HUAWEI is on the receiving end of a brutal executive order from President Donald Trump, which now seriously threatens the company’s operations.
Why did Donald Trump ban Huawei?
In his defense, he claims it was for cybersecurity.
Cyber-espionage has been going on for years.
In one famous example in 2012, it emerged that China had hacked UK defense firm BAE Systems to steal data about a $264 billion F-35 Joint Strike Fighter (JSF) jet.
This wasn’t the first time the country had been accused of stealing military jet plans.
But recently, the focus has moved to Chinese companies, particularly those that manufacture network equipment as 5G services start to roll out.
So, why is all the focus on Huawei, and how secure is it to use its products and services?
Founded by a People’s Liberation Army officer, the firm is owned by 80,000 of its 180,000 employees.
Like its rivals Nokia and Ericsson, Huawei has manufactured mobile network equipment for years.
During the last decade or so it has stormed into the consumer market as a smartphone manufacturer and now owns 16% of the market.
Despite, its world penetration there is growing concern about Huawei from governments around the world.
So much so, that many have blocked telecoms companies from using Huawei gear in next-generation 5G mobile networks.
So far, the US and Australia have banned Huawei from providing equipment for their 5G networks, while Canada’s relationship with the firm is under review.
There is also concern among European telecoms network operators, with some considering removing Huawei’s equipment. BT, for example, has removed Huawei equipment from key parts of its 4G network.
At the same time, the UK has expressed concerns, with the National Cyber Security Centre (NCSC) asking Huawei to fix issues that could pose a new risk to the network.
Now, back to the question: Why did Trump ban Huawei?
The US government issued the executive order out of apparent concerns for national security.
US officials argue the Chinese government could force national companies to install backdoors in their hardware to spy on American networks.
The company fervently denies the claims, and CEO Ren Zhengfei is adamant the act won’t stop Huawei’s international market performance.