An executive for Huawei Canada says allegations that the company would engage in state-sponsored espionage make little sense, arguing such activity would destroy the trust essential to its business.
Some critics claim Chinese companies like Huawei are legally obliged to assist government intelligence requests. Huawei has consistently denied a legal requirement exists that would compel it to conduct espionage.
Western concerns are heightened by reports that China is a leading state sponsor of cyber-attacks. Such assessments have made governments cautious about deploying Chinese-made equipment in sensitive infrastructure like 5G networks.
Several countries have responded differently: the United States and Australia have banned firms such as Huawei from participating in 5G rollouts, while others, including the United Kingdom and Canada, have chosen to inspect and vet equipment before allowing its use.
Scott Bradley, Huawei Canada’s vice-president of corporate affairs, emphasized the practical consequences of any suspected misconduct:
“I think people need to step back a little bit and think of the simple dollars-and-cents economic impact if in fact any of this activity ever happened.”
“There are perceptions that need to be challenged.”
In September, a Canadian official suggested that permitting Huawei to operate in the country could improve overall security, since a diverse supplier base limits the impact if a single vendor’s equipment is compromised.
The UK created the Huawei Cyber Security Evaluation Centre (HCSEC) in 2010 to examine the company’s products before they are used in national infrastructure. Security specialists, including personnel from GCHQ, review Huawei equipment for potential vulnerabilities.
For several years HCSEC reported only minor issues and was able to provide assurances that Huawei’s equipment did not pose a significant risk. However, in July the centre identified shortcomings in Huawei’s engineering processes and downgraded its assessment to “limited assurance,” indicating risks had not been fully mitigated.
Huawei was criticized for moving slowly to address the concerns, but UK security officials and Huawei executives subsequently met and agreed the company would change its practices to improve security and transparency.
Rising anti-Huawei sentiment has coincided with efforts by the US to persuade allies to avoid Chinese 5G vendors. Reports suggest the US has lobbied partners to exclude Huawei and has offered support to countries that choose American suppliers.
“If a government’s behaviour extends beyond its jurisdiction, such activity should not be encouraged,” a Huawei spokesperson said, reflecting the company’s position that state overreach is problematic.
The company’s troubles were compounded earlier when Huawei Chief Financial Officer Meng Wanzhou was arrested in Canada at the request of US authorities on allegations related to violations of sanctions against Iran. Her detention drew widespread attention because she is the daughter of Huawei founder Ren Zhengfei.
Part of the scrutiny surrounding Huawei stems from its founder’s past: Ren Zhengfei served in the People’s Liberation Army at a rank comparable to a major, a fact critics cite when raising concerns about potential ties between the company and the Chinese state.
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