Taliban ties: Bangalore firm under microscope

SIFY ^

[milestogo]

Taliban ties: B'lore firm under microscope

Bangalore, Dec 10

The Karnataka government has despatched a team of officials to a Chinese IT facility here to investigate reports that it had developed equipment for the Taliban in Afghanistan, an official said Monday. "We have sent officials of the Software Technology Parks of India to investigate the report," said Vivek Kulkarni, Karnataka's secretary of Information Technology.

"The team will submit an official report later Monday to the Ministry of Information Technology," Kulkarni said. The Software Technology Parks of India is an autonomous body under the IT ministry.

The Hindustan Times daily reported Monday that the Cabinet Committee on Security, headed by Home Minister L K Advani, may deport 185 engineers of Bangalore-based Chinese firm Huawei Technologies Ltd. for allegedly helping the Taliban to upgrade their telecommunication network.

"The government has also got credible information that the company helped Iraq improve its military communication systems," the daily quoted top official sources as saying.

The daily said the committee was expected to discuss the matter with Prime Minister Atal Behari Vajpayee when he returns from Japan.

Huawei Technologies set up its Bangalore research and development centre, the largest software development center outside China, in February this year. The facility is currently doing research in telecommunications and networking solutions, especially third generation (3G) systems. Huawei has so far invested eight million dollars in the center and employs 280 software engineers.

The Economic Times said Huawei had brought in 185 telecom engineers from China in September on six-month visas to ensure total secrecy in the project. "The company was completing the project under contract, which now turns out was from the Taliban," it said.

The national daily said not only could India deport the IT professionals, it may further tighten foreign direct investment (FDI) norms from neighbouring countries. "Already, investment proposals from unknown Chinese and Sri Lankan companies are being rejected on the external affairs ministry's recommendations," the daily said.

[rit]

About Huawei Founded in 1988, Huawei Technologies Co., Ltd. is a high-tech enterprise dedicated to the research, development, manufacturing and marketing of telecom equipment and one of the largest network solutions providers in Asia. The products designed and manufactured by Huawei cover such main communications areas as: switching, SDH/DWDM transmission, optical access network, mobile and wireless communications, ATM, data communications, intelligent network, support network (STP, BITS), intelligent power supply, power equipment and environment monitoring system, video conference, CATV etc. Huawei attaches much importance to R&D and its sustainable development as well. 10% of annual revenues are put back into R&D. Among its over 15,000 employees, 85% are holders of bachelor's degree or above. Huawei's annual revenue in 1998 was 1.1 billion USD, ranking it the tenth of China's Top 100 Electronics Companies. In 1999, the annual revenue was 1.5 billion USD. Its products have been put into operation in more than 30 countries and regions including USA, Russia, Ukraine, Lithuania, Bulgaria, Algeria, Kenya, Yemen, Laos, Hong Kong etc. Huawei has also set up a joint venture in Russia.

[rit]

Huawei Gets Closer to Nasdaq China's controversial military-backed telecoms equipment maker Huawei Technologies could be making a bid for a back-door listing in the United States after forming a partnership with a company whose shares trade on the loosely-regulated bulletin board of the Nasdaq stock exchange. Esoftbank Shenzhen, a software-systems firm based in southern China, said in late June that it would team up with Huawei to tap the software outsourcing market in the telecoms sector in China and abroad. So far, the deal does not involve any commitment of capital from Huawei, but industry sources say both sides are considering such a move. Huawei's plans for its own U.S. listing have been put off after controversy erupted in March over the company's provision of telecoms equipment to Iraq. Esoftbank's history is no less controversial. In its former guise as Natural Way Technologies, the company was implicated in the campaign-funds scandal in the U.S. under former President Bill Clinton.

[rit]

Opps. The rest of the story....

A U.S. Senate investigation in 1998 found that Natural Way paid Democratic Party fund-raiser Johnny Chung $380,000 in 1996, hoping that his political connections would help it achieve a Nasdaq listing. Sam Wu, an Esoftbank official in Beijing, says the company is still angling to achieve a Nasdaq listing but would not speculate on whether Huawei would invest in the company. Huawei officials declined to comment. Esoftbank reported a loss of $1.2 million on revenues of $1.1 million last year. It expects to earn $1 million a year from the Huawei tie-up. REF

[Woodkirk]

Wasn't there a report of China inking a telecom deal with the Taliban a couple months ago?

[rit]

Yes there was. For details, see http://pub5.ezboard.com link and read the story line China: Huawei's Massive U.S. Connections.

[rit]

This quote does not surprise me. "A former officer of the People’s Liberation Army, Ren Zhengfei founded the company in 1988 as a reseller of imported telecommunications equipment" REF.

[Mixer]

And what should be done with China if in fact they support the taliban.
I would say that we had some serious talking to do with them.
They have not be USA friendly in 2001 have they?

[Mind-numbed Robot]

Thanks for all the good information. I wonder what all those U.S. firms who were tripping all over themselves to get a piece of the China market now think. They were bamboozled and instead of them getting a foothold in China, China simply took their technology and became competitors all over the world, with the China market sewed up for them. The only U.S. firm to benefit was Slick Willie, Inc.

[Grampa Dave]

Milestogo thanks for finding and posting this thread.

rit, thanks for your replies with your excellent analysis and references re this thread. I will in another reply to you post another thread re possible financial connections of Clintoon and OBL.

I for one feel, that Clintoon never does anything major political wise unless he is paid and paid quite well to ignore terrorism or to grant pardons to past terrorists!

[Grampa Dave]

rit this is the link to the other web site where discussions on the financial aspects of OBL and Clintoon were discussed: (thread link)

We would appreciate your comments on any of the potential financial connections on this thread!

[OKCSubmariner]

FYI

[OKCSubmariner]

BUMP and see replies #3 and #4.

[OKCSubmariner]

Thanks for the heads up and informative replies.

The pattern here is that China telecoms are helping not only the Taliban but also Iraq. Iraq and Taliban probably communicate over Chinese communications.

This is part of CLinton's legacy.

The Repubs and the current administration know all this but not only say "lets move on" when it comes to China and Clinton, but they also still are saying hands off Iraq and CHina so far. A lot of wealthy Repubs have big investments in China and do not want relations to sour if we start dismantling China communications equipment by overthrowing Sadam in Iraq.

[Paul Ross]

Bump. Ping.

[ChaseR]

(have to leave for awhile - thanks for this ping Paul, I'll read this later - let's see what Black Jade contributes on this matter)

[The Kitten]

Who owns Huawei?

[rit]

Foreign telecoms companies in particular want to know who owns Huawei and who finances and supports it. The answers to these questions will determine whether they deal with Huawei as a partner or as a rival. Huawei executives offer few answers. Executive Vice-President Hu Yong drops his ready smile for a blank stare when questions about the company's ownership and backing are raised. The company is wholly owned by its staff, he says, and has "no connections whatsoever" to any government or military organization in China. However, a detailed investigation of the company by the REVIEW--based on interviews with company staff, industry figures and published information in China and Hong Kong--provides widespread evidence of strong official backing. Beijing wants Huawei to be its national champion, and it has the ability to make it happen. Not only is Huawei financially and politically supported by the Chinese government but also its origins as a military-backed company continue to pay dividends, including a contract to maintain the Chinese military's telecoms backbone. REF

[super175]

A lot of wealthy Repubs have big investments in China and do not want relations to sour

Here is what is going to happen with China, IMO.

The above is very correct. However, the aggregate US position is over extended into China. India is going to come on line, but the 'slowdown' with China and the rise of India to a more equal level will be controlled. It won't be a big 'in your face' kind of thing.

It will be a gradual thing over a decade.

To say they are not doing anything and just have the status quo isn't really true. Its just that there won't be a really big noticable effect for 4 or 5 yrs.

The China hands are/were arguing that if we invest in China, then Chinese people will buy our products. Well, we invested a whole lot, and Chinese people have not bought a whole lot yet.

Our exports to China: the #1 purchaser of US goods in China is US corporations. #2 is the Chinese government. Still, the imbalance is bad and getting worse.

We are not taking an approach to 'not do business with China' but rather, to also do business with India. In the process we will revive Hong Kong and other SE Asian nations, including Taiwan. By us investing in other places, it creates options for everyone. Now the option is China or no where, which leads them to be too bold.

Do you remember a few months back when the Chinese black listed an Investment Bank? That did not do the Chinese any favors.

All that FDI going to China is putting the aggregate US position in a vulnurable situation. In other words, look for a diversification, not some big event of one day when we stop trading with the Chinese. That won't happen.

So far India had its sanctions lifted, before Sept 11, and Vietnam just got normal trade status.

[super175]

Who owns Huawei?

I will give you a three letter, unofficial, not publicy acknowledged guess...