Huawei is not going through its best moment. To the complicated situation that it already had with the US veto that prevents companies from that country from doing business with the Chinese manufacturer, the recent veto was joined by TSMC to send chips to Huawei.
Far from improving, it seems that things are going to get even more complicated for Huawei as it now faces a crisis in its telecommunications business in the United Kingdom.
Prime Minister Boris Johnson has instructed officials to move forward with plans that would end HUAWEI’s involvement in the country’s 5G infrastructure.
The reported goal is to phase out all HUAWEI-supplied network equipment from the country’s 5G infrastructure by 2023.
Apparently Johnson is facing immense pressure from conservative MPs who oppose any presence of HUAWEI on his 5G network alleging security risks while hoping to reduce his dependence on Chinese products.
Pressure has intensified in the wake of the coronavirus pandemic after reports emerged that China failed to warn the international community in time to prepare for the crisis. The plan is also reportedly backed by UK intelligence officials, who argue that “any risk that the HUAWEI team could be exploited for mass surveillance could be contained.”