Intel May Be Forced to Stop Selling Some Chips In China

Wall Street Journal | 3-10-04 | Ramstad and Chen

[at bay]

Intel Corp. said it could be forced to stop selling some computer chips in China this summer because it can't meet a deadline for compliance with a new Chinese government rule.

Intel's announcement was the first concrete indication that trade in key products could be hurt by the Chinese rule, which requires that personal computers, mobile phones and other wireless-data products sold in China must use a unique security standard developed by Beijing, starting June 1. It raised the temperature further in the simmering trade dispute between China and high-tech manufacturers from the U.S. and elsewhere over the controversial rule.

Regulators in Beijing met Wednesday to discuss how to proceed with implementation of the rule, amid growing pressure from multinationals and the U.S. administration to delay its implementation or rescind it altogether

[at bay]

All these companies that have embraced doing business with a police state shouldn't be surprised when they act like one.

[OXENinFLA]

mobile phones and other wireless-data products sold in China must use a unique security standard developed by Beijing

Why do I think this "unique security standard" would allow Beijing to spy (gasp) on it's people?

[Iris7]

Corporate America thinks they can make money in China, just like a mouse thinks he can get cheese out of the trap.

[WillL]

Will this end up in front of the WTO?

[Dr. Marten]

"Why do I think this "unique security standard" would allow Beijing to spy (gasp) on it's people?"

That is exactly what I was thinking. GPS chip maybe?

[OXENinFLA]

Intel may modify Centrino for China - TAIPEI TIMES

BLOOMBERG Tuesday, Mar 09, 2004,Page 12

Intel Corp, the world's largest maker of semiconductors, said it may have to modify its Centrino chips in China because of a law forcing imports to use local encryption technology.

Intel is "deeply concerned"(Have they been talking to Senator Daschel?) over the use of Chinese technology to meet specifications for WAPI, or wireless authentication and privacy infrastructure, and is talking with Chinese officials on the matter, Intel chief technology officer Patrick Gelsinger said at a press conference in Seoul.

"If the law stands in place, Centrino would require support" of Chinese technology, Gelsinger said. Still, "Intel has not said positively or negatively whether we would do that or not."

US officials asked China to drop plans to implement a law going into effect June 1 that would require all wireless imports to carry encryption technology produced only in China, which would limit sales of products ranging from pagers to laptop computers, the Asian Wall Street Journal reported last week.

The Centrino laptop chip was the centerpiece of Intel's marketing and sales efforts last year. The company spent US$300 million advertising the chipset for wireless laptops to promote mobile computing.

[OXENinFLA]

WASHPOST

since late last year about a Beijing requirement that all Wi-Fi, or wireless computing, gear sold in China incorporate a locally designed data encryption technology to which only 24 Chinese companies have access.(I'm sure hutchison whampoa ie.....The Chinese Red army....is on that list.)

snip..............

More on the opposition to the rule, from the Journal: "Last week, three senior U.S. officials -- Secretary of State Colin Powell, Commerce Secretary Don Evans and Trade Representative Robert Zoellick -- said in a letter to Chinese leaders that the encryption rule is 'inconsistent' with China's World Trade Organization commitments and 'will impose a significant new burden on both foreign and Chinese domestic suppliers.' ... If a technical solution isn't found and China goes through with its plan to impose the requirement by June 1, Intel will still be able to sell other microprocessors that don't include wireless-data techniques in China. But Centrino processors and chipsets are central to Intel's current lineup of products."

[BurbankKarl]

Does this surprise anyone? China has regularly ripped off businesses that set up shop there. Chevrolet had an entire car stolen...the knockoff actually came out before the original!

This scheme is to allow them to eavesdrop on there citizens.

And if you really think Clinton didn't take out the Chinese Embassy in Kosovo you are high...they were passing intel to Milosevic.

[OXENinFLA]

See post #7

[newgeezer]

Hey, two or three hundred million Americans' wishes directed world technology for a few decades. Can't hardly blame a billion Chinese for wanting their turn at the wheel.

It's coming. Not just yet, though.

[DustyMoment]

GREAT COMMENT!!!!

"Intel Corp. said it could be forced to stop selling some computer chips in China this summer because it can't meet a deadline for compliance with a new Chinese government rule."

Gee, does that mean the any jobs they shipped to China might go to India - or (gasp) even be shipped to the Philippines instead of remaining in the US where the technology was originally developed?

Nah, probably not!

[Kakaze]

" Why do I think this "unique security standard" would allow Beijing to spy (gasp) on it's people? "

Why can I imagine intel accepting this, then altering their production to include it in all their chips. Wouldn't it be expediant for them to alter one line of production rather than create a new line just for the chineese? Thus allowing them to spy on us all.

Or am I wearing too much tin foil?

[DustyMoment]

the any = that any

STUPID KEYBOARD!!

[biblewonk]

Most favored nation ping to you too. {grin}

[RightWhale]

Sounds like China is shootng itself in the foot with this.

[SolutionsOnly]

Hopefully, such nonsense will encourage Intel to invest in Free, non-communist economies. I don't see how any company could be comfortable with operations in a totalitarian state.

[OXENinFLA]

Thus allowing them to spy on us all.

Good point.

[newgeezer]

See my post #10. Sooner or later, we'll all be using what China wants.

[WillL]

Thanks!

[Ernest_at_the_Beach]

ndx