From: Securosis Highlights – US Returns Fire in Huawei/ZTE Report

Posted on 2012/10/10

a quick re-post from Securosis Highlights

US Returns Fire in Huawei/ZTE Report by (author unknown)

I had a call today with a Reuters reporter about the Huawei/ZTE deal being spiked by the US government. To be honest, there’s an aspect of this story I assumed someone else would mention first, but I haven’t noticed it being explicitly stated anywhere yet.

It’s a simple story-

  1. China hacks the crap out of the rest of the world.
  2. World doesn’t do dick due to a lack of real ability to apply meaningful consequences.
  3. Big Chinese business wants to expand globally.
  4. US (and probably the rest of the world) say, “ah ha!”

I don’t know if Huawei and ZTE are really a security risk, vs. a potential security risk (which they are for sure), but it doesn’t matter. This is all about return consequences, and no one in the US gov gives a crap if Huawei gets caught in the middle. In fact, it would be awfully nice if those executives pressured their own government to back down.

The real risk in the Huawei/ZTE deals don’t matter at this point- it’s all about what few consequences the US can create for the Chinese government.

– Rich
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