News Analysis: Huawei in the crosschairs
While most in the ultra-competitive telecoms industry battle with each other, China-based Huawei is also fighting on many other fronts. Along with denying US criminal charges, the embattled company is trying to stay in the race to become a 5G leader across the globe.
What happens to Huawei matters a great deal to China. The company plays a key role in China’s vision of moving away from being ‘the world’s factory’ and becoming a powerhouse of innovation.
Thomas Adam, partner at Peterreins Schley in Germany, says: “Huawei plays a huge role in China’s quest to transform the country. It’s the poster-child of high-tech success for China.”
Controversy reigns
In January this year, the US Department of Justice filed 23 criminal charges against Huawei, accusing the company of operating a rewards system for employees to incentivise the theft of trade secrets.
Huawei has denied the charges and has always insisted that it has never had ties with the Chinese government or the military, but governments from Australia to Poland and the US have long held suspicions that Huawei and fellow-Chinese company ZTE have commitments to Chinese government interests.
The accusations (as yet unproved) come amid heightened hostilities between the US and China and, while trade negotiations continue, there’s plenty of tension bubbling close to the surface.
