The report has consulted a number of sources, including venture capitalist André Pienaar, Henry Jackson society fellow Christopher Balding and Roslyn Layton, founder of China Tech Threat. These figures point to the subsidies the company has reportedly received and its opaque ownership model as reasons for a ban. The report adds that the use of Huawei equipment in the UK has caused some consternation from other members of the Five Eyes intelligence-sharing network.
As much as the documents look to criticize Huawei, it also serves as an indictment of successive governments policy toward IT and manufacturing. One of the reasons that Huawei was able to achieve such a large part of the market was because of its low price. This hasn’t been helped by a “lack of diversity across the telecoms supply chain,” which the report says “creates the possibility of national dependence on single suppliers.” The fact that the three major players are Nokia, Ericsson and Huawei is, essentially, not good enough given the current geopolitical situation.
Huawei has already told CNBC that the report “lacks credibility” and is “built on opinion rather than fact.” It added that it expects people to “see through these groundless accusations of collusion,” and instead look at the company’s record over the last two decades.