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Huawei looks to UK after US snub

by on07 February 2018


The US number one spying chum has no problem

While the US claims that Huawei is a spy for the Chinese government, it seems that the UK, which does a lot of US spy work, has no problem working with the company.

As a result, Huawei said it would spend a further three billion pounds on procurement in Britain. Huawei said its chairwoman Sun Yafang pledged in a meeting last week with British Prime Minister Theresa May during a trade mission to China which resulted in deals worth more than 9.3 billion pounds

Huawei has been deepening ties in Britain over the last decade, and the British welcome is in stark contrast to the United States.

The procurement deals would include the global risk management and forex trading operations it runs out of London as well as patent licensing fees which Huawei, the world’s No.3 smartphone maker, pays out to British technology firms such as chip designer ARM, now part of Japan’s Softbank.

Britain’s International Trade Secretary Liam Fox was quoted as saying he was delighted to welcome Huawei's commitment to the UK. The post-Brexit UK needs as much money as it can get.

”With 90 percent of global growth forecast to come from outside the EU, my international economic department is working to ensure Britain continues to benefit from the vast opportunities available as we leave the EU.”

Huawei said the new agreement builds on a 2012 pledge to spend 1.3 billion pounds between 2013 and 2017, which resulted in it investing or procuring two billion pounds during that five year period. It employs 1,500 people in Britain.

The procurement pledge is distinct from business investments through which Huawei has become a significant supplier of broadband gear for telecom operator BT Group and mobile networks for wireless giant Vodafone Group.

Last month, Huawei suffered a new setback in a bid to win new business in the United States, when US lawmakers urged No.2 wireless carrier AT&T to cut commercial ties with it. Earlier in January, the carrier had backed off plans to introduce Huawei’s flagship Mate 10 Pro into the US market.

Five years ago, a British parliamentary committee questioned whether Huawei’s position as a critical supplier of communications networks equipment to BT raised national security issues.

The issue evaporated after Huawei issued a statement saying it enjoyed the full support both of the government and BT.

 

Last modified on 07 February 2018
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