Business Essentials for Professionals


UK Allows Partial Huawei Participation In 5G Despite US Warnings

UK Allows Partial Huawei Participation In 5G Despite US Warnings
The United Kingdom chose to ignore warnings from the United States about Chinese telecom equipment manufacturing giant Huawei which is expected to raise tensions between the two traditional partners, according to reports in the media.
According to reports, UK Prime Minister Theresa May has decided of not excluding the Chinese firm from the building of the 5G technology network in the country, with some restrictions, despite a leaked news report about warnings from the US CIA where it was alleged that Huawei is funded with money from branches of China's military and intelligence.
The reports, first published in the Telegraph, claimed that "the National Security Council, which is chaired by the Prime Minister, agreed on Tuesday to allow Huawei limited access to help build parts of the network such as antennas and other 'noncore' infrastructure."
While those supporting the decision of the UK government would argue that the Chinese firm has not been given a full 'green-light' as it has been decided to be kept out of 'core' parts of the U.K. 5g network and instead has been granted a more general inclusion. However analysts fear that such arguments would not suffice to satisfy the US.
According to a report published in Times earlier this month quoting a senior U.S. cybersecurity official claimed that the US had "warned that Britain will harm economic and military co-operation between the countries if it uses Huawei for its next-generation 5G mobile network." The US official Robert Strayer stressed that "the U.S. believes that applying these standards rigorously [will] 'lead inevitably to the banning of Huawei'."
UK had issued mixed responses to the question of Huawei’s inclusion in the construction of the 5G network in the country. Many are not surprised by the decision of the UK government as it is in line with the kind of messages that were being circulated by British authorities in relation to mitigation of the risk and segmented networking – especially those that had emerged from the National Cyber Security Centre of the UK. However there were some who believed that a stricter stand would have been taken by the UK government because of high risk assessment of security issues with Huawei's telecom technology and the CIA news.
Some analysts see economics playing a role behind the decision of the UK government, to a greater extent than political or security considerations. The country would have had to face billions of pounds in additional costs and delay in the roll out of 5G technology in the country by the exclusion of Huawei from the process at this late stage.
Huawei "has received funding from branches of Beijing’s state security apparatus... American intelligence shown to Britain says that Huawei has taken money from the People’s Liberation Army, China’s National Security Commission and a third branch of the Chinese state intelligence network," the Times had reported on Sunday.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc