Displaying items by tag: Espionage

Germany and Canada both considering banning Huawei from 5G

Written on Tuesday, 22 January 2019 06:07

The Canadian and German government are reportedly both seriously considering excluding Chinese telecommunications behemoth Huawei from its 5G networks due to security concerns.

Published in Telecom Vendors

Chinese telecommunications behemoth Huawei has moved swiftly to terminate the contract of an employee who has been arrested in Poland amidst claims he was spying for China.

Huawei executive Wang Weijing was detained by Polish authorities on Friday, following a lengthy investigation that was conducted by Poland’s special services. It is believed that Weijing is a director for the Polish branch of Huawei.

It’s the latest setback for Huawei’s brand globally following the high-profile arrest of the vendors’ CTO, Meng Wanzhou in Vancouver in December. She is fighting extradition to the US, where she stands accused of fraud relating to business activity in Iran.

The Chinese vendor robustly defended its CTO following her arrest and demanded her immediate release from jail. However, Huawei has wasted no timing in trying to distance itself from this latest scandal in Poland by announcing it has fired the employee in question for harming the company’s global reputation.

In a statement given to the Global Times, Huawei said that Wang Weijing was arrested for ‘personal reasons’ and said the incident caused significant damage to the company at a time when it’s under intense scrutiny regarding security.

Huawei cited management rules in company contracts and said it was left with no decision but to terminate its employer relationship with Wang Weijing immediately.  Poland has claimed that they firmly believe the Huawei executive was spying for China.

China’s Foreign Ministry responded quickly to the claims made by Polish authorities and expressed that it was ‘highly concerned’ by the arrest. The latest controversy is something Huawei really could’ve done without.

US President Donald Trump is expected to issue an executive order which would ban US companies from working with Chinese vendors ZTE and Huawei over the alleged risk both pose to national security.

In addition to this, Australia and Japan have blocked Huawei from participating in the construction of their super-fast 5G networks, whilst the UK and New Zealand are also considering banning the vendor from the rollout of its 5G networks.

EU spokeswoman Maja Kocijancic refused to "speculate" when asked Friday if there were any concerns about Chinese retaliation.

"We are aware of the reports and we will be indeed in touch with the Polish authorities for further information," she told reporters. 

Published in Telecom Vendors

Chinese telecommunication vendors ZTE and Huawei have both endured a difficult number of years in the US marketplace – and their issues have multiplied during the Trump administration.

ZTE were momentarily crippled and almost went out of business following a decision by the US Department of Commerce to ban US companies from using their equipment and products for 7 years. However, following an intervention from US President Donald Trump, the ban was overturned and the vendor was instead hit with a $1bn fine and has to adhere to a number of strict rules and regulations.

Huawei have also been subjected to sharp criticism and have been deemed by US intelligence as a serious threat to national security due to their close ties to the Chinese government. Observers believe that the aggression from the US towards the Chinese telecommunication vendors is part of Trump’s plan to use them as pawns in his trade war with China.

Tensions between Washington and Beijing escalated when ZTE were initially banned, and it sparked an angry backlash from China. The rest of the world looked on anxiously as the two economic superpowers clashed head-on, it has since deescalated, but the high-profile arrest of Huawei CFO Meng Wanzhou in Vancouver has once again put diplomatic relations between the two countries under the microscope.

However, the situation in the US for both ZTE and Huawei is set to worsen following reports that US President Donald Trump is set to issue an executive order that would effectively ban operators in the country from using the Chinese manufacturer’s equipment and products.

Reuters has reported that the Trump administration has been mulling over the order for eight months, but it expected to formally enact it later this month.  It is said the order would not name Huawei or its compatriot ZTE by name but would give the US Department of Commerce scope to ban any supplier it suspects of being a threat to national security.

Published in Telecom Vendors