Huawei could feel chill wind in Europe if UK decides to block China giant from UK networks

British media reported that the National Cyber Security Centre of GCHQ has decided that US sanctions against Huawei have had a ‘severe’ impact

Reading Time:4 minutes

Report is expected to be submitted to UK prime minster this week, which could pave way for a policy shift that bans purchase of any new Huawei equipment. Photo: AFP.

Published: 9:53am, 6 Jul 2020Updated: 11:36pm, 6 Jul 2020

Britain’s reported plan to phase out Huawei Technologies from its mobile networks from this year raises fresh questions about the Chinese telecom giant’s business prospects in Europe, with Germany set to decide on its rules for 5G network roll-outs after the summer break.

Despite building a reputation for supplying low cost, high quality equipment that has helped it take a lead in new 5G network technology, Huawei is facing a raft of US trade restrictions that many European analysts say could pose a threat to its ability to use only trustworthy components.

In London, a decade of building warm business ties with China has been replaced with rising suspicion and scepticism, most recently culminating in the diplomatic stand-off over Beijing’s recent imposition of a national security law on Hong Kong, a former British colony.

Even though Prime Minister Boris Johnson has sought to reassure the Chinese government of Britain’s continued interest in having close ties with the world’s second-biggest economy, the Parliament – controlled by Johnson’s Conservative Party – has threatened to derail any government plan that would allow Huawei into Britain’s 5G networks.

British media reported over the weekend that the National Cyber Security Centre of GCHQ – the UK’s top intelligence body – has decided that US sanctions barring Huawei from using technology relying on American intellectual property have had a “severe” impact on the firm, as it would now have to turn to “untrusted” equipment.

The report is expected to be submitted to Johnson this week, and ministers on the National Security Council, led by the prime minister, will be asked to approve a policy shift in the next two weeks to ban the purchase of any new Huawei equipment by the end of this year.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x