What’s next for Huawei as New Zealand becomes latest US ally to reject 5G bid?
- Europe is now key for Huawei’s overseas roll-out of 5G network equipment, according to a Jefferies report
- Huawei has already signed 22 5G equipment supply contracts
Huawei Technologies, the world’s largest telecommunications equipment supplier, could be facing tough prospects in its overseas markets amid reports that the United States has put pressure on its closest allies to block the Chinese company from taking part in 5G mobile network projects because of security concerns.
Questions about the security of Huawei’s equipment re-emerged this week after Spark, the biggest telecoms network operator in New Zealand, said in a statement on Wednesday that the country’s intelligence agency blocked its proposal to use the Chinese firm’s equipment for its 5G development plans.
National security was also the reason behind the decision made by the government of neighbouring Australia in August to bar Shenzhen-based Huawei and ZTE Corp from supplying 5G equipment to the country’s telecoms carriers.
New Zealand’s ban on Huawei network equipment followed last week’s Wall Street Journal report, which cited anonymous sources, about the US government exerting increased pressure on foreign allies to ditch Huawei gear that it considered a threat to cybersecurity.
Washington’s campaign on strong telecoms safeguards appear to focus on the countries belonging to the intelligence alliance known as the Five Eyes, which comprise the US, Canada, the United Kingdom, Australia and New Zealand. Three of those five allies have now made a stand against Huawei.
