British Report Finds Technical Risks in Huawei Network Gear

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Politico called the new report a "bombshell" and predicted it could have ripple effects in other European countries with Huawei security centers.

The U.K. experts thought the vulnerabilities they discovered could be "exploited by a range of actors", but they did not believe the defects were a "result of Chinese state interference". The firm's revenues surged 19.5 percent last year, the highest in two years, and was due to a high number of smartphone sales in China.

Huawei has repeatedly said Beijing has no influence over it.

In Canada, the federal government is still undertaking a review of 5G and of whether it's safe to allow Huawei to provide equipment to telecom operators in order to deploy the next mobile network iteration. The technology is meant to vastly expand mobile networks to support self-driving cars, medical devices and factory equipment, but that makes it more politically sensitive.

Relations between Poland and China have become complicated, after Poland arrested a Huawei executive in January on spying charges.


Huawei's annual report, released at corporate headquarters in the southern city of Shenzhen, did not detail what caused the carrier business decline or make clear reference to the global pressure.

Germany recently announced Huawei would be able to bid on 5G contracts there and the us has issued warnings to Israel that Chinese investment could result in reduced intelligence sharing.

Huawei, the world's largest telecom equipment supplier may have been a part of many controversies past year but it seems that the company's financials haven't taken a hit.

Australia, Japan and Taiwan have imposed curbs on use of Huawei technology, but Germany, France and other governments are balking at US demands to exclude it from 5G networks. The Oversight Board offered a "limited assurance" that Huawei's products will even be able to be secured when looking ahead into the future.

But Huawei may need three to five years to fix the problems, the board says. "They do not discriminate against vendors from any country".


Despite the success, the company is now under intense scrutiny over Chinese government security concerns. But Guo said Friday the company has to spend more time talking to potential customers "to address their concerns".

Broken down by division, the company's consumer business is now contributing the most in sales, growing 45 percent during the year to 349 billion yuan, while the sale of equipment to telcos was down 1.3 percent to 294 billion yuan.

Mr Guo blamed weak network gear sales on a temporary lull in investment by carriers. He expressed confidence 5G sales will take off this year. "It wants to smear Huawei because it can not compete against Huawei", Guo Ping, rotating chairman of the world's top producer of telecoms equipment and No.3 maker of smartphones, said on Friday.

The whole Huawei-is-a-security-concern issue is convoluted and divisive. The company also said that it invested 101.5 billion yuan in research and development in 2018, roughly percent of its revenue.

If Huawei has a security problem, what exactly is it?


"Spying would be equal to suicide", said Song Liuping, Huawei's chief legal officer.

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