• Friday, May 03, 2024
businessday logo

BusinessDay

Huawei plans investment shift to UK amid US ban on its 5G network

Huawei

Despite restrictions in the United States on Huawei’s 5G network equipment, and controversial allegations that Chinese manufacturers are spying on the West, the United Kingdom’s National Cyber Security Centre (NCSC) have determined that Huawei’s network equipment are not a threat to security, adding that any potential risk posed from using the company’s equipment can be easily mitigated.

According to a Financial Times report, the NCSC has ruled out a blanket ban, but hasn’t formally settled on what to do in response to the US’s persuasion to ban the use of Huawei equipment.

Huawei’s founder, Ren Zhengfei, in an interview with the BBC, stated categorically that “the US cannot crush Huawei”. In a previous report by the Bloomberg, Ren, had stated that despite the potential impact of the US plot on the business, he was confident Huawei’s revenue would grow to $125 billion in 2019 from more than $100 billion last year.

Speaking on the NCSC’s findings regarding the safety of Huawei’s equipment, Ren reiterated the fact that many of the UK’s mobile companies, including Vodafone, EE and Three, are working with Huawei to develop their 5G networks.

Ren, added that Huawei “…will invest even more in the UK. Because if the US doesn’t trust us, then we will shift our investment from the US to the UK on an even bigger scale.” Huawei is considered a global leader when it comes to telecoms equipment, and is one of only a few true suppliers of 5G. Many have speculated that the motivation behind the United States allegations are both commercial and geopolitical, given that the United States and China are locked in a trade dispute that has disrupted the flow of hundreds of billions of dollars of goods.

Reuters reported last year that President Donald Trump was considering an executive order for 2019 to declare a national emergency that would bar U.S. companies from using telecommunications equipment made by China’s Huawei and ZTE

Huawei maintains its stand on non-involvement in allegations of spying, stating that it would not be in the company’s interest to do so, and would cause the company to lose its image and the current position in the international market.

Huawei recorded a sales revenues of up to US$ 108.5 billion in 2018.

 

Jumoke Akiyode-Lawanson with wired reports