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U.K. Panel Concerned by Lack of Clarity on Huawei-State Links

The U.K. Parliament’s Intelligence and Security Committee expressed concern about a lack of clarity over links between China’s government and Chinese telecommunications company Huawei Technologies Co. in a report examining Britain’s vulnerability to cybercrime.

“Most of the concerns surrounding Huawei relate to its perceived links to the Chinese state,” the lawmakers wrote in the report released in London today. “China is suspected of being one of the main perpetrators of state-sponsored attacks, which are focused on espionage and the acquisition of information. In this context, the alleged links between Huawei and the Chinese state are concerning, as they generate suspicion as to whether Huawei’s intentions are strictly commercial or are more political.”

The panel noted that “Huawei strenuously denies that it has direct links with the Chinese government or military, claiming that it receives no financial support from the Chinese government and that it is 98.6 percent owned by its employees.”

“Nevertheless, there is a lack of clarity about its financial structures,” the panel said. “Moreover, Huawei’s denial of links to the Chinese state is surprising, given that such links to the state are considered normal in China.”

To contact the reporter on this story: Kitty Donaldson in London at kdonaldson1@bloomberg.net

To contact the editor responsible for this story: Eddie Buckle at ebuckle@bloomberg.net

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