Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Cybersecurity
    • Cybersecurity
    • Mobile

    China Bends on Wireless Encryption, Continues Chip Tax

    By
    Mark Berniker
    -
    April 30, 2004
    Share
    Facebook
    Twitter
    Linkedin

      BEIJING—During conversations with several executives working in the Chinese wireless industry here, it became clear that the Chinese government is becoming increasingly aware of domestic technical problems and is now more responsive to the realities of the standards and procedures of the global wireless enterprise market.

      The Chinese government dressed up its decision to delay the implementation of a new wireless security standard as part of a wider trade deal with the United States. But the Chinese never agreed to give up on its plan to create its own wireless encryption standard at some point in the future.

      However, Chinese Vice Premier Wu Yi has said that when China implements any of its technology standards it will ensure any rules will be fair to U.S. businesses. China has agreed to drop a June 1 deadline for its WAPI (Wireless LAN Authentication and Privacy Infrastructure) encryption standard and will work with international standards-setting bodies such as the ITU going forward.

      “The whole government mentality has become very practical, and [there is] a recognition that domestic Chinese companies need more time to improve their performance before any new standards are ready for the market,” says Joan Wang, director of 3G strategy and planning at UTStarcom (China) Ltd.

      U.S. chip and telecommunications companies objected to a Chinese decision to extend free access to the WAPI standard to a select group of more than 20 Chinese telecommunications equipment makers.

      Under Chinas original WAPI plan, foreign vendors would then have to license the technology from the Chinese telecom companies, which many U.S. companies argued would be in strict violation of international free trade rules. Intel, Texas Instruments and Broadcom have been steadfast in their refusal to comply with Chinas original WAPI rules.

      Another critical issue for U.S. companies is that Chinas WAPI standard is not compatible with current Wi-Fi security standards. China has said it is not comfortable with the security provided in the 802.11 WLAN protocol, arguing that it poses a threat to its national security. The IEEE has been working to improve Wi-Fi security with additions such as the 128-bit Advanced Encryption Standard in the upcoming 802.11i specification.

      Meanwhile, moves are afoot for the Standardization Administration of China (SAC) to work with the IEEE on wireless broadband standards development. From May 17-20, the IEEE 802.16 broadband wireless working group will hold its first-ever meeting in China in the city of Shenzhen.

      “By next year, there will be more development of wireless broadband services in China, and greater importance is being attached to Wi-Fi,” says Xie Linzhen, vice president of the China Mobile Communication Association. Xie added that any controversy surrounding Intel and other chipmakers over WAPI “will be solved through negotiations.”

      Next Page: Avoiding royalty fees.

      China Bends on Wireless Encryption, Continues Chip Tax – Page 2

      One of the primary motivations for the Chinese developing their own technology standards is to avoid potentially expensive royalty fees for licensing western technology.

      Several sources in China said that while the Chinese government is developing a variety of homegrown technology standards, none is ready for global licensing. Neither WAPI nor TD-SCDMA (Time Division Synchronous Code Division Multiple Access) is well-developed, and both still face considerable technical obstacles. There is no question the Chinese government is going to continue developing its own standards, but considerable effort and fairness will have to arrive before U.S. and other international technology companies comply with any new technical security rules.

      The Chinese are very sensitive to being perceived as backing down to international pressure. As part of their wider U.S.-China trade agreement, Beijing got the Bush administration to reconsider its current ban on U.S. exports to China of high-tech products that could potentially have military applications.

      China was also successful in avoiding concessions on the issue of its continued imposition of a 17 percent VAT (value-added tax) on imported semiconductors. U.S. companies exported close to $2 billion in chips to China in 2003, based on statistics from the Office of the U.S. Trade Representative. The sale of those chips in China cost U.S. companies $344 million in Chinese-imposed duties.

      Prior to the U.S.-China trade agreement, the Bush administration filed a formal fair-treatment complaint against China to the WTO (World Trade Organization) on the chip VAT issue. The chip tax amounts to a rebate for Chinese companies, say U.S. chip companies and the SIA (Semiconductor Industry Association). It is unclear if and when the WTO will issue a ruling on this point.

      The U.S. has also been pressing China to stem the rampant tide of software, music and movie piracy of CDs and DVDs. As part of its trade deal with the United States, China has said it will begin to impose more stringent penalties for intellectual property piracy by the end of 2004. However, an informal survey of several stores and a number of underground markets in Beijing reveals it is possible to procure DVDs and CDs for $1 or $2, without any Chinese government involvement.

      /zimages/3/28571.gifCheck out eWEEKs Mobile & Wireless Center at http://wireless.eweek.com for the latest news, reviews and analysis. Be sure to add our eWEEK.com mobile and wireless news feed to your RSS newsreader or My Yahoo page: http://us.i1.yimg.com/us.yimg.com/i/us/my/addtomyyahoo2.gif

      Mark Berniker

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×