Huawei triumphs in three contracts facing allegations of 'unfair trading'
The parliamentary Intelligence and Security Committee has launched an investigation into the relationship between Huawei and British Telecom, focusing on the historical background, security concerns, government involvement, and any causes for concern since Huawei became involved in the UK's telecoms infrastructure. The investigation, which was initiated in October, is specifically looking into the implications for the UK.
Sir Malcolm Rifkind, the chair of the committee, has confirmed that the investigation will delve into the relationship between Huawei and British Telecom (BT), as well as examining any potential security risks and government involvement. The investigation was prompted by concerns over Huawei's ties with the Chinese government and allegations of unfair competition.
In a significant development, Huawei has won a £120 million contract to manage mobile telco Three's core network for five years. This win extends Huawei's penetration of the UK market, following an earlier five-year deal with O2. Huawei will replace Ericsson as the incumbent provider at Three.
The UK government's position on Huawei contrasts with the US government, which has questioned the security of Huawei and ZTE's products. However, Prime Minister David Cameron has stated that the UK values its relationship with China and that the business environment in the UK allows for maximizing potential between the two countries. The UK government has invested £2 billion over the next five years, with Huawei locating "a number of global centers of technical and financial excellence" in the UK.
Meanwhile, the European Commission is investigating Huawei and ZTE for allegedly inflicting damage on European producers by dumping products onto the European market at rock-bottom prices. An internal document suggests that unfair support from China's government helps Huawei and ZTE offer substantially cheaper products than European mobile infrastructure vendors. However, both Huawei and ZTE deny these claims.
Huawei denies the allegations, stating that its success is due to enabling customers to reduce overall operating costs through smart, technological innovation, not by pricing. ZTE asserts that it has been successful in global markets with its innovative design, quality service, and ability to customize products for clients at short notice. ZTE denies receiving any illegal or hidden subsidies, nor does it dump products in any markets where it operates.
It is worth noting that ZTE has not been contacted by any authority regarding this matter. ZTE claims to be committed to transparent operations and being in full conformity with trading regulations of the WTO and local markets.
As the investigation by the parliamentary Intelligence and Security Committee progresses, it will be interesting to see how the relationship between Huawei, British Telecom, and the UK government unfolds. The findings of the investigation could have significant implications for the UK's telecoms industry and its relationship with China.
