Huawei: UK warned over sending ‘bad signal’ to China

Huawei ban will hurt UK's mobile connectivity leadership and trade

Huawei ban will hurt UK's mobile connectivity leadership and trade

The country's ambassador to the United Kingdom said blocking the communications giant would likely hurt trade between the two nations and potentially hamper Chinese investment in Britain.

Mark Evans, chief executive of mobile firm O2, tells Wake Up to Money that the firm is a "significant provider to national infrastructure in the UK", and that the government is reviewing the security standards of vendors including Huawei.

A decision was made to restrict Huawei from core parts of the 5G network but allow limited access to non-core parts by Britain's National Security Council, now chaired by Prime Minister Theresa May, who hosted a meeting to discuss the Huawei issue in April.

The Government has since insisted that no final decision has been made on Huawei with a review of the issue now ongoing. "But if you shut the door on Huawei you will send a very bad and negative message to other Chinese businesses".

The Trump administration, which maintains sanctions on Huawei on the basis of national and cyber security and restricts it from purchasing U.S. goods, has turned up the heat on allies by demanding they not allow Huawei access to their 5G technology to prevent potential spying on sensitive information and data.

There had been suggestions that allowing the firm to help build the network could prompt Washington to rethink its existing intelligence sharing relationship with the UK.

The Trump administration, which has sanctioned Huawei and tried to block it buying U.S. goods, has told allies not to use its 5G technology and equipment. Huawei says suggestions to the contrary are a smokescreen for frustrating China's attempts to emerge as a leading designer and provider of high tech equipment, rather than assembling the nuts and bolts of technology designed in the United States and Europe.

What's been done to improve the Huawei situation?

"Because those decisions have been made by the USA relatively recently that means we have to take a step back and think carefully about them before we make our final decision", Digital Minister Jeremy Wright told reporters.

"They are all factors to be considered and we are considering them".

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