Huawei has said it will be “months” before it can provide customers such as BT and Vodafone with full reassurance over the impact of the US sanctions at the heart of an imminent UK government decision that is set to undermine its ability to supply British telecoms companies with new 5G equipment.
A UK security inquiry has raised “very, very serious” questions about whether Huawei can continue with its limited role as a supplier for 5G networks after the US announced sanctions in May, according to Whitehall officials.
Those sanctions, which networks have warned could choke off the supply of chips used in Huawei equipment, are set to come into force in September, leaving some of its largest customers reliant on stockpiles of existing 5G kit which will only last into early next year.
A new report, compiled by the National Cyber Security Centre in light of the new sanctions, has been delivered to the government. Ministers are now considering the impact on Huawei’s viability as a supplier ahead of a decision by the National Security Council on whether to revise its approach to the company.
Huawei has called for UK politicians not to rush their decision.
Victor Zhang, vice-president of Huawei, told a media call that “it was not the right time” for the British government review because the “vital” decision would have a significant impact on the rollout of 5G and gigabit-speed broadband in the UK. “It is too early to draw a conclusion on any restrictions from the US government,” he said.
However, Huawei was not able to set a precise timeframe for when it could reassure its telecoms customers and governments over its long-term viability as a supplier, saying it would take “months” to complete a “full analysis” of its strategy in light of the new US restrictions.
One option for Huawei could be to send to the UK its existing supply of millions of chips originally destined for use in kit for the Chinese 5G market.
The US sanctions are aimed at cutting off Huawei’s access to semiconductors made with American equipment, such as those manufactured by Taiwan’s TSMC. This has raised fears in London that Huawei would be forced to use alternative technology with new security risks.
“If the Chinese state mobilises to support rapid manufacturing of alternatives . . . our longstanding understanding of how the [Huawei] supply chain works just disappears,” one Whitehall official told the Financial Times last month.
Mr Zhang said that the US sanctions would not have an immediate impact. “There’s no issue for Huawei to continue to work with our customers like BT and Vodafone,” he said.
However, ministers are keen to assess the repercussions as soon as possible to give operators time to act on a likely change in policy. The government will also want to reassure a growing number of Conservative backbench rebels, who have lobbied vociferously against allowing Huawei into 5G networks.
Critics of the company argue this would allow Beijing a backdoor into UK communications — a charge Huawei has consistently denied.
The Link LonkJuly 08, 2020 at 10:31PM
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