Ban risks UK competitive edge

Ambassador dismisses 'Huawei risk', underlines firm's role in 5G buildup

China's ambassador to the United Kingdom says a British ban on telecommunications company Huawei would leave the nation's technological development "trailing far behind" the competition.

In an article submitted to the UK newspaper The Telegraph, Liu Xiaoming said shunning Huawei would severely delay Britain's transition from 4G to 5G networks. He also said there is no evidence to support claims that Huawei poses a cybersecurity threat.

"Fabricating 'Huawei risk' in the name of national security is tantamount to giving a dog a bad name to hang him," Liu said. "Doing so will only hamper normal cooperation between countries, and in the end, those who intend to scare others would lift the stone only to drop it on their own feet."

The UK is considering full or partial restrictions on Huawei's participation in nationwide 5G upgrades, following allegations from the United States that the company has assisted the Chinese government in espionage, a claim that the company has persistently denied.

"China has never and will never ask companies or individuals to collect data, information or intelligence in other countries by illegal means," Liu said. "The fallacy that China's National Intelligence Law could 'force' telecommunications suppliers to hand over data to China is nothing but scaremongering."

The UK was expected to reach a decision on Huawei last year, however, the Conservative Party leadership contest in the summer and the general election in December both delayed the verdict.

Prime Minister Boris Johnson enjoyed a sound victory in the election, and will now have the final say on the Huawei question. It is thought that Johnson will reach a determination in late January when he convenes the National Security Council.

On Dec 28, UK newspaper The Mail on Sunday reported that UK security chiefs have told Johnson that a Huawei ban is not necessary.

"The balance between national security and the economic benefit to the UK is something we are confident we can manage," a senior security source told the paper on the condition of anonymity.

At last month's NATO summit in the UK, Johnson provided some insight into his thinking on the Huawei issue when he said he does not want the UK to be "unnecessarily hostile" to investment from overseas, while at the same time not wanting to compromise Britain's ability to "cooperate with other vital Five Eyes security partners".

Five Eyes refers to the English-speaking intelligence-sharing community made up of the UK, the US, Canada, Australia, and New Zealand.

Both Australia and New Zealand have joined the US in imposing restrictions on Huawei, while Canada has not yet reached a determination.

Liu noted that the US has provided no evidence to support the claim that the Chinese company plants so-called back doors in network infrastructure. He also highlighted the intense level of scrutiny the company is subject to from British security services.

"Here in the UK, Huawei established a cybersecurity evaluation center in 2010 at its own expense," Liu said. "This has been operated and managed by an all-British team since then. Its conclusion has been that Huawei products do not threaten Britain's national security."

Liu also referred to a review conducted by the UK Parliament's science and technology select committee, which came out against a full ban on Huawei.

The committee's chair, Norman Lamb, said his colleagues found "no technical grounds" for excluding Huawei entirely from UK networks.

"Banning Huawei would also reduce market competition, giving network operators less leverage on equipment vendors to demand high security standards," Lamb said.

As the UK deliberates, Huawei is forging ahead with network upgrades across Europe. It has signed more than 30 5G commercial contracts with European mobile operators, making the region the largest 5G market for Huawei outside of China.

Last month, major German mobile operator Telefonica Deutschland confirmed it is partnering with both Huawei and Finnish telecommunications company Nokia on its 5G upgrades.

Huawei is one of the largest providers of network equipment in the world, with some of the most advanced 5G technology available. Mobile operators in the UK have voiced concern that a Huawei ban would delay the rollout of 5G nationally, at great cost to the economy.

Mobile UK, which is the trade association for network operators EE, Telefonica, O2, Three, and Vodafone, said a delayed 5G rollout would cost the British economy between 4.5 billion ($5.8 billion) and 6.8 billion pounds.

"The fourth Industrial Revolution is fast unfolding," Liu said, in reference to the digital age. "It provides new impetus and new opportunities for countries around the world to work towards common development. To wall off Huawei would be to move against a new round of technological revolution, which could lead to serious loss in time, expense and competitiveness."