Huawei Arrest U.S China | Burning Issues

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WHAT JUST HAPPENED?

The arrest of a top Huawei executive has roiled the business world and threatens to derail the tenuous trade truce between the United States and China. Meng Wanzhou, the Chinese tech company’s chief financial officer, was detained in Vancouver on Saturday at the request of US authorities. She’s accused by the United States of helping Huawei cover up violations of sanctions on Iran, according to Canadian prosecutors.

THINGS GETTING WORSE

US lawmakers are condemning Huawei, which they say poses a national security threat to the United States. Chinese officials have called for Meng’s release. An op-ed in the Chinese tabloid Global Times said the United States is just trying to stifle Huawei because it’s a business competitor.

HOW BIG IS HUAWEI?

Huawei has deployed its products and services in more than 170 countries Huawei overtook Ericsson in 2012 as the largest telecommunications-equipment manufacturer in the world, and overtook Apple in 2018 as the second-largest manufacturer of smartphones in the world, behind Samsung Electronics.

HUAWEI

The Chinese tech company reported Friday that its profit jumped 28% in 2017 to $7.3 billion CNBC reported that Huawei’s revenue in 2018 will exceed 100 billion US dollars for the first time. Ren Zhengfei, a former engineer in the Chinese People’s Liberation Army

SO WHY THE ACTION AGAINST HUAWEI

Over the past couple of years, Huawei has reportedly circumvented sanctions imposed on North Korea and Iran, providing the countries with telecom equipment that can be used for extensive spying on populations, so-called dual use technologies. But the vast majority of criticism has surrounded Huawei’s growing influence on global communications in the coming years. The Chinese company will provide technology for 5G wireless internet across the world.

WHY ARE COUNTRIES BANNING HUAWEI?

In 2012, Huawei and ZTE Corp, another Chinese telecom company, were the subjects of an investigation that looked into whether their equipment could pose a threat to US interests. That report by US Congress concluded that “Huawei did not fully cooperate with the investigation and was unwilling to explain its relationship with the Chinese government or Chinese Communist Party, while credible evidence exists that it fails to comply with US laws.”

WHY ARE COUNTRIES BANNING HUAWEI?

Australia, part of the Five Eyes group, banned Huawei from providing 5G technology in August of this year, but it did not specifically mention Huawei by name. In a statement, the Australian government said companies “who are likely to be subject to extrajudicial directions from a foreign government” would no longer be allowed to provide 5G technology, which was clearly directed at the Chinese telecom company.

FIVE EYES

WHY ARE COUNTRIES BANNING HUAWEI?

Japanese government would also ban Huawei from future purchases for its upcoming 5G infrastructure.

ITALY AND INDIA

Besides Japan, the US has also voiced its concern over Huawei purchases to Italy, another country that currently uses the Chinese company’s products for its mobile internet infrastructure. So far, however, Italy has not made a decision yet over what company will provide the 5G network hardware. In September, Indian media also reported Huawei was banned from participating in 5G trials in the country, but shortly afterwards Huawei and India both said the company had been invited to test its equipment in the second-largest mobile market in the world.