The Chinese telecommunications company Huawei is under scrutiny around the globe over concerns that its close ties with the Chinese government present national security threats to the U.S., Europe and allied countries.
Huawei, which denies all the allegations against it, is “the world’s biggest supplier of telecoms gear” and has plans to “dominate the market” for the next generation of wireless communications, called 5G. But its hopes are threatened by governments around the world, which are restricting the company’s prospects and even banning it from operating in some areas.
No Chinese company is fully independent of its government, which reserves the right to require companies to assist with intelligence gathering. Huawei is even more closely tied to the government than many Chinese firms: Its founder, Ren Zhengfei, is a former technologist in the People’s Liberation Army.
As far back as 2003, the company was accused of stealing intellectual property, including from U.S.-based network hardware maker Cisco. The companies settled out of court, but Huawei has been accused of stealing other firms’ intellectual property and violating international economic sanctions.
Where it went wrong
In February 2018, the heads of six U.S. intelligence agencies told a Senate committee they didn’t trust Huawei or its rival ZTE, which is also based in China, and would recommend Americans not use the company’s smartphones or other equipment.
On July 17, the intelligence chiefs of the U.S., Canada, the U.K., Australia and New Zealand reportedly met in person, in part to make plans to publicise their concerns about allowing Huawei equipment to operate in their countries and governments.
Two days later, the United Kingdom’s government-run lab specifically set up to evalute Huawei hardware and software reported finding “shortcomings” in Huawei’s engineering processes that raised security risks. After a big push from the British government, Huawei agreed to spend US$2 billion to address those problems.
In mid-August, the U.S. Congress passed, and President Donald Trump signed, a law specifically prohibiting U.S. government agencies from purchasing or using telecommunications and surveillance products from Chinese companies like ZTE and Huawei – both of which are named in the law.
A week later, Australia announced a similar ban, barring firms “who are likely to be subject to extrajudicial directions from a foreign government” from supplying equipment for its nationwide 5G rollout. The announcement did not specifically name Huawei or ZTE, but Huawei criticized the decision as political and based in “ideological prejudices,” rather than actual security concerns.
In late November, New Zealand’s intelligence agency barred Huawei from participating in its 5G development, citing “significant national security risks.”
The high-profile arrest
In Canada, where telecommunications companies use Huawei equipment extensively, the government is still discussing a possible ban. But the country did arrest Huawei’s chief financial officer, Meng Wangzhou, who is also the daughter of the company’s founder, as a result of a U.S. allegation that she violated international sanctions against Iran. China threatened Canada with “severe consequences” if Meng was not released immediately. She is now out on bail with extradition proceedings pending.
Days after Meng’s arrest, the private company that dominates U.K. telecommunications, BT Group, announced it was removing Huawei equipment from its existing mobile networks, and would not use Huawei technology in future mobile systems.
Tensions over evidence
All these countries and companies are expressing concern that China’s government could exploit Huawei’s technology to spy on them, stealing corporate or government or military secrets.
The focus of many security agencies and countries on Huawei’s involvement in 5G systems raises the stakes, too: The next generation of wireless technology is expected to fuel even more connectivity in the “internet of things,” linking smart cars, smart homes and smart cities together.
Billions of devices will be involved, all communicating with each other, forming what could become a surveillance web over much of the planet, and exponentially expanding the number of potential targets for spying. As governments seek to ensure 5G is secure and trusted around the world, Huawei may find its prospects limited by its links to the Chinese government.
Frank J. Cilluffo is affiliated with the Center for the Study of the Presidency & Congress, the National Consortium for Advanced Policing, BlackHorse Solutions, Nisos and CyberGym, NYC. He also serves on the Homeland Security Advisory Council (DHS) and was appointed to the Cyberspace Solarium Commission.
Sharon L. Cardash does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
