These are businesses that support the Beijing government’s global strategic and economic aims, and in return receive easier access to funding and preferential treatment in government contract bids. ![]() Huawei is one of China’s ‘national champions’. To many observers, the unfolding saga is a microcosm of the high-tech cold war that’s been taking shape over the last decade, as China and the US compete for who controls global technology in the first half of the 21st century. Other developments – notably the high-profile arrest in Canada of Huawei’s chief financial officer in December on charges including fraud and Huawei filing to sue the US government over its ban – have stoked tensions further. The primary risk… at the heart of US concerns relates to whether Huawei is effectively acting as an agent for the Chinese government Huawei has strongly denied the accusations, and consistently clarified that it’s a private company not under Chinese government control and not subject to Chinese security laws overseas.Įven so, a number of other governments are now viewing the company as a potential security threat, particularly as Huawei is a global leader in the new generation 5G mobile networks that will drive the next tech advance. In August 2018, the US government introduced a ban on the use of Huawei’s equipment and services, citing national security fears.Īmerica’s concerns are essentially that gear from Huawei that’s embedded in mobile and communications networks could be used by the Chinese government for spying and cyberattacks. Long-standing concerns in the United States about Chinese tech giant Huawei – one of the world’s largest suppliers of telecoms equipment – have intensified in recent months. Global Insight examines what’s at stake as the two superpowers compete for who controls global technology this century. ![]() China’s telecom giant Huawei is facing mounting scrutiny, with the US and other governments concerned that its market dominance poses a national security threat.
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