Published: Sun, November 25, 2018
Finance | By Jaime Brady

U.S. gov pressures allies to ditch Huawei equipment due to 'security risks'

U.S. gov pressures allies to ditch Huawei equipment due to 'security risks'

The company announced in August that the Australian government has blocked it from providing 5G technology for the country's wireless networks.

The battle begun in 2012 when United States policymakers considered both Huawei and ZTE to be threats for National Security.

What do you think of the US's efforts to block Huawei in other countries?

"Huawei is surprised by the behaviours of the U.S. government detailed in the (Journal) article", said Huawei in a statement released Friday.

Huawei, the world's biggest telecom equipment manufacturer, has always been under scrutiny from USA intelligence agencies for its alleged ties the Chinese government and the possibility its equipment could be used for espionage.

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U.S. officials also told the outlet that the administration is considering offering financial aid to countries that step up and block Huawei. US lawmakers were warning about the companies all the way back in 2011, and the following year banned USA telecoms firms from buying Huawei or ZTE equipment.

Intelligence agency leaders and others have said they are concerned that Huawei and other Chinese companies may be beholden to the Chinese government or ruling Communist Party, raising the risk of espionage.

Huawei has come under scrutiny in the United States recently.

A number of major telecommunications companies directed more than 5 percent of their capital expenditure to Huawei, according to Bloomberg supply chain data. Washington officials also think that China could use this technology to hack or damage the networks where it is installed. "There are additional complexities to 5G networks that make them more vulnerable to cyberattacks".

Why it's important: In the past year, the USA government rallied against leading Chinese electronics manufacturers including Huawei and ZTE, fearing these companies' close relationship with the Chinese government would pose national security risks.

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