, a Russian cybersecurity firm that -- like Huawei -- has been sanctioned by the US government, says Aitel. Margin has also mapped code written by NSA employees, many of whom participate in different open-source projects. "This subject kills me," says d'Antoine of the quest to better understand the open-source movement, "because, honestly, even the most simple things seem so novel to so many important people. The government is only just realizing that our critical infrastructure is running code that could be literally being written by sanctioned entities. Right now." This kind of research also aims to find underinvestment -- that is critical software run entirely by one or two volunteers. It's more common than you might think -- so common that one common way software projects currently measure risk is the "bus factor": Does this whole project fall apart if just one person gets hit by a bus?
SocialCyber will also tackle other open-source projects too, such as Python which is "used in a huge number of artificial-intelligence and machine-learning projects," notes the report. "The hope is that greater understanding will make it easier to prevent a future disaster, whether it's caused by malicious activity or not."
EU

EU Antitrust Regulators Probing Tech Group AOM's Video Licensing Policy (reuters.com) 15

EU antitrust regulators are investigating the video licensing policy of the Alliance for Open Media (AOM), whose members include Alphabet Google, Amazon, Apple and Meta , the European Commission said on Thursday. Reuters reports: Founded in 2015, the group aims to create a new standard software for streaming higher-quality 4K video on browsers, devices, apps, and gaming, known as AV1. While the AV1 software is not yet adopted widely, Netflix and YouTube have started using it for some customers, and browsers such as Google Chrome and Firefox have started to support the new format. Intel, Huawei, Mozilla, Samsung and Nvidia are also AOM members, according to its website.

In a questionnaire sent to some companies earlier this year and seen by Reuters, the EU watchdog said it was investigating alleged anti-competitive behavior related to the license terms of AV1 by AOM and its members in Europe. "The Commission has information that AOM and its members may be imposing licensing terms (mandatory royalty-free cross licensing) on innovators that were not a part of AOM at the time of the creation of the AV1 technical, but whose patents are deemed essential to (its) technical specifications," the paper said. It said this action may be restricting the innovators' ability to compete with the AV1 technical specification, and also eliminate incentives for them to innovate.

The questionnaire also asked about the impact of an AOM patent license clause in which licensees would have their patent licenses terminated immediately if they launched patent lawsuits asserting that implementation infringes their claims. Companies risk fines of up to 10% of their global turnover for breaching EU antitrust rules.

China

US Sanctions Help China Supercharge Its Chipmaking Industry (bloomberg.com) 45

China's chip industry is growing faster than anywhere else in the world, after US sanctions on local champions from Huawei to Hikvision spurred appetite for home-grown components. From a report: Nineteen of the world's 20 fastest-growing chip industry firms over the past four quarters, on average, hail from the world's No. 2 economy, according to data compiled by Bloomberg. That compared with just 8 at the same point last year. Those China-based suppliers of design software, processors and gear vital to chipmaking are expanding revenue at several times the likes of global leaders Taiwan Semiconductor Manufacturing Co. or ASML Holding NV.

That supercharged growth underscores how tensions between Washington and Beijing are transforming the global $550 billion semiconductor industry -- a sector that plays an outsized role in everything from defense to the advent of future technologies like AI and autonomous cars. In 2020, the US began restricting sales of American technology to companies like Semiconductor Manufacturing International Corp. and Hangzhou Hikvision Digital Technology, successfully containing their growth -- but also fueling a boom in Chinese chip-making and supply.

The Internet

China Rebrands Proposal on Internet Governance, Targeting Developing Countries (euractiv.com) 41

The Chinese government made another attempt in promoting its vision of the internet, in a repackaging intended to lure lagging regions. From a report: Throughout the years, China has made several attempts at changing the current internet architecture, mostly in the context of the International Telecommunication Union (ITU), the United Nation's agency for ICT technologies. Contrarily to other standardisation organisations that are dominated by private companies, in ITU governments play a leading role. Thus, Beijing has been using this forum to attract countries that might have similar interests in asserting stronger governmental control over the internet. In September 2019, the delegate of Chinese telecom juggernaut Huawei presented a proposal for a new IP (Internet Protocol). In February, EURACTIV anticipated that more proposals were expected in the context of the World Telecommunication Standardisation Assembly.

Beijing's new proposal took the form of a modification of a resolution set to be adopted at the World Telecommunication Development Conference, the ITU's conference dedicated to telecom development that takes place in Rwanda from 6 to 16 June. Two weeks ago, the Chinese government circulated a modification of a resolution that in a footnote introduced the concept of IPv6+, presented as an enhanced version of the latest version of the internet protocol, known as IPv6. At around the same time, IPv6+ was promoted by Huawei. "IPv6+ can realize more open and active technology and service innovation, more efficient and flexible networking and service provision, more excellent performance and user experience," the footnote reads. According to the document, seen by EURACTIV, IPv6+ would have three crucial advantages. A more efficient allocation of information across the network; integration of other technologies that allow for an organisation of network resources; integration of innovative solutions.

Canada

Canada Bans Huawei Equipment From 5G Networks, Orders Removal By 2024 (theverge.com) 31

Canada has banned the use of Huawei and fellow Chinese tech giant ZTE's equipment in its 5G networks, its government has announced. From a report: In a statement, it cited national security concerns for the move, saying that the suppliers could be forced to comply with "extrajudicial directions from foreign governments" in ways that could "conflict with Canadian laws or would be detrimental to Canadian interests." Telcos will be prevented from procuring new 4G or 5G equipment from the companies by September this year, and must remove all ZTE- and Huawei-branded 5G equipment from their networks by June 28th, 2024. Equipment must also be removed from 4G networks by the end of 2027. "The Government is committed to maximizing the social and economic benefits of 5G and access to telecommunications services writ large, but not at the expense of security," the Canadian government wrote in its statement.

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