Huawei's AT&T United States smartphone deal collapses

Alonzo Simpson
January 13, 2018

The letter notes the committee's concerns "about Chinese espionage in general, and Huawei's role in that espionage in particular". However, it is not a popular brand in the US, and there are a few hurdles before it'll succeed here, at least if AT&T are concerned. A copy of the letter was seen by Reuters.

A Huawei spokesman declined to comment. She added that she would be participating in the company's event to launch the Mate 10 Pro in the United States in February.

"We are compliant with the world's most stringent privacy protection frameworks and requirements and have gained the trust of over 150 million customers in the past year alone", Plummer said in an email.

Huawei presently is the third-largest smartphone manufacturer in the world and the world's largest telecom equipment manufacturer while ZTE is the fifth largest n the world.

Washington began to have concerns about Chinese investment in the United States before President Donald Trump took office previous year, and those concerns have heightened. He said that the spying threat is "now reemerging as the Chinese government is reattempting to embed themselves into USA technology".

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In 2012, a United States congressional committee said Chinese Huawei and ZTE would be banned from mergers and acquisitions in the USA because the two companies pose a threat to U.S. security. But the longest lasting flagship isn't one of them as the title belongs to the Huawei Mate 10 Pro.

In the United States, where telecom carriers dominate the distribution channel by typically providing subsidies and special package deals, Huawei had been unable to make any significant inroads due to national security concerns. It was launched in Europe in October with a price tag of 799 euros ($955).

The dispute stems from earlier filings by the company in 2016, in both China and the USA, that deal with 20 patents pertaining to wireless communication, operating systems and UI elements.

Conaway's bill cites all the money quotes from past government reports, including the 2011 Congressional investigation that led to the 2012 bill, a U.S. China Commission that found ZTE, Huawei and others are "directly subject to direction by the Chinese Communist Party", and comments from former Central Intelligence Agency head General Michael Hayden who claimed Huawei had '"shared with the Chinese state intimate and extensive knowledge of foreign telecommunications systems it is involved with".

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