Despite U.S. Pressure, UK Concludes Huawei Is 'Manageable Risk' To 5G Rollout

In "Serious Blow" To US, Britain Concludes Huawei Is "Manageable Risk" To 5G Rollout

Following intense pressure from the US on its European allies to boycott the use of Huawei products in the rollout of next-generation 5G products and shut out the Chinese telecom giant from local markets, Germany was the first nation to rebuke Washington, with Handeslblatt reporting last week that the German government wanted to avoid excluding products offered by Huawei.

Now it's the UK's turn.

In the latest "serious blow" to US efforts to persuade allies to ban the Chinese supplier from high-speed telecommunications systems, the FT reported that the British government has concluded that it can "mitigate the risk from using Huawei equipment in 5G networks."

According to the report, the UK National Cyber Security Centre has determined that "there are ways to limit the risks from using Huawei in future 5G ultra-fast networks" and in doing so it is ignoring escalating US efforts to persuade countries to bar Huawei from their networks on the basis that it could help China conduct espionage or cyber sabotage.

The NSA has been sharing more information with allies and partners to underscore the risks, but as reported previously, several European countries, including the UK and Germany, have not been convinced that a ban is warranted.

The unprecedented rebuke of the US official stance would “carry great weight” with European leaders, not only because the UK has access to very sensitive US intelligence via its membership in the Five Eyes intelligence sharing network, but because it is a clear refusal to comply with implied but stern diplomatic demands by the US placed on European nations to further isolate China from its main export market.

Most importantly, it comes as Donald Trump is said to be considering issuing an executive order that would effectively bar US firms from using Huawei.  

Underscoring the US position, US vice-president Mike Pence said on Saturday at the Munich Security Conference that Huawei posed a threat because of a law that requires telecom companies to share data with the Chinese government. At the same forum, Jens Stoltenberg, Nato secretary-general, told the FT that the alliance was taking concerns over Huawei “very seriously” and that several allies wanted a co-ordinated response.

China, naturally, remains furious at the US, which recently submitted an extradition request for Huawei's CFO who was arrested late last year in Vancouver. Eric Xu, one of three rotating Huawei chairmen, this month criticised the US campaign to pressure countries to ban Huawei equipment, and questioned whether the US had ulterior motives. “Some say that because these countries are using Huawei gear, it makes it harder for US agencies to obtain these countries’ data,” he said throwing the espionage ball in Washington's court.