Huawei-UK Relationship; Too Tight To Break?

Huawei-UK Relationship; Too Tight To Break?

 

 

Security fears have moved many western countries, Australia and the United States among them, to ban the use of Huawei 5G equipment to push the recent 5G technology advancement.

New Zealand’s Spark was the most recent to turn its back against the Shenzhen-based company, citing ‘significant security risks’ – a euphemism for fears that Beijing might use the technology to spy on the country or disrupt its communications in the future- as an excuse.

This makes three of the Five Eye Intelligence alliance that has now acted against Huawei equipment. Canada, the other member is carrying out a security review of its own

 

That means three members of the Five Eyes intelligence alliance have now acted against the Shenzhen-based company. And one other member, Canada, is carrying out a security review of its own. These facts leave the UK alone as the only member still holding out on making a decision, but for how long?

 

‘There are two factors at play here: 5G will be connected to everything as we go to the internet-of-things,’ said Ewan Lawson, from UK defence think tank Rusi.

ALSO READ: New Zealand Spy Agency Blocks Use of Huawei Products Over Security Concerns

‘And concerns about foreign-sourced hardware were less intense than they are now.’

 

For its part, Huawei has said: ‘[We are] aware of Spark’s statement and we are looking into the situation.

 

‘As a leading global supplier of telecoms equipment, we remain committed to developing trusted and secure solutions for our customers.’

 

The government argues not.

 

‘This government and British telecoms operators work with Huawei at home and abroad to ensure the UK can continue to benefit from new technology while managing cyber-security risks,’ a Cabinet Office spokeswoman said.

 

That work includes a facility nicknamed the Cell, in Banbury, Oxfordshire, where staff employed by Huawei but answering to GCHQ hunt for security flaws in the company’s products.

 

It has not uncovered evidence of hidden backdoors or other deliberate attempts of subterfuge. But its last report did identify shortcomings that led it to warn that it could offer only ‘limited assurance’ that the company posed no threat.

 

The UK government is thought to have made a veiled threat last month when it wrote to telecoms companies warning that a review of their infrastructure could lead to ‘changes in the current rules’ that should be taken into account during procurement decisions’.

 

Huawei was not mentioned by name, but the Financial Times – which revealed the letter’s existence – said some industry executives interpreted it to mean a ban was still possible.

 

But others have their doubts, noting that other political factors are at play.

ALSO READ: US Restrict Trade With Chinese Chip Maker Over Security Concerns

‘The letter did go out but the issue remains that in the absence of any definitive evidence of a problem, an unspecific security risk has to be weighed against trade opportunities,’ said Mr. Lawson.

 

‘If Huawei was banned, we don’t know the extent to which China might well refuse to do business with us in other fields – and the timing for that would not be great with so much attention on the potential economic impacts of Brexit.’

 

How strong are Huawei’s existing UK ties?

Tightly woven into the UK business-scape. Most of the UK’s mobile networks – Vodafone, EE and Three – now work with Huawei to prepare their 5G offerings.

Huawei opened its first office in the country in 2001 and have been used by major network providers to support their 2G, 3G, and 4G mobile services as well as ‘superfast’ fibre and other types of broadband connections to homes and businesses.

 

Its kit includes mobile phone radio antennas and the routers and switches found in kerbside cabinets.

 

O2’s parent Telefonica has also tested its new equipment elsewhere and signaled that it might use it in the UK.

 

In addition, Huawei says it has developed research and development partnerships with many of the country’s leading academic institutions, including the Universities of Cambridge, Oxford, Cardiff and Imperial College.

 

Its UK board of directors includes Lord Browne, the former chief of BP, and Sir Andrew Cahn, a former high-ranking civil servant.

 

Does Huawei pose a real threat?

The company is keen to portray itself as a private company owned by its employees with no ties to the Chinese government beyond those of a law-abiding taxpayer.

 

It can also lay claim to being one of the biggest spenders on research and development – it invested more than $13.2bn (£10.3bn) last year and has said the figure will be even higher for 2018.

 

But critics like to point out that its media-shy founder, Ren Zhengfei, was a former engineer in the country’s army and joined the Communist Party in 1978.

China has also been accused of being deeply involved in Chinese top businesses, with businesses pledging an unspoken but overriding loyalty to the mission of the communist party above their own interests.

 

‘It’s accepted practice in China that relationships between Chinese companies and the state have to be extremely close,’ said Prof Anthony Glees, director of the Buckingham University Centre for Security and Intelligence Studies.

 

‘Many other countries have said no [to Huawei over 5G].

 

‘We’ve come to the matter late as we have already let them through the door.’

 

Another leading cyber-security expert agreed that Huawei could be co-opted into incapacitating the equipment it had sold.

 

‘The obvious concern with 5G is whether there is a material risk of the Chinese being in a position to run a big denial-of-service attack on Britain in the event of a time of international tension,’ said Ross Anderson, professor of security engineering at the University of Cambridge.

 

‘There is obviously a risk. China plays hardball and we have been hoping in vain for years that it would get nice as it got richer but that hasn’t happened.’

 

For now, Beijing has been careful to not jump into Huawei’s defence for fear of having the action misinterpreted.

 

The Chinese government did warn against ‘protectionism’ when a deal to sell Huawei’s phones in the US fell through and then ‘discriminatory practices’ when Australia banned local networks using its 5G equipment.

 

But Chinese officials are already preoccupied with President Trump’s threats of more trade tariffs and might see any effort to try to help Huawei as likely to backfire.

 

Even so, eyebrows have still been raised by a decision to exclude its founder from a list of 100 key contributors to China’s economy over the past 40 years recently published in the Communist Party’s People’s Daily newspaper.

 

Whether that is because Mr. Ren is viewed as being too close or not close enough to the government is unclear.

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