The Last Chance to Defeat China and Win Back the Cyber Domain?

Two months ago, when Zooming In did a story on Huawei and global 5G deployment, Huawei was poised to take control of much of the world’s cyber domain. We talked about the national security implications of that prospect. And we observed the U.S. efforts to raise awareness of that risk. Two months later, when we did another story on this topic, we realized the world knows Huawei a lot better through these efforts, but Huawei’s momentum has not stopped. In fact, Huawei and China are playing a grander game. They have a brilliant strategy that is working well with the very nature of a crony capitalism. Can this battle still be won by the free world? And what does it take to win? Let’s find out in this edition of Zooming In.
F

The U.S. Wants to Ban Huawei. But in Some Places, AT&T Relies On It.

U.S. officials have told telecommunications executives around the world to steer clear of Huawei Technologies Co., calling the company a national-security threat, but that hasn’t prevented AT&T Inc. T 0.72%from using the Chinese company’s equipment in Mexico.

While AT&T has kept Chinese equipment out of its domestic networks, industry executives say the U.S. company uses Huawei’s gear to run a large part of the wireless network in Mexico, where the electronics giant is as welcome as any other supplier.

Huawei boxes sit atop cellphone towers across Mexico, where AT&T is the No. 3 provider in terms of wireless subscribers. The Dallas company inherited much of its Mexican gear through acquisitions, though executives say it also has used the Chinese supplier to upgrade its 4G network in recent years.

“We are the most significant vendor in this country,” Cesar Funes, a Huawei vice president in Mexico, said in an interview. “We respect, of course, headquarters’ discussions with their governments. We just continue supplying them what we are asked to supply.”

“When we upgraded our Mexico network to 4G LTE, we replaced Huawei in our data core network with equipment from the same suppliers we use in the United States, because it gave us consistency in design and scale in purchasing,” the spokesman said. “We expect to harmonize our networks in the same way when we upgrade to 5G in Mexico.”

Huawei competes with Sweden’s Ericsson AB and Nokia Corp. of Finland to equip cellphone network operators. Most large telecom companies keep two or more suppliers in the mix to maintain leverage in future negotiations.

.. Huawei is the world’s top telecom supplier, according to market analyst Dell’Oro Group. Its success abroad has alarmed American officials who fear that telecom executives won’t be able to avoid using Chinese producers, especially in countries with close economic ties to the U.S.

Today’s 4G networks are linked across borders, but future 5G networks could make national boundaries even less relevant. Mr. Strayer said newer cell-tower equipment will be more than “dumb” conduits for information, leaving a broader swath of cellphone networks vulnerable to potential snooping.

AT&T entered Mexico in late 2014 after the Mexican government enacted legislation to enhance competition in a famously concentrated telecom market. The Dallas company pieced together a wireless company by snapping up two smaller players, Iusacell and Nextel Mexico, inheriting a dense network of machinery bought from Huawei, among other suppliers.

.. AT&T doubled down on Huawei over the next four years as it upgraded the infrastructure it acquired to support 4G service. A senior AT&T executive in 2016 told an industry publication that the supplier’s performance was “excellent.” The company has estimated the price of replacing the Huawei electronics it has in Mexico and found the cost prohibitive, according to a person familiar with the matter.

.. The Chinese company, which also makes cellphones, has spent years raising its profile in Mexico. It had its brand name splashed across jerseys for the popular soccer team Club América—until the AT&T logo took its place. When AT&T’s Mexican headquarters moved into a glassy tower finished in 2016, Huawei moved into a satellite office a floor away to stay close to its client.
.. AT&T has bet that a Mexican middle class can boost its future profits. The company invested more than $7 billion, including the $4.4 billion spent to acquire Nextel and Iusacell, over the past four years to improve its network there.

Trump’s immigration policies have been a failure. Neither he nor Democrats have much of a solution to the current problem.

For the president, immigration is a proxy for many issues — national security, domestic security, cultural change, nationalism, even nostalgia. The president’s rhetoric inflames the left as much as it energizes his loyalists, which is exactly his purpose. Democrats oppose Trump’s policies and cry foul when he seeks to blame them. They also point out that Trump tried to use immigration during the closing weeks of last year’s midterm elections, only to see his party lose its majority in the House.

Immigration will continue to animate Trump’s core supporters and will likely be one of two pillars of his reelection campaign. The other is the economy, the issue he will look to as a bridge to other voters whose support he will need to win what looks to be an extremely competitive election. Here, too, the Democrats appear to be struggling to find their own voice on what should be a central part of a presidential campaign message.

.. The new Battleground Poll by the Tarrance Group and Lake Research Partners under the auspice of Georgetown University’s Institute of Politics and Public Service shows the president holding a clear advantage over Democrats in Congress on which party people trust to deal with the jobs and with the economy. Democrats need to narrow or reverse that margin.

As an insurance policy, Trump has already gone on the attack against the Democrats on the economy, playing the “socialism” card. He has seized on Democratic proposals for a Medicare-for-all health-care plan and a Green New Deal, both of which in their most expansive iterations would require a heavy dose of government intervention and regulation, warning of dire consequences to the economy.

Candidates like Sen. Bernie Sanders (I-Vt.) and Sen. Elizabeth Warren (D-Mass.) have economic messages built around populist us vs. them themes, including attacks on big corporations and wealthy individuals. Their platforms contain the broad promise to rebalance the economic scales in favor of middle- and working-class Americans, in part through a variety of new taxes on those corporations and wealthy individuals. Warren in particular has offered a fresh list of detailed policies.

Most of the Democratic presidential candidates favor new taxes on the wealthy. But at this stage, most haven’t really said how they would pay for what they propose. The Democrats are often more focused on other issues than on the centrality of the economy in the lives of voters. Another sign of a lack of consensus in the party is the inability of House Democrats to agree on the outlines of a new budget.

The president has begun to set the themes for his reelection campaign. Democrats have vowed not to make the mistakes in 2016 of focusing too much on Trump’s fitness to be president. But they can’t ignore legitimate questions about how they would govern — or how they will credibly respond to the president’s attacks on his issues of choice.

Trump Tweets Lengthy Attack on F.B.I. Over Inquiry Into Possible Aid to Russia

WASHINGTON — President Trump on Saturday unleashed an extended assault on the F.B.I. and the special counsel’s investigation, knitting together a comprehensive alternative story in which he had been framed by disgraced “losers” at the bureau’s highest levels.

In a two-hour span starting at 7 a.m., the president made a series of false claims on Twitter about his adversaries and the events surrounding the inquiry. He was responding to a report in The New York Times that, after he fired James B. Comey as F.B.I. director in 2017, the bureau began investigating whether the president had acted on behalf of Russia.

In his tweets,

  • the president accused Hillary Clinton, without evidence, of breaking the law by lying to the F.B.I. He claimed that
  • Mr. Comey was corrupt and best friends with the special counsel, Robert S. Mueller III.
  • He said Mr. Mueller was employing a team of Democrats — another misleading assertion — bent on taking him down.

Individually, the president’s claims were familiar. But as the special counsel’s inquiry edges ever closer to him, Democrats vow a blizzard of investigations of their own and the government shutdown reaches record lengths, Mr. Trump compiled all the threads of the conspiracy theory he has pushed for many months in an effort to discredit the investigation.

Mr. Trump accused the F.B.I. of opening “for no reason” and “with no proof” an investigation in 2017 into whether he had been working against American interests on behalf of Russia, painting his own actions toward Russia as actually “FAR tougher” than those of his predecessors.

The Times article, published Friday evening, reported that law enforcement officials became so alarmed by Mr. Trump’s behavior surrounding his firing of Mr. Comey that they took the explosive step of opening a counterintelligence investigation against him.

Naming several of the bureau’s now-departed top officials, including Mr. Comey and his deputy, Andrew G. McCabe, Mr. Trump said the F.B.I. had “tried to do a number on your President,” accusing the “losers” of essentially fabricating a case. “Part of the Witch Hunt,” he wrote — referring dismissively to the investigation now being overseen by Mr. Mueller.

At the time he was fired in May 2017, Mr. Comey had been leading the F.B.I.’s investigation into Russia’s attempts to influence the 2016 presidential election, and the officials believed that his removal, in hindering the inquiry, posed a possible threat to national security. Their decision to open the case was informed, in part, by two instances in which Mr. Trump tied the firing to the Russia investigation.

The inquiry they opened had two aspects, including both the newly disclosed counterintelligence element and a criminal element that has long been publicly known: whether the firing constituted obstruction of justice.

When Mr. Mueller was appointed days later, he took over the joint inquiry as part of his larger investigation of Russia’s action in 2016 and whether anyone on the Trump campaign conspired with Moscow. It is not clear whether he is still pursuing the counterintelligence matter, and no public evidence has emerged that Mr. Trump himself secretly conspired with the Russian government or took directions from it.

Mr. Trump indicated on Saturday that he had not known of the existence of the counterintelligence investigation before the Times article, and he did not dispute the newspaper’s reporting.

But he made clear that he viewed any such inquiry as illegitimate from the start. He presented it, without evidence, as part of a vast, yearslong conspiracy to undo his presidency.

In the tweets, Mr. Trump defended his decision to fire Mr. Comey — “a total sleaze!” — at length, accusing the former director of overseeing a “rigged & botched” investigation of Mrs. Clinton, and leading the agency into “complete turmoil.” Democrats and Republicans alike wanted Mr. Comey removed, he said.

“My firing of James Comey was a great day for America,” Mr. Trump wrote. “He was a Crooked Cop.”