Throughout much of 2019, the U.S. government warned allies not to use Huawei’s networking equipment to build out their 5G networks. Countries like Japan and Australia heeded the warning while Germany and Britain did not. The British had a difficult time reaching a decision and Prime Minister Boris Johnson came to the conclusion that there weren’t any other choices except to use Huawei parts for its 5G network. After all, the company is about one and a half to two years ahead of its rivals when it comes to technology. And thanks to its connection with the Bank of China, the company offers its customers generous financing terms. So Johnson agreed that Huawei gear could be used to make up as much as 35% of the non-core parts for the country’s 5G networks.
The U.S. government does not allow carriers to use Huawei’s 5G networking gear for their networks because of the company’s perceived ties with the communist Chinese government (which the manufacturer continues to deny). Huawei is the world’s leading supplier of networking equipment and currently is the largest smartphone manufacturer in the world. That is an amazing achievement considering that the firm is not allowed to access its U.S. supply chain and is not permitted to license Google Mobile Services.
Meanwhile, Prime Minister Johnson has changed his mind after the U.S. pleaded with him to reconsider. The Telegraph is reporting that the British will start removing Huawei’s equipment from their 5G networks as soon as this year. Plans are being drawn up to stop the installation of Huawei equipment in Britains’s 5G networks starting in six months; at the same time, the British will start removing the Huawei parts that have already been installed.
A report is expected to be presented to Prime Minister Johnson this week that will note how the U.S. plan to block major global foundries from shipping advanced chips to Huawei could force the latter to use components that might not be so trustworthy as far as Britain is concerned. The Tories, known as the center-right party in England, is pressuring the prime minister to take a tougher stance against the Chinese company.
Huawei says that there is no reason why the British can’t trust it. A spokesman said, “Huawei is the most scrutinized vendor in the world and we firmly believe our unrivaled transparency in the UK means we can continue to be trusted to play a part in Britain’s gigabit upgrade. It’s important to focus on facts and not to speculate at this time.” But the British are worried that any talks with the U.S. and other allies over intelligence matters might not be safe if Huawei parts aren’t removed from Britain’s next-gen wireless technology.
