British Security Fears To Be Allayed By Huwai By A $2 Billion Investment Pledge

According to media reports, the embattled Chinese tech giant Huawei has informed the British government that it would be expending about $2 billion in the country as it tries to dissuade fears among the British authorities related to its security as raised by the British government in a report earlier this year. The reports are based on source information with knowledge of the matter.

A number of countries in the West has been very sceptical of and has put under strict scrutiny the Chinese firm which is also the largest manufacturer of producer of telecoms equipment in the world. There are fears and apprehensions among a number Western government and their security agencies about the threat to their national security over assumptions that the Chinese government could be spying on them through the telecom equipment that Huawei supplies. Such allegations have been repeatedly refuted by the Chinese company.

The report that is being mentioned in the reports and the one that has caused concern among Huawei was released in July this year and was signed off by Britain’s GCHQ spy agency has concluded that there were technical and supply-chain issues in relation to the equipment that was manufactured and supplied by Huawei which had created new security threat for the national telecom networks.

Concerns about the security of third-party components from a US supplier and technical problems which limited security researchers’ ability to check internal product codes were included in those issues highlighted in the report.

Since the release of the report, Huawei has been meeting British officials and has reportedly assured promised making investments of about $2 billion as a part of its efforts to put a fix the issues highlighted in the report. This information was provided to the media by another source who did not want to be named given the sensitivity of the matter.

“It’s about Huawei promising to build and manage its products better,” the source reportedly said.

There had been no reaction from Huawei on the news report.

Sources also reportedly said that the senior Huawei officials in China had been kept in the loop about the plan of the investment and this decision was arrived at before the sudden arrest of the chief financial officer of the company in Canada on December 1, reportedly at the behest of the United States in connection to Huwaei allegedly breaching the US sanctions on Iran.

Global stock markets have been roiled by the arrest of Huawei CFO Meng Wanzhou, who is also the daughter of the company’s founder, as investors feared that the temporary truce that had been arrived at over the trade war between the US and China for a 90 day period would be affected and the trade war would escalate between the two largest economies of the world.

Earlier in the year, Huawei was barred from participating in the bidding process for supplying of equipment for building of 5G networks in Australia, New Zealand and Japan. The first ban on the Chinese company was put by the US where it was banned access ot the American market.

(Adapted from NDTV.com)

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