US steps up pressure on Huawei, ZTE

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A man holds a sign calling for China to release Wang Bingzhang and former Canadian diplomat Michael Kovrig, at the Supreme Court bail hearing of Huawei CFO Meng Wanzhou in Vancouver, Canada. (Reuters)
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Canada detained Meng Wanzhou, chief financial officer of the Chinese telecommunications giant Huawei, at the request of the United States. (AP Photo)
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Huawei is viewed with suspicion in the US because of fears that their switches and other gear could be used to spy on Americans. (Reuters)
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Huawei is viewed with suspicion in the US because of fears that their switches and other gear could be used to spy on Americans. (Reuters)
Updated 17 January 2019

US steps up pressure on Huawei, ZTE

  • Washington has been pressing allies to refrain from buying Huawei’s switches and other gear because of fears they will be used by Beijing for espionage
  • Canada detained Huawei founder Ren Zhengfei’s daughter, Meng Wanzhou, who is Huawei’s chief financial officer, in December at the request of US authorities

WASHINGTON/BEIJING: A bipartisan group of US lawmakers introduced bills on Wednesday that would ban the sale of US chips or other components to Huawei Technologies Co. Ltd, ZTE Corp. or other Chinese telecommunications companies that violate US sanctions or export control laws.
The proposed law drew sharp criticism from China where Foreign Ministry spokeswoman Hua Chunying called the US legislation “hysteria,” intensifying a bitter trade war between Beijing and Washington.
The bills were introduced shortly before the Wall Street Journal reported federal prosecutors were investigating allegations that Huawei stole trade secrets from T-Mobile US Inc. and other US businesses.
The Journal said that an indictment could be coming soon on allegations that Huawei stole T-Mobile technology, called Tappy, which mimicked human fingers and was used to test smartphones.
Huawei said in a statement the company and T-Mobile settled their disputes in 2017 following a US jury verdict that found “neither damage, unjust enrichment nor willful and malicious conduct by Huawei in T-Mobile’s trade secret claim.”
Hua urged US lawmakers to block the bills.
“I believe the action of these few representatives are an expression of extreme arrogance and an extreme lack of self-confidence,” Hua said.
“Actually the whole world can see very clearly that the real intent of the United States is to employ its state apparatus in every conceivable way to suppress and block out China’s high-tech companies,” she added.
The legislation is the latest in a long list of actions taken to fight what some in the Trump administration call China’s cheating through intellectual property theft, illegal corporate subsidies and rules hampering US corporations that want to sell their goods in China.
In November, the US Department of Justice unveiled an initiative to investigate China’s trade practices with a goal of bringing trade secret theft cases.
At that time, Washington had announced an indictment against Chinese chipmaker Fujian Jinhua Integrated Circuit Co. Ltd. for stealing trade secrets from US semiconductor company Micron Technology relating to research and development of memory storage devices.
Jinhua, which has denied any wrongdoing, was put on a list of entities that cannot buy goods from US firms.
On Capitol Hill, Senator Tom Cotton and Representative Mike Gallagher, both Republicans, along with Senator Chris Van Hollen and Representative Ruben Gallego, both Democrats, introduced the bills that would require the president to ban the export of US components to any Chinese telecommunications company that violates US sanctions or export control laws.
The bills specifically cite ZTE and Huawei, both of which are viewed with suspicion in the US because of fears that their switches and other gear could be used to spy on Americans. Both have also been accused of failing to respect US sanctions on Iran.
“Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People’s Liberation Army,” Cotton wrote in a statement. “If Chinese telecom companies like Huawei violate our sanctions or export control laws, they should receive nothing less than the death penalty — which this denial order would provide.”
The proposed law and investigation are two of several challenges that Huawei, the world’s biggest telecommunications equipment maker, faces in the US market.
In addition to allegations of sanctions-busting and intellectual property theft, Washington has been pressing allies to refrain from buying Huawei’s switches and other gear because of fears they will be used by Beijing for espionage.
Huawei’s founder, Ren Zhengfei, denied this week that his company was used by the Chinese government to spy.
Canada detained Ren’s daughter, Meng Wanzhou, who is Huawei’s chief financial officer, in December at the request of US authorities investigating an alleged scheme to use the global banking system to evade US sanctions against Iran.
For its part, ZTE agreed last year to pay a $1 billion fine to the United States that had been imposed because the company breached a US embargo on trade with Iran.
As part of the agreement, the US lifted a ban in place since April that had prevented ZTE from buying the US components it relies on heavily to make smartphones and other devices.


Electric luxury vehicles, SUVs ‘more likely to cause accidents’

Updated 23 August 2019

Electric luxury vehicles, SUVs ‘more likely to cause accidents’

  • As EV sales rise, French insurer AXA warns that drivers are struggling to adapt to cars’ rapid acceleration

LONDON: Electric luxury cars and sport utility vehicles (SUVs) may be 40 percent more likely to cause accidents than their standard engine counterparts, possibly because drivers are still getting used to their quick acceleration, French insurer AXA said.

The numbers, based on initial trends from claims data and not statistically significant, also suggest small and micro electric cars are slightly less likely to cause accidents than their combustion engine counterparts, AXA said at a crash test demonstration on Thursday.

AXA regularly carries out crash tests for vehicles. This year’s tests, which took place at a disused airport, focused on electric cars.

Overall accident rates for electric vehicles are about the same as for regular cars, according to liability insurance claims data for “7,000 year risks” — on 1,000 autos on the road for seven years — said Bettina Zahnd, head of accident research and prevention at AXA Switzerland.

“We saw that in the micro and small-car classes slightly fewer accidents are caused by electric autos. If you look at the luxury and SUV classes, however, we see 40 percent more accidents with electric vehicles,” Zahnd said.

“We, of course, have thought about what causes this and acceleration is certainly a topic.”

Electric cars accelerate not only quickly, but also equally strongly no matter how high the revolutions per minute, which means drivers can find themselves going faster than they intended.

FASTFACT

Accident rates among luxury and SUV electric vehicles are 40 percent higher than for their combustion engine counterparts.

Half of electric car drivers in a survey this year by AXA had to adjust their driving to reflect the new acceleration and braking characteristics.

“Maximum acceleration is available immediately, while it takes a moment for internal combustion engines with even strong horsepower to reach maximum acceleration. That places new demands on drivers,” Zahnd said.

Sales of electric cars are on the rise as charging infrastructure improves and prices come down.

Electric vehicles accounted for less than 1 percent of cars on the road in Switzerland and Germany last year, but made up 1.8 percent of Swiss new car sales, or 6.6 percent including hybrids, AXA said.

Accidents with electric cars are just about as dangerous for people inside as with standard vehicles, AXA said. The cars are subject to the same tests and have the same passive safety features such as airbags and seatbelts.

But another AXA survey showed most people do not know how to react if they come across an electric vehicle crash scene.

While most factors are the same — securing the scene, alerting rescue teams and providing first aid — it said helpers should also try to ensure the electric motor is turned off. This is particularly important because unlike an internal combustion engine the motor makes no noise. In serious crashes, electric autos’ high-voltage power plants automatically shut down, AXA noted, but damaged batteries can catch fire up to 48 hours after a crash, making it more difficult to deal with the aftermath of
an accident.

For one head-on crash test on Thursday, AXA teams removed an electric car’s batteries to reduce the risk of them catching fire, which could create intense heat and toxic fumes.

Zahnd said that studies in Europe had not replicated US findings that silent electric vehicles are as much as two-thirds more likely to cause accidents with pedestrians or cyclists.

She said the jury was still out on how crash data would affect the cost of insuring electric versus standard vehicles, noting this always reflected factors around both driver and car.

“If I look around Switzerland, there are lots of insurers that even give discounts for electric autos because one would like to promote electric cars,” she said.