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3 June 2020

Win For Trump? Britain Backs Away From Huawei 5G Plans

Alasdair Lane
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‘Back away from Huawei.’

That was the demand made of British prime minister Boris Johnson, and that, it seems, is precisely what he has done. 

Under pressure from a cabal of Conservative MPs, security experts, and President Donald Trump himself, Johnson has pulled plans to involve the Chinese telecoms giant in Britain’s 5G network infrastructure, reports suggest.

It was only earlier this year that Huawei had its role in the country’s digital future confirmed. That decision followed parliamentary assent for the firm to help broaden Britain’s next generation network, so long as its involvement was capped at 35%.

But now, reports indicate that Johnson has ordered officials to ensure that Huawei is expunged from 5G plans by 2023. 

LONDON, ENGLAND - MAY 14: Prime Minister Boris Johnson applauds for key workers outside 10 Downing ... [+] GETTY IMAGES

In many ways, this comes as no surprise. Enlisting the company was his predecessor's idea—a scheme Johnson was never especially keen on, insiders say. His scepticism is no doubt driven by widely-held—though hotly disputed—fears that Huawei’s tech could be infiltrated by Chinese state snoopers.

It was on the back of such concerns that Conservative MPs mounted a parliamentary rebellion in March, almost defeating the government in a critical vote on network expansion.

These fears are echoed in the highest echelons of Britain’s security community, it seems, with the National Cyber Security Centre (NCSC) confirming in recent days that a new enquiry will examine Huawei’s U.K. operation.

Across the Atlantic, enmity for the Chinese firm is more pronounced. President Trump was reportedly “apoplectic” in a phone call with his British counterpart after hearing of the U.K.’s Huawei plans. That rage soon crystallised into an official warning: any nation using Chinese tech risked their ties with the U.S. government. 

For Johnson, this was clearly too much. Intelligence sharing with America is vital to Britain’s national security, not to mention the prime minister's hopes for a transatlantic trade agreement.

CAPE CANAVERAL, FL - MAY 27: President Donald Trump participates in a press conference at the ... [+] GETTY IMAGES

With post-Brexit talks at a stalemate with Brussels, London needs the ballast of a bumper U.S. trade deal now more than ever. If Huawei must be hewn from Britain’s 5G network to achieve this, that’s clearly a price Downing Street is willing to pay. 

Johnson’s Beijing-boycott might extend beyond telecoms, too—reports indicate that the British government is seeking to end its reliance on Chinese medical supplies and other strategic imports. 

Greater self-sufficiency is surely to be welcomed, regardless of geo-politics. But by adopting policies that serve the interests of Washington, Britain becomes a player in the nascent Sino-American cold war. 

This carries its own risks. Beijing has been as direct as Washington: if the U.K. locks Chinese firms out, the two nation’s bilateral trade—valued at over $90 billion annually—will suffer. 

And then there’s the growing threat of China leveraging its economic advantage in Europe, seizing on the continent’s financial frailty amid the COVID-19 crisis to scoop up critical businesses. 

A shop for Chinese telecom giant Huawei features a red sticker reading "5G" in Beijing on May 25, ... [+] AFP VIA GETTY IMAGES

Johnson’s u-turn on Huawei also presents a very practical challenge—finding a replacement. If Britain is to be the cutting-edge, forward facing nation he envisions, comprehensive 5G coverage is crucial. 

Huawei, remarkably, is one of only three companies in the 5G market, and is by far the most affordable. Mobile U.K.—a trade group representing British network operators—puts the cost of shunning the Chinese firm at an eye-watering £7bn ($8.6bn).

With a historically savage recession in the offing, that’s a figure Johnson will surely struggle to stomach. Then again, political expediency doesn’t always come cheap.

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