China’s biggest tech firm, Huawei Technologies, has risen to global prominence as a leader in 5G, the much ballyhooed, next-generation wireless technology. It has also become a major target for the US, which has been trying to convince its allies to ban Huawei equipment from their national networks on spying concerns.
In May 2022, Canada became the latest country to sign on to the American effort. Underlying the wrangling is the question of which country will take the lead in the nascent, "everything-connected" era, and who gets left behind.
WHY DOES THE US HAVE AN ISSUE WITH HUAWEI?
US government officials say Huawei is dangerous in part because it could use its growing share of the telecom equipment market to spy for the Chinese government.
Already in 2012, a report by the US House Intelligence Committee tagged Huawei and ZTE as potential security threats; the Federal Communications Commission in 2020 designated the companies as such and ordered US carriers to remove equipment made by them from their networks.
Concerns about Huawei drove the 2018 decision by then-President Donald Trump to block a hostile takeover bid from Broadcom, based at the time in Singapore, for the US chipmaker Communal. The deal could have curtailed American investments in chip and wireless technologies and handed global leadership to Huawei.
Such concerns have grown as carriers spend billions of dollars on new 5G networks, which will collect data and enable services on an unparalleled scale.
HOW IMPORTANT IS HUAWEI?
In just more than three decades it has grown from an electronics reseller into one of the world’s biggest private companies, with leading positions in telecommunications gear, smartphones, cloud computing and cybersecurity, and substantial operations in Asia, Europe and Africa.
Huawei generated 850 billion yuan (US$130 billion) in sales in 2019 - more than Boeing. It has plowed billions of dollars into 5G and broke into the top 10 recipients of US patents last year. It has helped build 5G networks in more than 10 countries and was set to do the same in another 20 in 2020.
US sanctions spooked some Huawei customers and suppliers globally, while Chinese consumers and carriers rallied to its side.
WHY IS ITS EQUIPMENT A SECURITY ISSUE?
The US government — like the Chinese and others — is wary of employing foreign technology in vital communications for fear that manufacturers could install hidden “backdoors” for spies to access sensitive data, or that the companies themselves would hand it over to their home governments.
The 5G networks are of particular concern because they will go beyond making smartphone downloads faster. They also will enable new technologies like self-driving cars and the Internet of Things.
UK-based carrier Vodafone Group was said to have found and fixed backdoors on Huawei equipment used in its Italian business in 2011 and 2012. While it is hard to know if those vulnerabilities were nefarious or accidental, the revelation dealt a blow to Huawei’s reputation.
WHO'S USING HUAWEI AND WHO'S NOT?
Japan and Australia joined the US boycott early. The UK prohibited its telecom operators from buying Huawei equipment starting in 2021, and equipment already installed must be removed by 2027.
Sweden banned Huawei and ZTE from its 5G network in October 2020. Countries such as India and Vietnam are considered unlikely to use Huawei. But the company has won 5G customers in Russia, the Middle East, Africa and Asia, including the Philippines and Thailand.
Its equipment tends to be less expensive than alternatives from Nokia and Ericsson and is often higher quality.
In Malaysia, the prime minister has said his country will use "as much as possible". South African President Cyril Ramaphosa has also defended using Huawei equipment.
"We cannot afford to have our economy to be held back because of this fight," he said in 2019.
WHAT'S GOING ON ELSEWHERE?
Norway decided against a ban, leaving the choice to individual companies; so far two have gone with Ericsson.
Huawei lost two big contracts in Singapore in 2020 but still has a foothold in the market. Brazil has said it is not excluding anyone from bidding.
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2022-05-20 03:28:00Z
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