Stories from Abroad

China’s technology boom, it turns out, has been largely built on top of Western technology. The ZTE incident, as it is called in China, may be the country’s Sputnik moment. Like the United States in 1957, watching helplessly as the Soviet Union launched the first human-made satellite, many people in China now see how far the country still has to go.

An overhaul of Europe’s telecoms laws, aimed at stimulating investment in new networks, has been branded a missed opportunity for the industry. The new European electronic communications code, the biggest shake-up in the sector’s governance since 2009, was approved on June 6. The agreement coincided with the release of a European Court of Auditors report that showed the European Union’s goal of connecting half of the region’s households to ultrafast broadband with speeds of 100 Mbps by 2020 was well behind target.

Chinese phone maker Huawei said it has never collected or stored Facebook user data, after the social media giant acknowledged it shared such data with Huawei and other manufacturers. Huawei, a company flagged by US intelligence officials as a national security threat, was the latest device maker at the center of a fresh wave of allegations over Facebook’s handling of private data. Chinese firms Huawei, Lenovo, Oppo and TCL were among numerous handset makers that were given access to Facebook data in a “controlled” way approved by Facebook, according to Facebook.

Apparently, Members of Congress have begun scrutinizing Google’s relationship with China’s Huawei Technologies—roping another Silicon Valley giant into Washington’s escalating digital cold war with Beijing. The review—of a facet of Google’s Android operating system partnership with Huawei—comes after lawmakers questioned Facebook about its data partnerships with Huawei and three other Chinese electronics makers. Facebook said it would wind down the Huawei deal by the week’s end.

Secretary of Commerce Wilbur Ross announced that Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China (“ZTE Corporation”) and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE Kangxun”) (collectively, “ZTE”) has agreed to severe additional penalties and compliance measures to replace the US Commerce Department’s Bureau of Industry and Security (BIS) denial order imposed as a result of ZTE’s violations of its March 2017 settlement agreement.

Facebook has data-sharing partnerships with at least four Chinese electronics companies, including Huawei, a manufacturing giant that has a close relationship with China’s government. The agreements, which date to at least 2010, gave private access to some user data to Huawei, a telecommunications equipment company that has been flagged by American intelligence officials as a national security threat, as well as to Lenovo, Oppo and TCL.

The Federal Communications Commission wants to prohibit US companies from using its Universal Service Fund (USF) to buy equipment that could pose "a national security threat to the integrity of communications networks or the communications supply chain." That's broadly understood to mean network infrastructure made by China's Huawei and ZTE, two companies that the largest American carriers stopped working with in the US almost six years ago due to pressure from Congress. Nonetheless, US carriers are pushing back against the FCC's latest proposal.

The Federal Communications Commission’s efforts to block the Chinese company Huawei from US telecommunications contracts and supply chains is unconstitutional, misguided, “arbitrary and capricious,” Huawei said. The Chinese telecom giant devoted more than 100 pages to savaging the FCC proposal, which would deny money from the commission’s Universal Service Fund to companies that purchase equipment or services from companies that are deemed threats to national security. That list would include Huawei and ZTE, another Chinese telecom.

Forget Google versus Facebook. Forget Uber versus Lyft. Forget Amazon versus … well, everybody. The technology world’s most bruising battle for supremacy is taking place in China. And it could point to Big Tech’s future everywhere else, too.

The General Data Protection Regulation (GDPR), the European Union’s new privacy law, is drawing advertising money toward Google’s online-ad services and away from competitors that are straining to show they’re complying with the sweeping regulation. The reason: the Alphabet ad giant is gathering individuals’ consent for targeted advertising at far higher rates than many competing online-ad services, early data show.