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

[adam_az]

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.)

from http://www.infoworld.com/article/04/01/06/HNchinawlan_1.html?networking

Initially, the rights to license WAPI were granted to 11 Chinese companies: Legend Group Ltd., Huawei Technologies Co. Ltd., Shenzhen Mingwah Aohan High Technology Co. Ltd., Wuxi Jiangnan Computer Technology Research Institute, Shanghai Koal Software Co. Ltd., Shenzhen ZTE IC Design Co. Ltd., SDT Telecom Group, Chengdu Westone Information Industry Co. Ltd., China IWNCOMM Co. Ltd., Shenyang Neusoft Co. Ltd. and Beijing Watch Data System Co. Ltd.

That list has now been expanded to around 20 companies, Li said. The names of the latest companies to be granted licensing rights for WAPI have not yet been made public and will be released at a later date, she said.

[adam_az]

First company I researched which is a WAPI licensee is a Chinese Red Army shill and IP theif

Huawei Technologies Co. Ltd

From http://www.businessweek.com/magazine/content/03_06/b3819060.htm

For months, Silicon Valley's cognoscenti have been wondering when Cisco Systems Inc. (CSCO ) would crack down on Huawei Technologies Co. The most famous network equipment company in China has long been racking up sales of switches and routers, some of which perform exactly like Cisco products and sell for a fraction of the price. Analysts and dealers who handle Huawei gear have marveled at the similarities, which extend right down to the user manuals and keyboard programming commands.

Huawei declined to speak with BusinessWeek. In a press statement, it denied the charges, saying that the company and its subsidiaries "have always respected intellectual property rights." And whatever happens in Texas, Huawei invests heavily in its own technology. Founded in Shenzhen in 1988 by a former People's Liberation Army officer, the $2.7 billion company enjoyed 68% growth in its international sales last year, to $552 million. In a few years, overseas sales could account for one-third of the total.

[OXENinFLA]

So I was 1/2 right.

[adam_az]

Which Chinese company ISNT part of the red PLA? ;)

[OXENinFLA]

good point.

[OXENinFLA]

And don't they hold the Panama Canal now?

[OXENinFLA]

http://www.ibmandtheholocaust.com/

[null and void]

During WWII, the Nazis nationalized IBM's German affiliate, and used it to their own ends.

And, of course we all know China would never nationalize all those foreign businesses on it's soil...

[adam_az]

I'm familiar with that book - it's a very slanted view of the facts.

IBM had about as much to do with the Holocaust is did Prescott Bush. A lot is made of his connection, too... until you look further and discover that he held one share of a company that invested in a company that had invested in a German company.

For the record, I'm Jewish, as far as I know, the entire European branch of my family was exterminated by the Nazis, I used to work for IBM... and I examined these claims very closely before I did so. In my experience, IBM is the most upstanding and principled company I've ever been involved with. IBM US basically lost all control of their German subsidiary, and their only goal was for the US to win the war, and them to regain their subsidiary and substantial amount of equipment. Believe me, IBM had nothing to gain by helping the Nazis... and if they had done so, the US Gov would have come down VERY hard on them. IBM attorneys are notoriously risk-averse, and their opinions on legal risk issues carry a LOT of weight in terms of the IBM foodchain.

[adam_az]

And, of course we all know China would never nationalize all those foreign businesses on it's soil...

I don't see that happening, it would stick the knife into any sort of foreign investment in China. Investors don't cotton to that sort of thing.

[null and void]

Time will tell.

[adam_az]

According to Businessweek, "IBM and the Holocaust" is full of it.

http://www.businessweek.com/magazine/content/01_12/b3724036.htm

[EEDUDE]

"I don't see that happening, it would stick the knife into any sort of foreign investment in China"

I don't know why any company here in the US would work with the Chinese. They will steal any IP that they can. It happens all the time.

They don't need the investment once they "own" the IP. They can then sell the products to other countries dirt cheap.

Many US Corporations will rue the day they started working with China.

[Iberian]

I don't get what the big deal is, they have probably stolen the chips already.

[Don Joe]

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

Oh, I suspect it goes far beyond that.

When I first got wind of this plan of theirs several months ago, the first thing that popped into my mind was that they were going to try to make it a global default, because of all the "offshoring" and "outsourcing" (read: "MADE IN CHINA"). In other words, any manufacturer that wanted to be able to build their stuff in China -- or buy stuff "Made in China" -- would have to accept that "standard" hardwired into the equipment.

Next, factor in the typical three-year lifecycle for computer hardware -- and, the rapid proliferation of wireless hardware, and before too long, pretty much everything would be "China-compliant".

At that point, Chinese operatives could drive from sea to shining sea, Pringles can in hand, sucking up all the data they wanted. There would be no such thing as "security" anymore for American industry or military.

Call me cyincal, but that's what I think their plan was.

And call me bitterly cynical, but I think there's a better than even chance they'll pull it off yet, even with this Intel "difficulty." They want it bad enough, they'll work really hard at making it worth any company's trouble to implement it -- and the way things are going, they'll probably get the government to lean on 'em too! ("C'mon, China is an important trading partner. Let's not give them any grief over something that's so important to them, we don't want to provoke them into a trade sanctions war, do we?")

[Don Joe]

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

An acceptable loss from their perspective, when their foot is poised over our neck.

[Don Joe]

Of course, the chinese standard isn't open... so it probably has similar weaknesses to what plagues WEP. Crypto without peer review is basically worthless.

Think that one through again.

This is China we're talking about. "Unrestricted Warfare", remember?

Don't think "weaknesses", think "backdoors". They'd have to be nuts not to include a backdoor, a la Clinton's failed "Clipper Chip" initiative.

Think about it. WHY are they so insistent that their gov't-developed secret crypto be built into everything?

Economics of scale, combined with the "facts on the ground" (sooner or later, pretty much everything will be "made in china") will bring us to a point where their crypto will be on our hardware. All of our hardware.

Chinese operatives will be able to drive through every city in the country, Pringles can in hand, laptop a-hummin', sucking down terabytes of "secure" comms from American industry and government networks.

Got the creeps yet? If not, read it again.

[Don Joe]

And don't they hold the Panama Canal now?

They're also building the world's largest deepwater port in the Bahamas.

[adam_az]

This isn't for EVERYTHING, it's *only* a wireless encryption protocol, suspected to be a variant of elliptical cryptography.