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Why is the U.S. Government concerned about them?

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The U.S. government is increasingly aware of the impacts of terrorism, corruption, environmental degradation, and other transnational threats on national security and global stability. In response to these challenges, the U.S. government has focused a great deal of energy and attention on addressing them through coordinated initiatives at home and abroad. This includes efforts to strengthen domestic laws and regulations, enhance cooperation with partners across the world to combat crime, provide humanitarian assistance in emergencies, support education initiatives in developing countries, engage foreign governments on important issues such as climate change or religious freedom, facilitate access to markets for goods produced by businesses abroad in direct competition with American companies here at home or overseas facilities owned by the U.S government itself.

While some of these issues may seem unrelated to one another in isolation or limited scope when examined through a broad lens they can have profound implications for our collective safety and security domestically and internationally. The Department of Defense has recently included several articles addressing these types issues within their strategy documents as a priority impacted by global trends as well as worries over growing nationalism around the world that can be spun into acts of terror to further agendas across multiple sectors including politically motivated activities like trade wars or actions meant to undermine landscapes like healthcare or education around the world by hostile foreign actors primarily driven towards economic gains from unrest within nations.

As our nation continues to work hand-in-hand with allies around the world on tackling these challenges we must continue engaging allied governments in policy dialogue reinforcing our commitment towards universal human rights standards providing aid meant specifically for those most impacted ameliorating real life humanitarian costs through everything from disaster relief efforts upskilling programs to increasing access to technology that has been blocked or restricted under imposed sanctions imposed by authoritarian regimes all while understanding very clearly how this will affect American citizens and interests alike domestically overseas still even during times of uncertainty peace provides hope resilience possible especially when reestablishing hope things are possible with continued outreach concerted effort open dialogue lasting peace may still be just within reach.

Overview of Huawei and ZTE

Huawei and ZTE are the world’s largest telecommunications companies, both hailing from China. However, in recent weeks, their business operations have been questioned due to US government concerns. US President Joe Biden recently signed legislation to tighten US restrictions on these two companies.

In this article, we will look at the background of these two companies and why the US government is concerned about them.

History of Huawei and ZTE

Huawei Technologies Co. Ltd and ZTE Corporation are two major Chinese telecom companies, both leaders in the global communication equipment and devices market. Founded in 1987, Huawei is now the world’s largest communications company; ZTE was founded one year later in 1988.

Huawei is a respected leader in the industry, and is consistently ranked as one of the most valuable companies in China for its state-of-the-art technology and innovation. It produces broadband network equipment and telecommunications terminal products such as routers, switches, servers, and handsets. In 2017 alone it made more than $92 billion in revenue.

ZTE is a 5G technology development leader, focusing on telecom infrastructure solutions. Its main products include mobile phones, tablets, router products, base stations and optical transmission systems. According to recent reports from independent market research firm IHS Markit Ltd., ZTE was second to Huawei with 17 percent of the global smartphone shipment share by volume at the end of 2016.

Both companies’ involvement with telecommunications has led to scrutiny from U.S. officials due to concerns that their activities may be linked to cyber espionage or other illegal activity conducted on behalf of the Chinese government. Particularly concerning is that Huawei has been accused of creating backdoors into phone systems worldwide so that Chinese intelligence agencies can access private data harvested from outside sources through these networks. This concern has led many governments worldwide to either restrict or completely ban these technologies within their territories for this reason. For instance Australia’s 5G network infrastructure plan excludes both Huawei and ZTE which could potentially result in hundreds of millions of dollars worth of losses for both Chinese companies should they fail to succeed against their competitors who were allowed entry into Australia’s network infrastructure plans due bilateral security concerns raised by U.S government officials.

Recent U.S. Government Actions

In recent years, the U.S. government has taken several steps to limit the activity of Chinese telecommunications companies Huawei and ZTE. This is due to concerns that they have close ties to the Chinese government, allowing them access to sensitive data or technology which could be used for espionage or other activities that go against U.S. interests.

The U.S. Department of Defense has prohibited its stores from selling electronic devices made by either company due to security concerns;. Although, in contrast, these companies have denied the government’s claims, the Trump Administration has sought to block the companies’ access to U.S.-made components, threatening them with exclusion from American markets if they do not comply with its regulations about product sharing with China and other countries deemed threats by Washington D.C.. In 2018, Huawei was placed on a list of entities which are prohibited from buying certain items from American suppliers as part of a ban on Chinese tech exports to Iran and North Korea; in 2019, President Donald Trump issued an executive order placing Huawei on a Trade Entity List banning it from all commerce with United States firms without special authorization from his administration; it was only in November 2020 that some businesses were granted business licences for sanctioned technology exports with restrictions placed on their shipments. Additionally, federal agencies have been barred from using any services either company provides. At the same time, key allies like Australia and Japan have also moved toward banning Huawei 5G equipment in their networks citing security fears and pressure exerted by Washington D.C..

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These measures have caused economic difficulty for both companies, who continue to protest what they deem an unjustified targeting of their operations by the American government and its allies around the world based solely on unfounded security fears and national security threats originating from China rather than real evidence proving any wrong-doing or policy issues related specifically to either company’s business practices or matters involving more general trade relations between two countries such states China and United States of America respectively.

The collisions between these governments is likely only going intensify over time as various nations attempt to increase their control over information flows within cyberspace as well as technological development taking place in different regions across this ever digitising world we live in now during this new millennium phase particularly intensifying during this current year 2021 due ongoing pandemic -coronavirus crisis happening all around us commonly referred COVID-19 now too today.

Security Concerns

In recent times, the U.S government has expressed concerns over the security implications of having companies like Huawei and ZTE in the U.S. market. As a result, president Joe Biden recently signed legislation that puts new restrictions on these companies, citing security and privacy concerns.

In this article, we’ll take a closer look at why the U.S. government is so concerned about Huawei and ZTE, and how the new legislation addresses these concerns.

Potential for Cyber Espionage

Cyber espionage is the use of computer networks to gain access to confidential or sensitive data, and is a major concern of the US Government. As technology continues to evolve and evolve rapidly, the ability to collect, exploit, analyse and use digital intelligence has become increasingly viable. Cyber espionage can occur in various forms such as malware infection campaigns, attacks targeted at network infrastructure, phishing scams and back-doors installed on target systems.

Cyber espionage threatens government operations by enabling malicious actors to gain sensitive information. Moreover, aggressive cyber tactics such as spear phishing campaigns can create havoc for an organisation by introducing compromised systems that are beyond the scope of traditional security measures. Additionally, state-sponsored abilities combined with congruent geopolitical objectives can result in more serious damage that could disrupt global order if left unchecked.

The U.S Government is particularly concerned about cyber espionage due to the nature of their operations and for issues related to national security and defence interests. With vast amounts of classified data stored within networks owned by governmental entities comes potential significant damages in case of compromise. In addition, any unauthorised disclosure or loss of confidential information including communications resulting from a successful attack could have dire consequences domestically and abroad!

Potential for Data Theft

Data theft is the unauthorised interception, use or retrieval of sensitive information or corporate data, and the threat of data theft is a growing concern among companies of all sizes that store customer and employee records. Data thieves often obtain information through malicious software, hacking, phishing and other malicious activities.

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Data stored on computers, laptops and mobile devices can be vulnerable to cybercriminals who target organisations with weak or non-existent security measures. It’s even easier for criminals to gain access to an unsecured computer or network – they have to find a vulnerable entry point that a device leaves exposed. Additionally, stolen data can lead to identity theft when personal financial details are leaked online or sold on the dark web.

Businesses need to take steps to protect their digital assets from cybercrime. For example, companies should create a plan for monitoring potential security threats and regularly update security software programs used on their systems. Employees should also be trained in basic cyber safety measures such as not clicking suspicious links in emails, using strong passwords and enabling two-factor authentication for any services that require logins/passwords. In addition, implementing encryption technologies and ensuring that any public networks are secure can help reduce the risk of falling victim to data theft.

Biden signs legislation to tighten U.S. restrictions on Huawei, ZTE

President Biden recently signed legislation to tighten the U.S. restrictions on the Chinese telecom companies Huawei and ZTE.This legislation may have significant implications for U.S. businesses, and the U.S. government is concerned about these implications.

Let’s take a closer look at the potential impacts of this legislation on the U.S. business landscape.

Potential Loss of Market Share

One of the main concerns for the U.S. government when it comes to U.S. businesses is potential loss of market share due to foreign competition. The global economy is growing increasingly more competitive, and U.S. businesses can find themselves in a position where they are getting pushed out of markets that have been traditionally their strongholds by foreign firms that are often better able to meet their customers’ needs at a lower cost and with increased speed, flexibility, and innovation.

This can be especially true in the current environment where technology has enabled companies worldwide to compete for customers at any location within just minutes or hours instead of days or weeks like in past eras. A shrinking customer base combined with increased pressure from low-cost providers means that many U.S.-based firms may no longer be able to sustain competitive advantages they have enjoyed in the past, potentially resulting in job losses and reduced economic opportunities within the United States over time if left unchecked by government policy solutions and strategies such as trade agreements, tariff reform, economic incentives and competitive tax reform measures focused on enhancing local competitiveness among other possible solutions depending on the context better positioning American firms in both domestic and global markets over those based overseas through strategic investments associated with dedicated resources towards research & development, investment and domestic workforce training efforts among others all while balancing these objectives with making sure existing domestic industry assets and consumer demand remain respected as well leading to more opportunities between American firms across a wider range of business sectors outside their traditional comfort zones all playing into helping generate long-term growth potentials for both individuals within them as well as entire communities throughout America alike.

Potential Loss of Intellectual Property

Intellectual property (IP) is an integral part of the U.S. economy and its competitiveness in the global market. It has considerable economic value and contributes significantly to U.S. business competitiveness by protecting a firm’s inventions, creative works, and brand similarities that give their products value in the marketplace.

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The threat to U.S. businesses posed by IP theft has gained greater attention recently, with recent estimates suggesting that IP theft costs U.S. businesses up to $600 billion per year – roughly equal to the total annual output of the state of Texas!

The danger IP theft presents to U.S businesses is twofold: on one hand, it reduces a company’s ability to profit from the development of innovative products; on the other hand, it creates a situation where entities outside of the United States can gain access to proprietary information and use it for their benefit without compensating or crediting its originator – ultimately leading not only to losses in profits for American companies but also stifling technological advancement due to lack of funding for further research into groundbreaking technologies where rivals may have already stolen key details about a development before an applicant can even get approval from relevant patent offices or other protection bodies like copyright infringement laws can be enforced.

The U.S Government is particularly concerned about IP theft because not only does it harm domestic corporations, but they also worry that economic espionage perpetrated by foreign governments may be aimed at obtaining not just important commercial information but also national security information related fields such as military defence technologies – all compromising America’s international standing and further damages its ability conduct its eminent foreign affairs amidst current global politics and dynamics currently seen among states today which includes both allies and antagonists alike vis-a-vis geopolitical landscapes around the world.

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