Advertisement
Advertisement
Huawei
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
Liang Hua (left), chairman of Huawei's board of directors, and Eric Li (right), president of Huawei Technologies Canada, after a media round table event in Toronto on Thursday. Photo: AP

Huawei would refuse if China requested ‘back doors’ into foreign wireless networks, says chairman Liang Hua

  • Liang Hua says Huawei has obtained a legal opinion that it is not obliged to help the Chinese government secure ‘back doors’ into foreign telecom networks
  • He said Huawei plans to expand its Canadian workforce by 20 per cent and increase research and development investment, despite arrest of Meng Wanzhou
Huawei

Huawei Technologies would deny any Chinese government request to open up “back doors” in foreign telecommunications networks because they aren’t legally obliged to do so, the company’s chairman said.

Liang Hua, speaking to reporters in Toronto on Thursday, said the company had received an independent legal opinion about its obligations under Chinese law and said there is nothing forcing companies to create what he called “back doors” in networks.

This was an apparent reference to hidden access points that could potentially allow Chinese spies to access information. Western powers fear a 2017 security law could compel Chinese firms to provide such access.

But Liang said Huawei had never received any such request, but would refuse it if they did.

Liang Hua, centre, chairman of Huawei's board of directors leaves a media event in Toronto on Thursday. Photo: AP

“We will not execute the request” because it wouldn’t be lawful, he said through a translator, stressing that he leads “an independent business organisation” aimed at serving its customers. “We have kept a good track record on cyber-security.”

His comments, and an announcement of increased spending in Canada, come as the country and several of its peers weigh whether to restrict or ban Huawei from 5G networks.

The company’s chief financial officer, Sabrina Meng Wanzhou, meanwhile, is under house arrest in Vancouver and faces potential extradition to the US, after being arrested by Canadian police at the request of the US on December 1.

Liang said the company was committed to increasing investment in Canada despite Meng’s arrest.

Huawei announced plans to expand its Canadian workforce by 20 per cent and increase research and development investment by 15 per cent this year.

“We won’t change our approach on R&D investment. We’ll continue to step up our investment in R&D in Canada,” Liang said.

Meng, who also is the daughter of Huawei founder Ren Zhengfei, has been charged with bank and wire fraud in violation of American sanctions against Iran. She was arrested as she changed planes in Vancouver, on her way to Mexico.

Liang said the arrest of an executive on such charges was “not common and rare”. He said that the current relationship between China and Canada was “not ideal”.

He downplayed some of the geopolitical tensions, saying that difficulties are normal in business and that the firm would continue to invest in Canada regardless of the 5G decision. However, he said he believes Meng is innocent and that Canada will keep politics out of its decision.

“At the end of the day, we hope decisions on 5G can be made based on technology and not on other factors,” he said. “At any time, at any point, it is normal for us, for a company to be faced with challenges and difficulties.”

The US, New Zealand and Australia have all restricted or banned Huawei from 5G networks. The UK said this week no decision has been made, but that the country “will not compromise on the improvements we need to see from Huawei.” Germany has ruled out a full Huawei ban.

Despite the tensions, the chairman predicted revenue growth for the company – to US$125.4 billion in 2019, up from US$108.5 billion last year. Revenue in Canada totalled US$420 million last year, including US$270 million from telecom companies like BCE Inc and Telus Corp, and US$150 million from consumer products.

He said the company “is just an equipment vendor” to those Canadian telecoms, and doesn’t own networks or Canadian customer data. He said he wants all providers to be treated equally in a “fair and just manner.” Cyber-security and privacy protection are challenges for the entire industry and not just one company, he said.

The company won’t abandon Canada even if it is banned from 5G networks, Liang said. “There are still customers that will choose us. In that case, we will continue to provide good service to customers,” he said.

The US unveiled allegations against Huawei, two affiliates and Meng over alleged bank and wire fraud related to business in Iran, along with allegations that the company stole trade secrets from T-Mobile US Inc. Liang said the dispute with T-Mobile had been resolved in civil proceedings and that a “defendant is innocent until proven guilty.”

Meng is due in court next month, though her extradition fight could last for years. “I cannot say the US charges against Ms Meng are not politically driven,” Liang said. “I believe she is innocent and I hope the Canadian justice system will bring justice back to her.”

Liang cited comments made by former Canadian ambassador to China, John McCallum, who said Meng had a good case to avoid extradition. Trudeau demanded McCallum’s resignation days later.

Post