Chinese court rules against Samsung, again

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Rep. Mike ConawayKenneth (Mike) Michael ConawayTop intel Dem: Trump Jr. refused to answer questions about Trump Tower discussions with father House panel interviews Podesta after Trump dossier revelation Texas lawmaker says GOP colleague should resign over lewd photo MORE (R-Texas) announced the bill on Friday, drawing renewed attention to concerns in Congress about the firms and their relationship with the Chinese government.

But in a letter seen by Reuters, politicians scuppered the deal citing security concerns.

Unfortunately for Samsung, a Chinese court in Shenzhen has ruled that the company did indeed violate Huawei's patents. Their reason, USA lawmakers expressed concerned about potential ties between Huawei and the Chinese government. Although the bill targets telecommunication equipment manufactured by both Huawei and ZTE, it could have a ripple effect on their smartphone business.

In 2012, Huawei and ZTE Corp (000063.SZ) (0763.HK) were the subject of a US investigation into whether their equipment provided an opportunity for foreign espionage and threatened critical USA infrastructure - a link that Huawei has consistently denied.

It points to several reports on the potential threat the Chinese manufacturers pose to national security.

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Conaway described that report as "incriminating" on Friday.

AT&T has decided not to carry phones by Chinese smartphone maker Huaawei after concerns about security.

AT&T walked away from the deal just a day before an anticipated announcement on Tuesday by Huawei at a Las Vegas technology trade show, according to the Wall Street Journal.

On Tuesday, the Wall Street Journal reported that U.S. -based telecommunications company AT&T has made a decision to back away from a deal to sell Huawei's smartphones in the U.S. Huawei had been expected to announce the deal at CES that day.

But Dr Edward Tse, founder and chief executive of the Gao Feng Advisory Company, argued that most investment from China is not by state-owned enterprises, but from entrepreneurial private sector companies, led by shareholders. The Commerce Department is also said to be investigating Huawei's dealings with sanctioned nations.

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