Articles Tagged with China

HuaweiInformation is a priceless commodity in today’s world, and while it may not be something that can be protected physically, many would go to extreme lengths to keep their information more secure than even some of the largest banks. The U.S. is no different, risking an already sensitive relationship with China in order to remove any risk of intellectual property theft.

The Chinese company Huawei specializes in telecommunication equipment and other technology-based services and products. The U.S. and other western government figures have grown suspicious of this company, and have remarked their concern for the possibility of using this technology to spy and gain private information. This fear of a breach in security has led to a number of incidents, and none have led to anything but tension between the western world and China.

The President’s national security adviser John Bolton has already begun a campaign to remove all Huawei technology by informing the Israeli Prime Minister, Benjamin Netanyahu, that they are no longer comfortable with using Chinese-made telecom equipment for sensitive sectors.  A senior administration official states “We are all concerned about theft of intellectual property and Chinese telecoms companies that are being used by China for intelligence-gathering purposes,”

American SuperConducter Inc.A Chinese company, Sinovel Wind Group Co., has been ordered to pay American SuperConducter Inc. (AMSC) $57.5 million after being convicted of multiple charges regarding the theft of proprietary software. This theft resulted in substantial losses for AMSC, including $800 million in revenue and $1 billion in stock market value. Today, the Chinese company has recently made its last installment payment of the agreed-upon settlement, however, the trade theft first began in 2011 in what was expected to be a profitable partnership between the two companies.

Initial Partnership

Originally, AMSC and Sinovel Wind Group Co. worked together in what seemed like a mutually beneficial business partnership. The agreement was that Sinovel Wind Group Co. would produce windmills and purchase $800 million in software from AMSC to control and operate the windmills. However, in 2011, Sinovel Wind Group Co. abruptly ended their agreement and claimed that they no longer needed the software from AMSC to control their windmills.