The US Intelligence Committee report pointed out that Huawei and ZTE poses threats to national security. Huawei and ZTE are China’s top technology companies, and the world’s leading telecommunications network gear suppliers and mobile phone manufacturers. The panel suggested the government body to avoid cooperation, block any merger and acquisition acts, and exclude supplies in government systems and private firms by the two companies; in addition to an investigation into the companies’ financial relations with the Chinese government. However, there lacked definite evidence to support these claims.

This showcased the role of politics and effects of political relations in business. The report hindered Huawei and ZTE’s ability to gain market share in America, as well as in rest of the world, where the Australian government have banned Huawei to bid for supplying to the National Broadband Network due to similar concerns. For their competitors, America’s Cisco and Sweden’s Ericsson, it’s a good opportunity to take on during others’ crises to expand and replace. As the Economist suggested, the industry’s supply chain have become global, and most companies now manufacture all or part of their telecoms equipment and components in China. Thus, “an international effort to develop standards governing the integrity and security of telecoms networks” is the route to tackle security issues.

Articles: http://www.economist.com/blogs/schumpeter/2012/10/chinese-telecoms-firms-america

 http://www.guardian.co.uk/technology/2012/oct/08/china-huawei-zte-security-threat

http://www.vancouversun.com/business/Huawei+pose+security+risk+says/7361528/story.html

HTC’s third quarter report showed that the company’s net profits had fallen 79% from last year’s Q3, where it sold the most number of smartphones in the US. HTC first started in Taiwan working under other phone and computer brands. Its investment into innovations, the development of new, creative products, along with its excellence in engineering, led them to create their own brand dealing with over 140 operators world-wide.

Today, HTC is facing tough competition in the smartphone market. In their launch of the new Windows models to regain market share, they are rivalling against Nokia and Samsung’s Windows Phone 8 products that’s also based on Microsoft operating system, as well as Apple’s popular iPhone 5. Samsung has a bigger marketing budget for strong brand imagery associations, Nokia added the new City Lens feature to enhance its brand performance associations, and Apple is leading the technological innovations. With less budget and support from other products, HTC needs to expand their “good user experience” to more compelling points of difference for an unique brand association in the competitive phone market. The new phone models may not be sufficient for bringing back market shares, perhaps their new move to China’s market – the launch of national marketing campaign with tailored phones to the Chinese, would twist the situation.

Articles: http://www.bbc.co.uk/news/business-19879861

 http://www.bbc.co.uk/news/technology-19650606

http://search.proquest.com/docview/992855029?accountid=14656

Quantitative easing (QE) is an unconventional monetary policy employed by the central bank to stimulate the economy through the increase of money supply with the purchase of financial assets from commercial banks. This is an attempt to reduce the long-term interest rate and encourage spending and lending. The Federal Reserve had released 3 rounds of QE since the financial crises in 2008. QE1 seemed to be acting as a “giant confidence boost”, contributing to market confidence with the rise of inflation and stock prices. However, the effects appeared to wear off in QE2 with decreased growth in stock prices and increased risks in creating asset bubbles.

Views towards QE3 varies widely as it aims to buy more mortgaged-backed securities. Whilst markets welcomes QE3 to boost economic growth and tackle unemployment, there are worries that as it reduces the profits of banks, they would be reluctant to lend money, thus not achieving the desired effects. When implementing policies, governments should consider its impacts on all aspects of the society – does the welfare outweigh the loss? For example, QE harming individuals dependent on bank savings and pensions; as well as placing inflationary pressure and risks of over-heated housing markets in foreign economies.

Referenced Articles: http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/09/13/qe3-what-is-quantitative-easing-and-will-it-help-the-economy/

http://www.ft.com/cms/s/0/80e33384-0c9e-11e2-a73c-00144feabdc0.html#axzz28ktbIUcx