ARM cuts ties with Huawei after President Trump’s ban

“This morning, ARM announced that it was cutting ties with Huawei, in the interest of ‘complying with all of the latest regulations set forth by the U.S. government,'” Russell Brandom writes for The Verge. “It’s a catastrophe for Huawei’s device business, halting its access to current and future chip designs and coming on the heels of similar breaks from Google and Microsoft. Huawei is in deep, deep trouble, and we still don’t have a clear picture of why.”

“Security experts have been warning about Huawei for more than a year, but it’s only in the last week that those warnings have escalated into an all-out trade blockade on the company’s US partners,” Brandom writes. “There’s never been a full accounting of why the US government believes Huawei is such a threat, in large part because of national security interests, which means much of the evidence remains secret.”

“But as long as there was a pipeline from Huawei’s China headquarters to cell towers in the US, there would be a strong risk of Chinese surveillance agencies using it to sneak malware into the network, whether they did it with Huawei’s help or by hacking themselves into the middle. As intelligence agencies saw it, the risk was just too great,” Brandom writes. “That might not seem fair, but it’s at least a logical response to a real concern. Cell networks are a very tempting target for espionage, and China has a long history of this kind of spying.”

Read more in the full article here.

MacDailyNews Take: It’s not about cell towers or yet another dime-a-dozen brand of IP-trampling pretend iPhones, it’s about leverage.

Leverage: don’t make deals without it.Donald J. Trump, Trump: The Art of the Deal, 1987

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  1. Can hardly wait for my aapl stock to drop further due to messing with tarifs and trade bans. Oh wait, down another $3.63/share.
    Should have invested in aluminum stocks since the US does not seem to block Russia as it does China. Oh, that is because Russia never spys unlike like China……sigh!!!

    1. Russia? Ha! Who cares?

      Russia is a rounding error.

      GDP (US$million)

      #1. United States: $20,494,050
      #2. EU: $18,750,052
      #4 China: $13,407,398

      #11. Russia: $1,630,659

      1. Who cares? I am not talking money here, I am talking about spying. Do I assume correctly that you are among the morons that do not believe Russia spied on the US and tried to influence your elections? Let the Russian oligarch come in and provide aluminum jobs to the people of Kentucky. I am sure they only have good intentions…..comarade.

          1. So it was actually a continuing NSA operation. Since 2002. From the article:

            “The latest claim, reported in the German newspaper Bild am Sonntag, followed reports in Der Spiegel that the surveillance of Mrs Merkel’s phone began as long ago as 2002, when she was still the opposition leader, three years before being elected Chancellor. That monitoring only ended in the weeks before Mr Obama visited Berlin in June this year, the magazine added.”

        1. Buster, you are absolutely correct that First Idiot is a paid GOP troll. No matter how many Trump cronies go to jail, First will spread Trumpanzee propaganda. Oh look, one more corrupt Trump associate is charged: No matter what facts are presented, First will always retort with non sequitur, irrelevant, and weak whataboutism arguments. The reasons for Trump’s refusal to provide personal finances to government officials is obvious: there is no firewall between Trump’s personal banking and his businesses, and all of them are full of corruption. Trump has always and will always believe he is above the law, however, and he’s wasted not a single day attempting to convince First and the rest of his minions that the law doesn’t apply to Trump. There is no other rational explanation to explain why Trump wouldn’t simply release his finances to constitutionally authorized gov’t investigators and make the whole kerfuffle go away. An innocent man would happily comply and prove his innocence.

          Nevertheless, almost 1/3 of the US is so fully up Trump’s ass that they can’t see daylight. They’ve abandoned conservative principles in order to protect their cult figurehead. First will brag that Trump has chosen to donate his presidential salary to charity. What he refuses to do is follow the money, or acknowledge the fact that Trump has always used nonprofits and charitable donations — often illegally — for personal gain and tax sheltering. He brags about it when asked why a successful self-proclaimed billionaire doesn’t appear to pay any taxes for decades at a time.

          Then there is the matter of the golfing. Candidate Trump wooed the low information base with bullshit claims that he would be too busy as president to golf. He and his rabid rally nitwits including First Idiot viciously attacked Obama for golfing. But the facts are in: Trump has spent more time on the golf course in 2 years than Obama did in 8 years. Trump doesn’t usually meet constituents or engage in diplomacy on the golf course as many successful executives have, Trump goes to his own resorts, bringing along an extensive security detail. Total cost to US taxpayers: $102 million and counting. That’s 255 times the salary that Saint Trump claimed to not take.

          The breakdown from the Government Accountability Office:
          $81 million in over 24 trips to Florida
          $17 million in 15 trips to NJ
          $1 million for his junket to Los Angeles
          $3 million for his Scotland visit

          Next month Trump has planned a golf trip to Ireland. Apparently winning trade wars isn’t first on his mind right now.

          It appears to me that Trump’s lavish lifestyle and inability to do his job — which includes safeguarding the US from Russian and Chinese cyber warfare — will cost the US much more than just money, with negative effects for decades.

          It would be wise to take China to task for its trade violations, but not to blow up the world economy in the process. It would be wise to cut taxes, but only after stopping the insane deficit spending. It would be wise to solve international threats, but not by sabre rattling only the enemies of Russia and Saudi Arabia and clamming up whenever asked why war atrocities committed by those two nations are allowed to continue without a peep of protest. Wake up people. The scummiest creature in the swamp is Trump.

  2. I doubt that the ARM instruction set or processor architecture are standards-essential, rather than proprietary, so FRAND does not apply. Even if it did, ARM could not be required to commit an illegal act like supplying US technology in violation of a US trade embargo. The US can enforce its embargo with criminal charges or by a secondary embargo that would put ARM out of business.

    Huawei is allowed to continue making (in China) and using the ARM-technology chips it already has, but this freezes it out of being able to ever upgrade its CPUs and from receiving any technical support from ARM (their employees have been told to avoid talking to Huawei employees even if they encounter them at a conference).

    To all intents and purposes, this freezes the world’s second-largest phone maker out of any ability to upgrade its products until China develops its own independently developed chips, which it is years from achieving without massive IP theft that would spark further embargoes.

    This amounts to a nuclear option, and we all know who is the obvious target for a retaliatory strike.

  3. Now that foreign companies are being used/exploited for economic warfare I guess it’s a matter of if you aren’t with us you are our enemy too. This is all getting very War of the Roses where choices are all about survival and Machivellian tactics are used by the major protagonists while the rest of us are considered mere cannon fodder. Seems Game of Thrones may not be finished after all and the ending by no means precictable as new alliances form and decay. The answer will be who is over playing their hand in the end and that’s not exactly clear when friends are stabbed as often as percieved enemies.

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