The UK foreign secretary, Dominic Raab, has defended the government’s decision to allow the Chinese tech firm Huawei to build non-core elements of the UK’s 5G network, despite designating it a “high-risk vendor”.
US officials had warned against allowing any involvement by Huawei, claiming it posed a security risk.
Explaining the decision to MPs in the House of Commons, Raab insisted that “we know more about Huawei and the risks it poses than any other country in the world”.
He said the government would introduce strict rules to limit Huawei’s influence – and work towards diversifying the market.
“We are establishing one of the strongest regimes for telecoms security in the world,” he said.
Huawei will be banned outright from the “core” of the 5G network, and from operating at sensitive sites such as nuclear and military facilities. The government will also legislate to cap its share of the market at 35%.
Huawei is a Chinese telecoms company founded in 1987. US officials believe it poses a security risk because the Chinese government will make the firm engineer backdoors in its technology, through which information could be accessed by Beijing. Donald Trump has banned US companies from sharing technology with Huawei and has been putting pressure on other nations to follow suit.
The UK has accepted there is some risk in working with Huawei, but security services do not believe it to be unmanageable. It has designated Huawei a “high-risk vendor”, but the company will be given the opportunity to build non-core elements of Britain’s 5G network. The head of MI5 recently said he was confident the US-UK intelligence-sharing relationship would not be affected if London gave Huawei the nod.
Much of the doubt surrounding Huawei stems from founder Ren Zhengfei’s time as an engineer in the China’s People’s Liberation Army from 1974-83. His daughter Meng Wanzhou, a senior Huawei executive, was arrested in Canada in December 2018 over allegations of Iran-sanctions violations.
Huawei insists the Chinese government has never asked it to build a backdoor into its technology, and has offered to sign a “no spy agreement” with countries adopting it. The trade rivalry between the US and China has intensified in recent years and the firm believes the White House is simply using it as a weapon in that larger fight.
Officials feared banning the provider altogether could have delayed 5G rollout by two to three years, increased the cost to consumers and dented economic growth.
The 35% cap will be applied to the 5G and full-fibre network – and telecoms providers will be given three years to comply, by ensuring they are not overly dependent on Huawei.
The government insists the decision does not affect the sharing of sensitive data with allies or jeopardise its aim to work towards further diversification in the market. The 35% market cap will be enshrined in legislation and enforced by the regulator, Ofcom.
Raab underlined the government’s determination to “partner with like-minded countries to diversify the telecoms market” – a message the prime minister is expected to stress to the US secretary of state, Mike Pompeo, when the pair meet on Thursday.
The government’s decision was made at a meeting on Tuesday morning of the national security committee (NSC), which includes key ministers and intelligence officials.
A string of Conservative MPs, including the former cabinet ministers Iain Duncan Smith, Penny Mordaunt and David Davis, criticised the decision.
Mordaunt called it “regrettable”, and Davis said: “I do think Huawei should be banned from our networks. The size and complexity of the problem we’re trying to protect ourselves against is enormous.”
Johnson is already facing a fierce backlash from the US, which has blocked the involvement of Huawei in its networks and encouraged its allies to follow suit.
An anonymous US official was quoted by Reuters as saying: “There is no safe option for untrusted vendors to control any part of a 5G network.
“We look forward to working with the UK on a way forward that results in the exclusion of untrusted vendor components from 5G networks.”
The Republican senator Tom Cotton said: “I fear London has freed itself from Brussels only to cede sovereignty to Beijing”, comparing the government’s decision to “allowing the KGB to build its telephone network during the cold war”.
He called for the US to respond by reviewing intelligence-sharing.
Raab insisted to MPs that Huawei would not be allowed to be involved in the infrastructure underlying the communication of classified information. “Intelligence-sharing will not be put at risk, and would not ever be put at risk by this government,” he said.
The decision comes at a critical moment in the relationship with Trump’s White House, as the prime minister prepares to press for a post-Brexit trade deal.
The government has already irritated Washington by pressing ahead with plans to implement a digital sales tax on global internet firms.
Johnson is also expected to face criticism from Conservative backbenchers concerned about possible security risks.
Tom Tugendhat, who hopes to retain his seat as chair of the crossbench foreign affairs committee, had said on Monday that choosing Huawei would “nest a dragon” into the heart of the UK’s “critical national infrastructure”.
But officials are convinced they can manage the risks – and believe the best way to dilute Chinese dominance of the sector is to work on developing the next generation of technology, rather than impose a ban on an individual firm.
Huawei’s potential role in the UK’s 5G network has been causing controversy for months. Victor Zhang, the company’s vice-president, said: “Huawei is reassured by the UK government’s confirmation that we can continue working with our customers to keep the 5G rollout on track.
“This evidence-based decision will result in a more advanced, more secure and more cost-effective telecoms infrastructure that is fit for the future. It gives the UK access to world-leading technology and ensures a competitive market.
“We have supplied cutting-edge technology to telecoms operators in the UK for more than 15 years. We will build on this strong track record, supporting our customers as they invest in their 5G networks, boosting economic growth and helping the UK continue to compete globally.
“We agree a diverse vendor market and fair competition are essential for network reliability and innovation, as well as ensuring consumers have access to the best possible technology.”
Theresa May’s cabinet clashed over the issue, with Gavin Williamson sacked as defence secretary after allegedly leaking details of discussions at the NSC to the Daily Telegraph. May, now a backbench MP, welcomed the decision in the Commons.
The culture secretary, Nicky Morgan, who will confirm the decision in a statement to the House of Lords, said: “This is a UK-specific solution for UK-specific reasons and the decision deals with the challenges we face right now.”
Lady Morgan added: “It not only paves the way for secure and resilient networks, with our sovereignty over data protected, but it also builds on our strategy to develop a diversity of suppliers.”
