UK's Huawei fears may take five years to address

Company logo at the office of Huawei in Beijing. Thomas Peter Reuters  File

Company logo at the office of Huawei in Beijing. Thomas Peter Reuters File

Now, Abraham Liu, Huawei's chief representative to EU institutions, has used a speech to mark the Chinese New Year to repeat the company's denials and to stress its willingness to cooperate with the EU and European governments.

Huawei continues to deny allegations, believing its track record across 170 countries supersedes the lack of evidence.

"Enhancing our software engineering capabilities is like replacing components on a high-speed train in motion", CEO of the Huawei carrier business group Ryan Ding told the UK Parliament's Science and Technology Select Committee in a letter last week, according to Reuters.

The comments due to be delivered in a speech by Abraham Liu, Huawei's chief representative to European Union institutions, come as the company finds itself under fire over ties with the Chinese government and suspicion that Beijing could use its technology for spying, which the company denies.

"It is a complicated and involved process, and will take at least three to five years to see tangible results".

Western security concerns surrounding Huawei, and fellow Chinese telecoms equipment firm ZTE Corp (0763.HK) (000063.SZ), centre around China's National Intelligence Law.

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Chancellor Angela Merkel has said Germany needs guarantees that Huawei would not hand data to the Chinese state before it can take part in building fifth-generation networks.

BT said in December that it would not buy Huawei equipment for the core of its next generation 5G network, which launches this year in 16 United Kingdom cities.

The warnings seem to have gained some ground in Europe, where it was noted that the Chinese National Intelligence Law of 2017 requiring all firms and individuals at home and overseas to cooperate with the state intelligence agencies.

The administration's desire to make a strong impression at MWC is so great that, at one point, Secretary of State Mike Pompeo planned to attend the event, according to the second industry source.

The oversight board identified "technical issues" in Huawei's engineering processes, which it said could cause "new risks in the United Kingdom telecommunications networks". The measures will be finalized before the 5G auction, to be available for bidding companies, the report added. "Were Huawei ever to engage in malicious behavior, it would not go unnoticed - and it would certainly destroy our business". People with knowledge of the matter said it will likely further criticise Huawei's slow response and detail tense relations with British officials.

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