Security worries hobble ambitions of China tech giant Huawei

The company founded in 1987 by a former military engineer is China's first global tech brand and a national champion at the head of an industry Beijing is promoting as part of efforts to transform this country into a technology creator.

Huawei, Huawei investigation, United States, US security investigation, HSBC, China, tech news — Huawei took a new hit on December 1 when its chief financial officer, Meng Wanzhou, was arrested in Vancouver on US charges of lying to banks about transactions with Iran.

While a Huawei executive faces possible US charges over trade with Iran, the Chinese tech giant’s ambition to be a leader in next-generation telecoms is colliding with security worries abroad.

Australia and New Zealand have barred Huawei Technologies Ltd. as a supplier for fifth-generation networks. They joined the United States and Taiwan, which limit use of technology from the biggest global supplier of network switching gear. This week, Japan’s cybersecurity agency said Huawei and other vendors deemed risky will be off-limits for government purchases.

None has released evidence of wrongdoing by Huawei, which denies it is a risk and has operated a laboratory with Britain’s government since 2010 to conduct security examinations of its products. But the accusations, amid rising tension over Chinese technology ambitions and spying, threaten its ability to compete in a sensitive field as carriers prepare to invest billions of dollars.

“This is something that’s definitely concerning Huawei at this stage, because there is a political angle to it and a business angle,” said Nikhil Bhatra, a senior researcher for IDC.