How digital devices and services will help transform the NHS Watch Now The US Massachusetts Institute of Technology (MIT) has axed collaborative ties with Huawei and ZTE over US federal investigations currently underway relating to the alleged violation of sanctions. Richard Lester, MIT's Head of the Department of Nuclear Science and Engineering, and Maria Zuber, Vice President for Research at MIT and a member of the National Science Board, published an open letter revealing the decision on Wednesday. The MIT leaders said the academic institution has introduced a new review process for "certain international collaborations." "MIT faculty naturally and enthusiastically seek out international projects and collaborators," Lester and Zuber said. "Because these relationships can present a distinctive set of risks and questions, MIT has long had processes for identifying such issues for any given project." Due to this risk assessment, MIT has decided to not accept "new engagements" with either Huawei or ZTE -- or their subsidiaries -- due to current federal investigations underway over alleged sanction violations. Projects involving MIT staff or students, as well as collaborative initiatives with researchers from the companies, all come under the umbrella of the review process. "Special attention will be paid to risks related to intellectual property, export controls, data security and access, economic competitiveness, national security, and political, civil and human rights, as well as potential impacts on the MIT community, consistency with MIT's core values, and alignment with MIT's academic mission," the letter reads. The companies, both of which are headquartered in Shenzhen, China, will be impacted by the cuts effective immediately. Lester and Zuber added that partnerships with China, Hong Kong, Russia, and Saudi Arabia will all be investigated over risk factors. "The institute will revisit collaborations with these entities as circumstances dictate," the MIT leaders said. See also: MIT reveals who self-driving cars should kill: The cat, the elderly, or the baby? Huawei's CFO Meng Wanzhou, who is also the daughter of company founder and president Ren Zhengfei, was arrested in December by Canadian authorities on behalf of the US. Now awaiting extradition from Canada, Wanzhou has been named in a federal case relating to the violation of Iran trade sanctions. A pair of indictments, unsealed in January 2019, alleges that Wanzhou concealed Huawei's relationship with Iran's Skycom, an affiliate of the company, and Huawei itself also conspired to steal trade secrets from T-Mobile. The US claims that Huawei "sold Skycom to itself" in order to circumvent the US' sanctions on Iran and remain compliant -- at least on the surface. However, the alleged sale was false. Wanzhou is also charged with lying to banks about the nature of the relationship between Huawei and Skycom. CNET: NASA, MIT test wild shape-shifting airplane wing Huawei also allegedly obstructed investigators by lying to the US government, whisking potential witnesses back to China, and by hiding and destroying evidence related to the case. Huawei has pleaded not guilty to the allegations made by US prosecutors relating to the theft of trade secrets from T-Mobile during 2012 and 2014. The company allegedly offered staff bonuses for the successful theft of intellectual property. ZTE, too, faces pressure from the United States over sanctions. President Trump lifted a ban on the export of ZTE products in July 2018, permitting the Chinese firm to resume business after the original penalty effectively crippled the company. The administration had previously concluded that ZTE violated trade sanctions by illegally shipping US equipment to Iran and North Korea. TechRepublic: Is Julia the next big programming language? MIT thinks so, as version 1.0 lands A bill has since been introduced by senators to reintroduce the ban should ZTE fail to live up to current trading standards. In March, Republicans proposed the US Protect Our Universities Act, which would establish a task force overseen by the Department of Education to monitor "sensitive" research projects at academic institutions to prevent surveillance or theft. Foreign students involved in sensitive work would be monitored under the rules, and any student with past or current citizenship in China, Russia, Iran, or North Korea would not be allowed to participate unless granted a special waiver. ZDNet has reached out to Huawei and ZTE and will update if we hear back. Previous and related coverage<doc-sep>The Massachusetts Institute of Technology is terminating all research and funding links with Chinese tech firms Huawei and ZTE in light of recent U.S. federal probes, according to a letter from university officials. MIT is one of several prestigious academic institutions in the U.S. to announce an end to ties with Huawei. Stanford University, the University of California, Berkeley and the University of Minnesota have cut all future research collaborations with the Chinese telecom company as well, according to the Hong Kong-based South China Morning Post. "MIT is not accepting new engagements or renewing existing ones with Huawei and ZTE or their respective subsidiaries due to federal investigations regarding violations of sanction restrictions," MIT Associate Provost Richard Lester and Vice President for Research Maria Zuber wrote in a letter to the faculty on Wednesday. In a 2017 presentation by Huawei, MIT was cited as a collaborator in the Huawei Innovation Research Program. The program is a global initiative "to identify and support world-class, full-time faculty members pursuing innovation of mutual interest," the SCMP reported the tech giant as saying. The halt in funding to Huawei and ZTE comes at a time of heightening tensions between the U.S. and China. U.S. lawmakers have said ZTE and Huawei equipment may represent national security risks, alleging that the companies' products could support Chinese espionage. Both companies have denied the claims. In January, the U.S. Department of Justice charged Huawei with allegedly violating U.S. sanctions against Iran and stealing trade secrets from U.S. telecom T-Mobile. Huawei and ZTE, however, may not be the only international entities affected by a halt in partnerships with the university. MIT's plans to cut ties with Huawei and ZTE is part of a bigger plan to ramp up its internal evaluation of international partners, the letter to faculty said. "Engagements with certain countries — currently China, Russia and Saudi Arabia — merit additional faculty and administrative review beyond the usual evaluations that all international projects receive," the MIT officials wrote. MIT's "elevated-risk" review process will pay special attention to "intellectual property, export controls, data security and access, economic competitiveness, national security, and political, civil and human rights," the letter said. ZTE declined to comment and Huawei did not immediately reply to CNBC's emailed request for comment about MIT's decision. For more about MIT's cut in funding links with Huawei and ZTE, see the article in the South China Morning Post.<doc-sep>(Reuters) - The Massachusetts Institute of Technology has severed ties with Huawei Technologies and ZTE Corp as U.S. authorities investigate the Chinese firms for alleged sanctions violations, the school said on Wednesday. The Logo of Huawei is seen at its showroom in Shenzhen, Guangdong province, China March 29, 2019. REUTERS/Tyrone Siu MIT is the latest top educational institution to unplug telecom equipment made by Huawei and other Chinese companies to avoid losing federal funding. "MIT is not accepting new engagements or renewing existing ones with Huawei and ZTE or their respective subsidiaries due to federal investigations regarding violations of sanction restrictions," Maria Zuber, its vice president for research, said bit.ly/2K528XI in a letter on its website. Collaborations with China, Russia and Saudi Arabia would face additional administrative review procedures, Zuber added. “The institute will revisit collaborations with these entities as circumstances dictate,” she said. Britain’s Oxford University stopped accepting funding from Huawei this year. “We’re disappointed by MIT’s decision, but we understand the pressure they’re under at the moment,” Huawei said on Thursday. The company denies the allegations of the U.S. government. “We trust the U.S. judicial system will ultimately reach the right conclusion,” Huawei said. ZTE did not respond to a Reuters request for comment. Representatives for Zuber and Richard Lester, an associate provost at MIT who also signed the letter, referred questions about details such as how much research was likely to be affected to MIT spokespeople, who did not immediately respond. In a letter to MIT faculty at the start of the current school year, Lester wrote that in cases where U.S. and Chinese interests are in direct conflict, MIT would prioritize its home country. Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder Ren Zhengfei, was arrested in Canada in December at the request of the United States on charges of bank and wire fraud in violation of U.S. sanctions against Iran. She denies wrongdoing. U.S. sanctions forced ZTE to stop most business between April and July last year after Commerce Department officials said it broke a pact and was caught illegally shipping U.S.-origin goods to Iran and North Korea. The sanctions were lifted after ZTE paid $1.4 billion in penalties. In Beijing, the Foreign Ministry referred questions to the two companies, but said Chinese firms were required to abide by local laws. “At the same time, we ask that governments in countries where they are based provide a just, fair, and nondiscriminatory environment,” its spokesman, Geng Shuang, told a news briefing on Thursday. Chinese telecoms equipment makers have also been facing mounting scrutiny, led by the United States, amid worries Beijing could use their equipment for spying. The companies, however, have said the concerns are unfounded.<doc-sep>The Massachusetts Institute of Technology cut ties with Chinese technology manufacturers Huawei and ZTE this week after the US launched federal investigations into both companies. According to reports, Chinese technology manufacturers Huawei and ZTE are facing investigations by the United States governments over alleged sanctions violations. Now, in response to the investigations, the prestigious Massachusetts Institute of Technology is cutting ties with the manufacturers. MIT announced the decision to cut ties in a letter to the community that was released on Wednesday.<doc-sep>
One of the United States’ top universities is cutting ties with Huawei and ZTE . The Massachusetts Institute of Technology (MIT) made the decision to terminate its existing relationships, as well as suspend future ones, with the two Chinese tech giants. The university’s decision comes in light of current federal investigations into the companies over sanctions violations. MIT’s associate provost and vice president for research made the announcement in a letter to faculty on Wednesday. At this time, based on this enhanced review, MIT is not accepting new engagements or renewing existing ones with Huawei and ZTE or their respective subsidiaries due to federal investigations regarding violations of sanction restrictions,” says the letter. “The Institute will revisit collaborations with these entities as circumstances dictate.” In addition to ending its relationships with Huawei and ZTE, certain proposals deemed “elevated-risk” will need special administrative review. These elevated-risks include “projects funded by people or entities from China (including Hong Kong), Russia and Saudi Arabia.” These new requirements also cover work involving MIT faculty or students in these countries as well as projects involving individuals or organizations from these countries. MIT is far from the first university to cut its ties with tech companies in China. According to the South China Morning Post , Stanford University, the University of California, Berkeley and the University of Minnesota have all suspended future research work with Huawei. Tensions between China and the U.S. are running due in part to President Trump’s trade war with the country. Even dating apps like Grindr haven’t been spared from the ramifications. Beyond Trump’s trade war, U.S. intelligence officials have repeatedly accused Huawei and ZTE of spying for the Chinese government. These national security issues have prompted President Trump to ban government use of the two China-based companies’ products. U.S. authorities even conducted a sting operation on Huawei at this year’s CES after the company allegedly attempting to steal an American company’s technology. That very same month, the U.S. also charged the Huawei with attempting to steal trade secrets from T-Mobile. On top of all that, as previously mentioned, both Huawei and ZTE have been under federal investigations for sanctions violations. Earlier this year, Huawei, along with top executives, were charged with fraud and money laundering related to violations of U.S. sanctions on Iran. As part of a plea deal, ZTE faced a 7-year supplier ban in the U.S. after being charged with violating sanctions on Iran and North Korea. Interestingly enough, Trump intervened to end the ban after the company said the ban would effectively kill its business. The relationship between the U.S. government and these Chinese tech companies doesn’t look to get better anytime soon either. In response to its products being banned in the U.S., Huawei recently announced that it will sue the U.S. government . Don’t be surprised if more universities join MIT and the other school’s that have decided to stop working with Huawei, ZTE, and other Chinese-based companies.