Earlier this year the NSA, FBI and CIA persuaded commoners from using Huawei phones. Concerns were related to Huawei’s relationships with the Government.
As FBI Director Chris Wray puts it:
“deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don’t share our values to gain positions of power inside our telecommunications networks.”
FBI Director Chris Wray
Now, Japan and U.K. are limiting use of Huawei’s equipments and services with concerns regarding security.
British telecom, U.K.’s largest telecom provider, said it will not use Huawei’s equipments in it’s 5G network. Japan too is reducing dependencies on Huawei’s components, especially in government networks.
Chinese companies have been notorious for not complying fully with government led investigations or compliances. Apparently, Huawei is also one of them.
In addition, Huawei’s CFO was arrested, earlier this week, in Canada on accusation of fraud. These pile ups of negativity could have much impact on Huawei. It might as well bring other similar Chinese companies under the radar.