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A24 TECHNOLOGY
Friday 29 November 2019
U.S. proposes rules to vet all telecoms-related purchases

By ELAINE KURTENBACH which had never before
AP Business Writer been applied to an entire
BEIJING (AP) — The Depart- commercial sector. It usu-
ment of Commerce has ally is used to freeze assets
proposed requiring case- of designated terrorists and
by-case approvals of all drug traffickers and impose
purchases of telecommu- embargoes on hostile for-
nications equipment in a eign governments.
move likely to hit major Chi- Huawei, the world's big-
nese suppliers like Huawei. gest supplier of network
The plan issued Tuesday gear, has been deemed
follows President Donald a danger in U.S. national
Trump's order in May de- security circles for the bet-
claring a national emer- ter part of a decade. The
gency and restricting pur- company denies such al-
chases by U.S. companies legations and insists that it
of telecoms equipment would abide by promises to
that might be considered a protect its customers' data
security threat. It calls for a and services.
period of public comment U.S. justice and intelligence
before it is implemented. officials have presented
That order did not name no evidence of any Hua-
specific countries or com- wei equipment in the U.S.
panies but was thought to In this Tuesday, Oct. 29, 2019, photo, visitors look at the surveillance cameras and services pro- or elsewhere being com-
target Chinese suppliers vided by China's telecoms equipment giant Huawei on display at the China Public Security Expo promised by backdoors in-
such as Huawei Technolo- in Shenzhen, China's Guangdong province. stalled by the manufactur-
gies and ZTE Corp. It gave Associated Press er to facilitate espionage
the Commerce Depart- by Beijing. Huawei vehe-
ment 150 days to come up United States; an undue risk would use a "case-by-case, Google maps and other mently denies involvement
with the regulations issued of catastrophic effects on fact specific approach" services, making it hard to in Chinese spying.
this week. the security and resiliency and refer to assessments by compete. But all major U.S. wireless
The May 15 order by Trump of critical infrastructure or the Secretary of Homeland The Trump administration carriers and internet pro-
said foreign "adversaries" the digital economy... or Security and Director of Na- on Nov. 19 extended for 90 viders swore off Chinese-
were exploiting informa- an unacceptable risk to tional Intelligence. days a limited reprieve on made equipment after a
tion and communications national security or to the The Chinese Commerce such technology sales, the 2012 report by the House
technology and services, security or safety of U.S. Ministry did not immedi- second such extension. Intelligence Committee
or ICTS, for espionage and persons." ately reply to a request for Despite sanctions, numer- said Huawei and ZTE, Chi-
other cybercrimes. It gave Commerce Secretary Wil- comment. ous loopholes have been na's No. 2 telecoms equip-
the commerce secretary bur Ross said in a statement The U.S. government black- exploited. U.S. companies, ment company, should
the authority to prohibit or that the proposed rules listed Huawei in May, requir- for example, continue to be excluded as enablers
"mitigate" any purchases "demonstrate our commit- ing U.S. companies to ob- supply Huawei with chips of Beijing-directed espio-
of telecommunications ment to securing the digital tain government approvals made outside the United nage.
equipment and services economy, while also deliv- for sales to the company. States. Trump signed a bill in 2018
made after that date, "if ering on President Trump's That would disrupt Huawei's The May executive order barring the U.S. govern-
such transactions pose: an commitment to our digital access to processor chips was based on the 1977 ment and its contractors
undue risk of sabotage or infrastructure." and other technology. Its International Emergency from using equipment from
subversion of ICTS in the Decisions on transactions smartphones would lose Economic Powers Act, the Chinese suppliers.q

Panasonic leaves semiconductor

business with Taiwan sale

ated by Panasonic Semi- said the recent U.S.-Chi- Panasonic said in a state-
conductor Solutions Co. na trade war, which has ment.
to Nuvoton Technology slowed sales in China, The company said it be-
Corp. added to those pressures. lieved Nuvoton appreci-
In recent years, Panasonic The move highlights Pana- ates the strengths of Pana-
has sold its semiconductor sonic and other Japanese sonic's technology and will
plants in Singapore, Indo- electronics makers' efforts steer the business to stable
nesia and Malaysia. to focus on more lucrative growth.

In this Jan. 9, 2018, file photo, people walk by the Panasonic Terms were not disclosed businesses. Panasonic has also trans-
booth during CES International in Las Vegas. for Thursday's move, set to "The competitive environ- ferred another part of its
Associated Press be completed next year. ment surrounding the semi- semiconductor business to
Panasonic's chipmaking conductor business has Japanese rival Rohm Co.,
By YURI KAGEYAMA business with the sale of its has been struggling in re- become extremely severe scheduled to be complet-
AP Business Writer last business in that sector cent years amid competi- due to aggressive expan- ed this year.
TOKYO (AP) — Japanese to a Taiwanese company. tion from cheaper rivals in sion of competitors, huge Some Japanese compa-
electronics manufacturer Panasonic said Thursday it South Korea and the rest of investments in the focused nies remain in the business,
Panasonic Corp. is aban- was transferring the semi- Asia. area and industry reorga- including Toshiba Corp.,
doning the semiconductor conductor business oper- Japanese media reports nization," Fujitsu and Sony Corp.q