LV= Chief Executive Steps Down

23 Jul 2019

Huawei cuts jobs following US restrictions

Chinese technology and telecoms group, Huawei, has cut more than 600 jobs at its US research unit Futurewei after the company was put on a trade blacklist.

The company added that this was due to “the curtailment of business operations caused by the US”.

Huawei Technologies remarked that they are ready to sign a “no backdoor” agreement with any country, following pressure from the United States.

A concern of the west has been that hidden backdoors on the telecom network were making it possible for customers data to be accessed.

As the UK government delays their decision on whether or not to ban Huawei over concerns the Chinese government could use it to spy on other countries, their equipment will continue to be used in the UK’s 5G mobile networks.

The culture secretary, Jeremy Wright, said that they were still evaluating the impact the US sanctions had on Huawei, before coming to a final decision.

He commented:

“The government is not yet in a position to decide what involvement Huawei should have in the provision of the UK’s 5G network.

“Since the US government’s announcement, we have sought clarity on the extent and implications, but the position is not yet entirely clear. Until it is, we have concluded it would be wrong to make specific decisions in relation to Huawei.”

The US added the Chinese company to their trade blacklist in May, which banned them from acquiring technology from US firms without prior approval from the government.

Wilbur Ross, US commerce secretary, in July, said that the US Commerce Department would issue licences to firms looking to trade with Huawei as long there was “no threat to US national security”.

The world’s largest maker of telecoms equipment has repeatedly denied claims that the use of their product’s present security risks.

By Lyba Nasir