Displaying items by tag: Trump Administration

Chinese telecommunication vendors ZTE and Huawei have both endured a difficult number of years in the US marketplace – and their issues have multiplied during the Trump administration.

ZTE were momentarily crippled and almost went out of business following a decision by the US Department of Commerce to ban US companies from using their equipment and products for 7 years. However, following an intervention from US President Donald Trump, the ban was overturned and the vendor was instead hit with a $1bn fine and has to adhere to a number of strict rules and regulations.

Huawei have also been subjected to sharp criticism and have been deemed by US intelligence as a serious threat to national security due to their close ties to the Chinese government. Observers believe that the aggression from the US towards the Chinese telecommunication vendors is part of Trump’s plan to use them as pawns in his trade war with China.

Tensions between Washington and Beijing escalated when ZTE were initially banned, and it sparked an angry backlash from China. The rest of the world looked on anxiously as the two economic superpowers clashed head-on, it has since deescalated, but the high-profile arrest of Huawei CFO Meng Wanzhou in Vancouver has once again put diplomatic relations between the two countries under the microscope.

However, the situation in the US for both ZTE and Huawei is set to worsen following reports that US President Donald Trump is set to issue an executive order that would effectively ban operators in the country from using the Chinese manufacturer’s equipment and products.

Reuters has reported that the Trump administration has been mulling over the order for eight months, but it expected to formally enact it later this month.  It is said the order would not name Huawei or its compatriot ZTE by name but would give the US Department of Commerce scope to ban any supplier it suspects of being a threat to national security.

Published in Telecom Vendors

US government is set to intervene into the long-running saga between technology giants Apple, the EU and the Irish government. The EU ordered the iPhone maker to pay back €13 billion in taxes it claimed it owed Ireland.

However, in a bizarre turn of the events the Irish government rejected the EU’s ruling that it was owed €13 billion in back taxes and said that Apple hadn’t breached any tax laws in Ireland. The EU insisted that Apple had secured favorable tax incentives from the Irish government which amounted to illegal subsidies and issued the record tax demand against the US tech leaders.

Apple decided to take its case to Luxembourg-based General Court, which is Europe’s second highest in December in light of the ruling by the EU. The decision by the EU was heavily criticized by the Obama administration which alleged that the EU was attempting to help itself to cash that should have ended up in the US.

The Trump administration has subsequently proposed a tax break on $2.6 trillion in corporate profits being held offshore as part of its own tax reform, although it has not stated anything in public in relation to Apple’s tax row with the EU.

A source close to the case that who wishes to remain anonymous confirmed that the US had filed an application with the EU in relation to the long-running saga between Apple and EU decision-makers. The source said, “I can confirm the United States filed an application with the European Union General Court to intervene in the case involving the retroactive application of state aid rules to Apple.”

It has also been reported that The General Court will deal with the case in late 2018, although that has not been officially confirmed. Apple firmly believes that it is a convenient target for the EU and that EU competition enforcer used an ‘absurd theory in coming with the punitive figure. Other companies currently embroiled with the EU in relation to tax issues in Luxembourg are Amazon and McDonalds.

Ireland, the Netherlands, Luxembourg, Starbucks, Fiat Chrysler Automobiles and several other companies that were also ordered to pay back taxes to other EU countries have similarly challenged their EU rulings.

Published in Government

The US government has announced that it is set to refocus its efforts on examining ways in which it can help speed up the process of taking new technologies to the marketplace. The Trump administration has announced its intentions to bring together a group of drone makers, wireless companies and venture capitalists to explore practices that will enable the commercialization of these technologies in a much more streamlined fashion.

It has been confirmed that President Donald Trump will meet with the CEOs of General Electric Co, Honeywell International Incorporated and AT&T. Representatives from major drones industries and venture capitalists will also attend the meeting as part of a combined effort to focus on innovative technology in a bid to kick-start new job growth.

The White House’s deputy chief technology officer, Michael Kratsios has said the primary objective of the discussions is to drive ‘economic growth’. He said: “The goal of the session is to find ways the United States can maintain its leadership, creating and fostering entirely new technologies that will drive our economic growth."

The Trump administration has expressed its desire to promote the development and commercialization of emerging technologies – and has shown a particular interest in the development of unmanned drones and 5G wireless technologies. Some analysts have predicted that the impact of 5G will be similar to that of electricity.

The Obama administration has implemented rules and practices that enabled low-level small drones to be deployed for education, research and routine commercial use. It has been reported that the Trump administration is currently weighing up the option of expanding drone use for purposes such as deliveries where aircraft would fly beyond the sight of an operator. However, security issues would need to be resolved before such legislation could be passed.

The FAA has projected that by 2021 the number of small hobbyist drones will more than triple – whilst the commercial drone fleet will increase tenfold to about 442,000. In addition to this, last year, the FCC cleared the way for 5G - with the race to commercialize the technology underway which is expected to be deployed by 2020.

New 5G networks are expected to provide speeds at least 10 times and maybe 100 times faster than today's 4G networks. The next generation of wireless signals needs to be much faster and far more responsive to allow advanced technologies such as virtual surgery or controlling machines remotely, regulators say. The networks could help wirelessly connect devices such as thermostats or washing machines to facilitate the internet of things.

Published in Government