Published: Fri, February 08, 2019
Finance | By Loren Pratt

Trump tipped to ban Chinese telecom equipment ahead of MWC

Trump tipped to ban Chinese telecom equipment ahead of MWC

Huawei has reportedly said it would take three to five years and a $2 billion investment to resolve the security issues found in a British report last year.

The Chinese firm, which has earmarked $2bn (£1.5bn) for the process, outlined the timetable in a letter to MPs.

Huawei, the world's biggest producer of telecoms equipment, faces intense scrutiny in the West over its relationship with the Chinese government and US -led allegations that its equipment could be used by Beijing for spying. The two Chinese mobile giants have been accused by the USA government of posing national security risks.

'Enhancing our software engineering capabilities is like replacing components on a high-speed train in motion.

The new legislation was a last-minute addition by the government to a wide-ranging corporate law and would have required telecom operators to seek formal approval for the use of certain kinds of equipment considered to be particularly sensitive for spying or sabotage risks.

As contracts for the installation of 5G networks are in the works, the White House is looking to send a message that security must not be compromised for the next generation of wireless connectivity.

Ding reportedly added that Huawei "has never and will never" use its equipment for Chinese state espionage.

"We would like to reiterate that Huawei has never received any such requests from the Chinese government and in the event we did ... we would categorically refuse to comply with it. Huawei is a closely watched company".

'Were Huawei ever to engage in malicious behaviour, it would not go unnoticed - and it would certainly destroy our business.

The issue with shunning Huawei's equipment is that it's relatively cheap, so mobile carriers would probably find their 5G buildouts getting more expensive.

USA charges of stealing technology and violating sanctions on Iran have since been issued against the company, sparking new tensions in relations between the United States and China.

United States justice officials last month unveiled sweeping charges against Huawei, including against a top executive whose arrest in Canada on a United States warrant ratcheted up tensions between the two superpowers.

Huawei is a key partner for many United Kingdom telcos and is subject to monitoring by the Banbury-based Huawei Cyber Security Evaluation Centre (HCSEC), a specialist unit formed in 2010 to monitor the use of the equipment in the UK's network infrastructure.

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