UK approval of Huawei equipment could sway more European states against US, analysts say
- Huawei invested more than 2 billion pounds in the British economy between 2013 and 2017
UK approval of Huawei Technologies equipment for the country's 5G mobile networks would be a significant step for the Chinese company in winning over other European countries, which in recent months have closely scrutinised its technology over national security concerns raised by the US, according to analysts.
The UK National Cyber Security Centre (NCSC) has determined that it is possible to “limit the risks from using Huawei” in 5G networks, according to a Financial Times report on Monday that cited anonymous sources. The report comes amid US pressure on its allies to exclude Huawei as a supplier for upcoming 5G mobile networks based on national security concerns.
If the UK publicly endorses Huawei and does not ban the use of the company’s 5G equipment, it would be at odds with other members of the Five Eyes intelligence alliance, which also comprises the US, Australia, Canada and New Zealand.
“It highlights the competing economic and security imperatives at play when it comes to deciding whether to allow Chinese tech companies to dominate key sectors,” said Adam Ni, a China researcher at Macquarie University in Sydney, Australia. “UK’s position is a setback for US efforts to isolate Huawei internationally.”
A NCSC spokesman said in an emailed statement that it was “committed to the security of UK networks” and that it had a “unique oversight and understanding of Huawei engineering and cybersecurity”.
“The NCSC has concerns around Huawei’s engineering and security capabilities. We have set out the improvements we expect the company to make,” the NCSC spokesman said.
NCSC declined to comment on the Financial Times report.
Huawei has traditionally worked closely with the UK. In 2010, the Shenzhen-based company opened a cybersecurity centre in Britain, allowing its equipment and software to be tested by the UK government for possible risks. The Chinese company signed a procurement commitment of 3 billion pounds (US$3.8 billion) with the UK last February, after investing more than 2 billion pounds in the British economy between 2013 and 2017.
UK approval of Huawei would also signal to other European countries that there is not enough compelling evidence from US intelligence to warrant a ban on the company, according to John Delaney, who heads market research firm IDC’s European mobility team.
“Generally speaking, as part of the Five Eyes, the UK is privy to more information from US intelligence than is typically the case with other European countries,” said Delaney.
“And if the UK doesn’t think that what it has seen from the US rings an alarm bell to impose a ban, then it increases the likelihood that countries like Germany are likely to follow suit.”
German business daily Handelsblatt reported earlier this month that the German government wanted to avoid banning Huawei’s products from its 5G networks, citing unnamed government sources.
In Europe, Poland and the Czech Republic have sided with US calls to exclude Huawei’s 5G products from telecommunications networks. Polish internal affairs minister Joachim Brudzinski called for the European Union and Nato to take a “join stance” on Huawei after one of the company’s employees was arrested in Poland on suspicion of espionage.
The Czech Republic’s cybersecurity agency in December warned of potential national security threats in using Huawei’s equipment – a stance opposite that of Czech President Milos Zeman, an outspoken supporter of Huawei.
“The Western security agencies seem to be dancing to slightly different tunes. While they all recognise a potential security risk, the US approach seems to be getting entangled with issues of trade and [intellectual property rights],” said John Ure, director of the Telecommunications Research Project at the University of Hong Kong and author of Telecommunications Development in Asia.
“By contrast the Europeans seem to be more concerned with avoiding a 5G stalemate and finding ways to avoid a general trade war.”
In light of Brexit, the UK would also be keen to establish stronger ties with China as an economic partner and thus would be likely to want to continue having close ties with Huawei, said David de Cremer, a management and organisations professor at the National University of Singapore, who has written extensively about Huawei.
But while British approval would be a significant win for Huawei, which has vehemently denied that its equipment is being used for Chinese intelligence purposes, it will still face strong opposition from the US, according to Kenny Liew, a telecommunications, media and technology analyst at Fitch Solutions.
“The conclusion would be most important to countries which have to balance relations between both US and China, and those which have been unwilling to ban Huawei mainly for the cost-effectiveness and proven reliability that it offers,” said Liew.
“US efforts will definitely face a setback as a result, but we don’t expect it to slow down in pressuring its other allies to reconsider Huawei.”
