Huawei has launched its Mate 70 smartphone series, signalling a major step in its comeback to premium devices while showcasing HarmonyOS NEXT, its Android-free operating system. Priced from 5,499 yuan ($758), the Mate 70 challenges Apple’s iPhone 16 in China, boasting features like satellite paging, an advanced processor, and a 40% performance boost over previous models.
HarmonyOS NEXT represents Huawei’s bid for software independence after US export restrictions cut off access to Google services. The company announced that all new devices starting in 2025 will run the new system, while current Mate 70 users can choose between HarmonyOS 4.3 (Android-compatible) and the new HarmonyOS NEXT 5.0. Despite this shift, Huawei has retained Android compatibility as a backup while growing its app ecosystem, which already includes 15,000 applications.
The Mate 70 also highlights China’s advancing chipmaking capabilities, reportedly featuring SMIC-produced Kirin 9100 processors in higher-end models. This achievement underscores Huawei’s resilience despite ongoing US export controls and the addition of Chinese firms to trade blacklists. Huawei’s rebound is reflected in its rising market share, now ranked as China’s second-largest smartphone vendor with over 10 million units shipped in recent quarters.
The launch of the Mate 70 marks Huawei’s increasing competition with Apple and other global players in the world’s largest smartphone market, fueled by patriotic support for its technological breakthroughs.
According to Morgan Adamski, executive director of US Cyber Command, Chinese hackers are embedding themselves in US critical infrastructure IT networks to prepare for a potential conflict with the United States. He announced that China-linked cyber operations aim to secure strategic advantages in the event of a major clash.
These operations involve compromising key networks and positioning themselves to execute disruptive attacks. Examples include manipulating heating, ventilation, and air conditioning (HVAC) systems in server rooms or disrupting vital energy and water controls, officials said earlier this year.
Speaking at the Cyberwarcon security conference in Arlington, Virginia, Adamski emphasised the scale of the threat, noting that the US government has launched globally coordinated efforts to counter these operations. These efforts include offensive and defensive measures designed to degrade and disrupt China’s cyber activities worldwide. Actions range from exposing cyber campaigns to imposing sanctions and issuing cybersecurity advisories, with support from allied nations.
Earlier, US Senator Mark Warner described a suspected China-linked cyberespionage campaign, dubbed ‘Salt Typhoon,’ as the worst telecommunications hack in US history. Beijing has repeatedly denied conducting cyberattacks on US entities.
Wang Shouwen, China‘s vice commerce minister, held discussions with Jay Puri, Nvidia‘s executive vice president for worldwide field operations, in Beijing on Monday, according to China’s Ministry of Commerce.
Details of the meeting were not disclosed, but the talks underscore Nvidia’s growing significance in the global tech landscape and its potential role in China’s semiconductor sector.
The meeting comes amid heightened tensions over technology trade between China and the United States, where Nvidia is a leading player in advanced chip production. Both sides may seek to address mutual interests while navigating ongoing restrictions and competition in the semiconductor industry.
China‘s low Earth orbit satellite firm, SpaceSail, has signed an agreement with Brazilian state telecom Telebras to provide satellite broadband services. The deal was announced during President Xi Jinping’s state visit to Brazil, following the G20 summit in Rio de Janeiro.
SpaceSail’s entry into Brazil marks its first international venture, challenging Elon Musk’s Starlink, which has over 6,000 satellites globally and serves various sectors in Brazil. The Thousand Sails Constellation will power SpaceSail’s services, offering connectivity in remote areas.
Brazil’s government aims to diversify satellite service providers amid recent tensions involving Starlink and Musk’s social media platform X. China’s growing satellite presence includes 1,059 satellites, with plans for massive constellations to rival Starlink’s dominance.
The Federal Communications Commission (FCC) has proposed a $735,000 fine against Chinese video doorbell manufacturer Eken over security issues and false information. Investigations revealed the devices exposed sensitive data, including users’ home IP addresses and WiFi details, while enabling unauthorised access to photos and videos through simple proximity-based actions.
The FCC also flagged that Eken’s registered US agent address was invalid, sparking broader scrutiny. The devices, sold on platforms such as Amazon and Walmart, prompted additional concerns earlier this year when Senator Marco Rubio criticised their lack of adequate security protections. He highlighted the risk of hackers accessing private images and videos from homes.
Eken’s case forms part of wider US efforts to address security risks from Chinese-made technology. FCC Chair Jessica Rosenworcel announced an audit of certifications tied to similar agents, warning about the potential for misuse ranging from domestic abuse risks to state-backed surveillance. Retailers were previously urged to stop selling such insecure Internet of Things (IoT) devices.
The issue comes as US agencies increase scrutiny on Chinese tech firms. A ban on new equipment authorisations for listed Chinese telecom and surveillance firms is already in place, while the Commerce Department has proposed measures to limit Chinese-made vehicle software.
US authorities have revealed a massive cyberattack on American telecommunications networks, describing it as the ‘worst telecom hack in our nation’s history.’ Linked to Chinese hackers, the breach targeted multiple telecom companies and allowed the interception of surveillance data meant for US law enforcement. According to a joint FBI and CISA statement, the hackers accessed sensitive call records and communications, particularly involving individuals in government and political roles.
The attack also raised alarms after reports suggested telephones belonging to Donald Trump, JD Vance, and other high-profile political figures were compromised. Senator Mark Warner, chairman of the Senate Intelligence Committee, warned that China’s long-term efforts to infiltrate global telecom systems pose a grave security risk. Hackers reportedly managed to listen to phone calls and read text messages, going beyond what the Biden administration has publicly acknowledged.
China has consistently denied allegations of hacking foreign systems, and its embassy in Washington declined to comment on the latest claims. Warner criticised the lack of sufficient safeguards, stating, “The barn door is still wide open,” as concerns over US telecom infrastructure security intensify.
As the US prepares for Donald Trump’s second term, China is significantly increasing its semiconductor imports from the US, anticipating potential sanctions. In October, China imported $1.11 billion worth of microchips, a 60% rise from the previous year, and has already imported $9.61 billion in the first ten months of 2024, marking a 42.5% year-on-year increase. This surge reflects China’s growing demand for US semiconductors, particularly CPU-based processors and chips for storage and signal amplification, which align with its AI ambitions.
Despite these imports, China faces hurdles in advancing its chip technology. US sanctions have crippled Huawei’s ability to develop competitive AI chips, with the company’s upcoming processors lagging years behind NVIDIA’s offerings. This setback is largely due to restrictions on access to advanced lithography equipment, such as ASML’s EUV tools, essential for creating cutting-edge chips.
Meanwhile, China has been ramping up its chip manufacturing efforts, investing $25 billion in equipment in the first half of 2024, surpassing spending by Korea, Taiwan, and the US. However, as one-third of global semiconductor demand, China’s position remains critical for the industry. The impact of Trump’s potential tech restrictions, whether broad or selective, will likely influence the global semiconductor market, requiring careful balancing of US production and Chinese demand.
Alibaba Group is merging its domestic and international e-commerce platforms into a single business unit for the first time, the company announced on Thursday. The new unit, Alibaba E-Commerce Business Group, will combine the Taobao and Tmall Group with the Alibaba International Digital Commerce (AIDC) Group, which oversees platforms like AliExpress and Alibaba.com.
Jiang Fan, who previously headed Tmall, will lead the newly formed unit. Jiang, who faced a demotion in 2020 following an online scandal, will report directly to Alibaba’s CEO, Eddie Wu. Wu emphasised that the future competitive landscape in e-commerce will be shaped by global supply chain capabilities, fulfilment, and consumer service.
This move is part of Alibaba’s larger restructuring, which saw the company split into six business units last year. While Alibaba has faced increased competition from platforms like Pinduoduo, Temu, and TikTok, the company’s international division, under Jiang’s leadership, has posted strong growth, including a 29% increase in the September quarter.
Despite challenging market conditions in China, Alibaba has shown signs of stabilising its position. The company reported strong results during this year’s Singles Day sales, with robust growth in sales and a record number of shoppers, surpassing analyst expectations.
Huawei plans to begin mass-producing its Ascend 910C AI chip in early 2025, despite ongoing struggles to achieve sufficient production yields due to US trade restrictions. The Chinese telecom giant has already sent samples to tech firms and started taking orders for the chip, designed to rival Nvidia’s high-performance processors. The company faces significant challenges, as restrictions on advanced manufacturing technologies have limited its chip-making efficiency.
The Ascend 910C is produced by Semiconductor Manufacturing International Corp (SMIC) using an N+2 process but suffers from a yield of just 20%—far below the 70% required for commercial viability. Previous Huawei processors, including the 910B, achieved yields of around 50%, leading to delays in fulfilling orders from major clients like ByteDance. Washington’s restrictions, which prevent access to critical Dutch lithography equipment, have further constrained China’s ability to produce advanced semiconductors.
Huawei’s reliance on SMIC has been costly, with chips produced on its advanced nodes priced up to 50% higher than alternatives. While the company has sought supplemental production from Taiwan’s TSMC, US authorities have tightened export controls, limiting access to cutting-edge chips and forcing Huawei to prioritise strategic government and corporate orders. The escalating trade tensions underscore the geopolitical struggle between the US and China over technological dominance, with both nations doubling down on policies to secure their interests.
As Beijing pushes for self-reliance in semiconductors, Huawei’s production challenges reflect the broader impact of US restrictions on China’s tech sector. With further curbs on the horizon, Huawei’s success in advancing its AI chips may shape the next phase of the US -China tech rivalry.
Senator Richard Blumenthal has reaffirmed that ByteDance must divest TikTok’s US operations by January 19 or risk a ban. The measure, driven by security concerns over potential Chinese surveillance, was signed into law in April. A one-time extension of 90 days is available if significant progress is made, but Blumenthal emphasised that laws cannot be disregarded.
Blumenthal also raised alarms over China’s influence on US technology companies. Tesla’s production in China and the US military’s reliance on SpaceX were flagged as security risks. He pointed to Elon Musk’s economic ties with China as a potential vulnerability, warning that such dependencies could compromise national interests.
Apple faced criticism for complying with Chinese censorship and surveillance demands while generating significant revenue from the country. Concerns were voiced that major tech companies might prioritise profits over US security. Neither Apple nor Tesla has commented on these claims.
TikTok and ByteDance are challenging the divestment law in court. A decision is expected soon, but restrictions will tighten for app stores and hosting services if compliance is not achieved. The Biden administration has clarified that it supports ending Chinese ownership of TikTok rather than an outright ban.
