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December 19, 2018

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Huawei rejects security fears, on target for US$100b revenue

Huawei defended its global ambitions and network security yesterday when the company opened research and development labs to reporters at its headquarters.

The company has been under fire this year, with Washington leading efforts to blacklist Huawei internationally and securing the arrest of the company’s chief financial officer in Canada.

The concerns have mounted as countries begin to plan and roll out fifth-generation mobile communications, or 5G, the next milestone in the digital revolution, bringing near-instantaneous connectivity and vast data capacity.

Huawei has faced a tough year as Western countries such as the United States, Australia, New Zealand and Britain pull back from using its products.

Huawei’s rotating chairman Ken Hu told reporters the company has not received any request from the Chinese government for access to information.

“There is no evidence that Huawei poses a threat to the national security of any country,” Hu said, adding geopolitical concerns have caused a few countries to forego its equipment.

He said customers continue to trust the company despite some countries’ efforts to fan fears against the firm.

“Banning a particular company cannot resolve cybersecurity concerns,” he said. “Huawei’s record is clean.”

Hu emphasized the information-sharing and collaboration centers Huawei is building in Europe, Canada and elsewhere to evaluate products.

Those are based on a cyber evaluation center the company built in Britain a decade ago to share information with regulators.

“We have confidence in the fairness and independence of the judiciary systems of the countries involved,” Hu said when asked about the arrest in Canada of Huawei’s chief financial officer, Meng Wanzhou.

“We look forward to a just conclusion to this matter.”

With 5G’s rollout expected to gain pace in coming years, Huawei has secured 25 commercial contracts for 5G, Hu said.

Huawei has shipped more than 10,000 base stations for the fifth generation of mobile communications, Hu said.

The company is on track to reach US$100 billion in annual revenue this year, he added. It has more than 80,000 employees engaged in research and development — almost half of its staff.

Huawei is the world’s largest supplier of telecommunications network equipment and second-biggest maker of smartphones, with revenue of about US$92 billion last year, about half from overseas.

Britain’s largest mobile provider, BT, this month announced it was removing Huawei equipment from its 4G cellular network, days after the head of the MI6 foreign intelligence service singled out the company as a security risk.

Hu said BT acted “under political pressure.”

Last month, New Zealand’s intelligence agency barred Huawei equipment in the rollout of the country’s 5G network, citing similar concerns. Australia and the US also enacted similar bans.




 

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