A report from the UK Parliament concluded that there was “clear evidence of collusion” between Huawei and the Chinese Communist Party. As a result, lawmakers plan to require Huawei devices to be removed from the 5G network by 2025.
A direct link between Huawei and the Communist Party
This conclusion follows several months of investigation and testimony, particularly from telecommunications and cybersecurity experts. Andre Pienaar, founder of C5 Capital, confirmed that the Chinese government had partially financed Huawei. This was confirmed by an article in the Wall Street Journal published in December 2019. The report also states that the company “is engaged in a variety of intelligence, security and intellectual property activities”.
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British politicians also fear the consequences of China’s 2017 law, which obliges the country’s companies to work with the government, particularly by submitting sensitive data to them. although Huawei has always said that it would never engage in such practices.
Direct consequences for Huawei’s 5G device
So far, the UK government’s recommendations have been as follows: The country’s operators won’t be able to purchase new 5G devices provided by the Chinese giant until the end of the year and will be forced to withdraw them by the end of the year. 2027. However, the report could play a crucial role in pushing that two-year deadline to 2025, if relations with China continue to deteriorate or if the United States and other allies so request.
“It is clear that Huawei maintains close ties with the Chinese state and the Chinese Communist Party, despite statements to the contrary,” the report concluded. He also claims Beijing threatened to cut funding for the UK nuclear program if Huawei’s equipment were removed from the UK’s 5G network.
The rest of Europe could follow
Huawei’s response was quick and the company found the claims false: “This report is not believable as it is based on opinion rather than fact. We are sure that people will see through these baseless allegations of collusion and instead will remember what Huawei has done for the UK over the past 20 years. “
The reaction of the tech giant is understandable; This investigation could have repercussions well beyond the UK and reach the rest of Europe, while Huawei has largely invested in the use of 5G in the old continent and beyond that risks losing the Indian market. In France, the ringtone for Huawei devices is similar, as a law was passed in 2019 that made it very difficult for operators to buy and was contested by Bouygues.
2020 is definitely a complicated year for the company. Added to this is the loss of the Android license and the discontinuation of the delivery of electronic components by Samsung.