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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