Monday, October 21, 2019

Chinese Whispers: How the United Kingdom Can Better Evaluate the Risk Posed by Huawei Infrastructure


The global balance of power has shifted in recent years. While foreign policy experts disagree on its specific structure, there is no doubt that a significant portion of this new world order will be Chinese.

In what seems like ages since Chinese companies only competed amongst themselves to impress the home Communist Party behind a robust set of protectionist trade policies, the country’s “State Champions” now command a staggering share of the global market in areas ranging from telecommunications to middleware manufacturing. This commercial success has emboldened China in its attempts to re-position itself as the economic partner of choice among nations the world over.

The CCP has specifically used foreign cash flows to modernize its military, clamp down on political dissent, and leverage the dependence of overseas partners on Chinese goods to increase Chinese standing in the world – all amid a blistering trade war with the United States.

However, the murky circumstances surrounding Chinese companies’ requirements to comply with state-run intelligence operations in concert with their alleged complicity in human rights violations committed by the Chinese government have left many Western nations questioning the real cost of doing business with China altogether.

Enter Huawei. A behemoth in its own right, Huawei currently commands more than a quarter of the global telecommunications market.  Its smartphones and infrastructure power the computing needs of countries from the Horn of Africa to Central America. However, Huawei has not escaped controversy. Governments across the Western world have looked at Huawei with increasing skepticism – in some cases, even banning them from selling products in their country – as the world hurtles towards the new standard for telecommunications: 5G.

This project aims to shed light on the current telecommunications infrastructure of one country - the United Kingdom – and how it might better evaluate the risk of further inviting Huawei into its telecom market against the actual demands of its citizens’ mobile computing needs. My reason for selecting the United Kingdom is twofold:

      (1) Other key members of the Five Eyes intelligence alliance (the United States and Australia are    notable examples) have flatly banned Huawei from selling expertise, infrastructure, devices, or otherwise in their countries. The UK’s situation is a bit more complex. British Telecommunications (BT) has had contracts with Huawei since the early 2000s. Britain must now decide whether to back its intelligence partners in this commercial blockade.

     (2) Domestic politics in the UK are a mess. Brexit and its associated controversies have drained the establishment’s ability to contend with looming foreign policy challenges, China’s rising influence among them. However, this project may offer insights to British lawmakers that allow them to contain Chinese influence on the European continent even as they may soon leave it behind.

Intended data-set:
(World Telecommunication/ICT Indicators Database)

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