Huawei insists it does not spy for the Chinese government
February 26, 2019 Category IT & Telecom, Weekly
The Chinese Foreign Ministry has rejected the United States position on Huawei, saying China hopes all countries will abide by the principle of fair competition, and jointly safeguard a fair and non-discriminatory market environment. The comment followed U.S. Vice President Mike Pence warning U.S. allies should take seriously “the threat” posed by Huawei as they look for partners to build 5G wireless infrastructure. U.S. officials also said that under China’s National Intelligence Law, companies such as Huawei or ZTE could be compelled to hand over data or access to it to Chinese intelligence. “These are mistaken and one-sided interpretations of Chinese laws,” Foreign Ministry Spokesman Geng Shuang said, adding that Chinese law protects the legitimate rights and interests of citizens and organizations.
Huawei’s Founder Ren Zhengfei has maintained a consistent message in recent media appearances: Huawei does not spy for the Chinese government and will not share data with the Chinese government. In an interview with the BBC on February 19, Ren said that the arrest of his daughter Meng Wanzhou in Canada was politically motivated. “Firstly, I object to what the U.S. has done. This kind of politically motivated act is not acceptable,” Ren told the BBC. His move into the limelight was unusual for the normally low profile Ren, who generally likes to focus more on internal management and communicate with employees in small groups. But Ren and Huawei executives are communicating more proactively with the outside world these days as the company seeks to project a more transparent and open image. In mid-February, Huawei also posted a page called Huawei Facts on its website, available only in English, aimed at answering common questions about the Chinese company, such as its background, its global businesses, and its official responses to recent business setbacks.
Huawei is preparing to deploy ultra-fast 5G network coverage at Shanghai’s Hongqiao railway station, which would become the first railway hub in the world to be equipped with 5G coverage. Passengers will be able to download a movie in 20 seconds when the system is fully implemented around September. With tech support from Huawei and China Mobile’s Shanghai branch, the digital indoor system (DIS) is specially optimized for indoor data telecommunications on 5G. The technology meets the needs of high-density areas with thousands of people simultaneously using the network to make phone calls, access the internet and make mobile payments. At present, 5G signals are transformed into Wi-Fi signals in several spots in the railway station. It is free now and available to all smartphones. Hongqiao railway station handles more than 60 million passengers every year. The station’s trial 5G network, through its Wi-Fi connections, offers internet access 15 to 20 times faster than the current 4G network, according to Shanghai Daily’s on-site test.
The Beijing municipal government plans to invest at least CNY30 billion by 2022 to build 5G networks to help the Chinese capital gain a lead in commercializing the technology and expedite pioneering applications such as self-driving vehicles and remote healthcare, experts said. China is expected to have 576 million 5G users by 2025, or more than 40% of the global total. The China Academy of Information and Communication Technology also forecast that 5G will drive CNY6.3 trillion of economic output in the nation by 2030.
Ciaran Martin, Director of Britain’s National Cyber Security Center (NCSC), said that the UK could handle the risks posed by Huawei. “Because of our 15 years of dealings with Huawei and 10 years of a formally agreed mitigation strategy which involves detailed provision of information, we have a wealth of understanding of the company,” Martin said in a speech at the Cybersec Brussels Leaders’ Foresight forum. His comments imply that British authorities had not enough proof to warrant a complete ban on Huawei in the country. Martin also chairs the Huawei Cyber Security Evaluation Center (HCSEC) Oversight Board, set up in 2014, which assesses any risks that might occur from Huawei’s involvement in Britain’s national telecom infrastructure. “Any company in an excessively dominant market position will not be incentivized to take cybersecurity seriously,” he said, rejecting the notion that Huawei equipment poses higher risks just because the company is Chinese.
At this year’s MWC Barcelona, the largest exhibition for the global mobile industry, Huawei is one of the event’s major sponsors and will join a showcase exhibit called GSMA Innovation City, which will feature the latest advances made possible by 5G mobile networks, artificial intelligence (AI) and data generated from multiple devices under the so-called Internet of Things (IoT). The four-day event started on February 25, expecting 110,000 visitors. “Huawei’s presence at MWC Barcelona, especially in the GSMA Innovation City exhibit, is important for the company to show the industry that it continues to offer leading-edge technology and that operators will miss out if they don’t use its products,” said Edison Lee, Jefferies Equity Analyst covering Hong Kong-listed ZTE, China Mobile, China Unicom and China Telecom.
Meanwhile, Huawei launched a luxury 5G phone with a folding screen, only days after Samsung pioneered the new design with its Galaxy Fold smartphone. The Huawei Mate X is the company’s most expensive with a price tag of €2,299, setting a new upper limit for consumer smartphones. Introduced at MWC19 in Barcelona, the Mate X has a flexible OLED display that covers both the front and back of the device, and which unfolds outwards to become an 20 cm tablet screen.
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