Banned on Tuesday from the future 5G network in the United Kingdom, the Chinese telecom giant Huawei is as intriguing as it is worried. Here are five things to know about the world’s number two smartphone.
What is Huawei?
Founded in 1987 in Shenzhen (south) by a former engineer of the Chinese army, Ren Zhengfei, Huawei is a telecommunications giant, present in 170 countries, claiming 194,000 employees, and whose net profit last year exceeded 8 billion euros.
Huawei ventured beyond its borders in 1997, targeting Southeast Asia, Africa and Eastern Europe, thus avoiding face-to-face with its Western competitors like the Finnish Nokia, the Swedish Ericsson or the Franco-American Alcatel-Lucent (since bought by Nokia).
Its geographic expansion and its heavy investments in research and development – more than 15% of its revenues – have positioned it as a key player in 5G (ultra-fast generation of mobile internet) and make it a crucial strategic issue. for China’s technological ambitions.
After having first imposed itself thanks to competitive prices, the Chinese group is today considered essential by many operators because of the quality of its equipment.
Why is he worried?
Ren Zhengfei’s military past, his membership in the Communist Party and an opaque corporate culture at Huawei have fueled suspicion of the Chinese regime’s influence.
Charges denied by Huawei, which insists on being a private group whose capital belongs entirely to its employees.
The United States on the offensive
The United States has made Huawei a personal affair and the charges against the Chinese group are numerous.
It ranges from a breach of the embargo against Iran to accusations of industrial espionage and theft of technology, all against a backdrop of technological and commercial showdown between Washington and Beijing.
U.S. intelligence services are primarily concerned that Huawei will allow the Chinese authorities to use its equipment to monitor U.S. communications and data traffic.
Huawei says it will refuse any such request from Chinese intelligence.
The argument did not, however, convince several partners in the United States: Australia and Japan chose to ban Huawei on their soil.
Singapore only gives it a secondary role for its future 5G network, preferring Nokia and Ericsson.
Shared Europe
The European position oscillates between the desire not to offend the American ally and that of not pointing China.
In France, the Chinese equipment supplier will not be subject to a total ban on the 5G market, but operators already using Huawei will have operating authorizations limited to eight years.
In Germany, the subject has not been settled. While some politicians advocate security criteria that would effectively exclude Huawei, Chancellor Angela Merkel fears that it will affect trade with China.
Italy wonders about a possible ban, according to the press of the country.
In Spain, Poland and Greece in particular, it is already planned that operators will use Huawei in their deployments, alongside Ericsson and Nokia.
Belgium has no plans at the moment to change its position in relation to the Chinese giant. “The risk analysis that has been done shows that we are safe. There is no reason to tighten the screw even more,” said Telecommunications Minister Philippe De Backer.
A frame in the crosshairs
On December 1, 2018, Huawei’s CFO and daughter of the group’s founder was arrested at the request of the American authorities during a stopover at Vancouver airport in Canada.
Meng Wanzhou, considered a possible future Huawei executive, is accused of having lied to circumvent American sanctions against Iran.
This offense is punishable by more than 30 years in prison in the United States, the country to which she is threatened with extradition.
His arrest in Canada sparked an unprecedented crisis between Ottawa and Beijing, which arrested two Canadians a few days later, accusing them of spying.
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