The UK government has recently decided to allow Huawei to build parts of its non-core 5G network. The approval comes with a number of conditions: Huawei’s share of the market will be capped at 35% and it will not be allowed to build its 5G network at sensitive locations, such as near military bases or nuclear sites. Such conditions are best viewed in the context of security concerns over Huawei, which the US has alleged is a state-sponsored company engaged in espionage on US government officials and US companies in connection with the Chinese government. The US government banned companies from using Huawei networking equipment in 2012, and has gone so far as to add it to the US Department of Commerce’s Bureau of Industry and Security Entity List in 2019, following an executive order from President Donald Trump. The 2019 order effectively bans Huawei from US communications networks, and bans US companies from doing business with Huawei. Other countries have imposed similar bans on Huawei, including Australia, New Zealand, Japan, and Taiwan. In a sense, the UK government approval may also be viewed as a ban on Huawei constructing the UK’s core 5G network, and confining it to building its periphery networks.
Many Canadians are familiar with Huawei, the Chinese technology giant, due to Meng Wanzhou’s notable detention in Canada and potential extradition to the US for violating US sanctions on Iran. However, some may not understand the scope of the Chinese company. Huawei had approximately US$93 billion in sales in 2018, which puts it on a par with Microsoft, one of the biggest and most successful companies in the world. Huawei is the largest telecommunications equipment manufacturer in the world, and the world’s second-largest manufacturer of smartphones, after Samsung. Huawei has an estimated 180,000 employees worldwide, and at its massive main campus in Shenzhen, China alone, there are 60,000 employees.
With all this being said, the most obvious question is whether countries should entrust their telecommunications networks to Huawei? Other questions also arise. Is there any basis to the allegations that Huawei is a state-sponsored entity engaged in high-level espionage? What types of regulations should be in place to defend against potential incursions on national security? Did the UK get it right? How can allegations of international espionage be reconciled with the fact that Huawei is one of the most successful technology companies in the world? Are Huawei’s actions different than those of its US counterparts, such as Apple, Microsoft, Facebook and Google, who all have massive data collection networks? Is the fact that Huawei is a Chinese company rather than a North American or European company stoking fears over its potential espionage?
It will be very interesting to see what information comes to light in the coming months, and years, over this mysterious and pervasive Chinese company. If you are interested in reading about the recent approval, or about Huawei, here are the sources I used for this post:
1) https://www.cnet.com/news/uk-gives-huawei-green-light-to-build-countrys-non-core-5g-network/
2) https://www.businessinsider.com/huawei-meng-wanzhou-trump-china-trade-war-2018-12#the-company-has-tried-to-expand-into-the-us-market-but-a-possible-distribution-deal-with-att-fell-through-in-january-2018-the-company-hasnt-yet-found-another-carrier-wanting-to-partner-which-may-be-in-part-because-of-pressure-from-us-officials-who-distrust-chinese-companies-this-has-limited-huaweis-footprint-in-america-10
3) https://www.statista.com/chart/17528/countries-which-have-banned-huawei-products/