Huawei is struggling to retain its existing partnership with other countries amidst a renewed tussle with the US. Recently, President Trump had extended the ban on Huawei’s equipment and services by a year. Now, the UK seems to have joined the list. Reports suggest that it could effectively stop the company’s involvement in 5G.
As reported by The Guardian, UK’s PM Borris Johson seems to have finally agreed to the opposition’s request to end dependency on Chinese goods. The move comes as a result of huge pressure from the conservative parliamentarians who are opposed to Huawei’s presence in 5G networks. They’ve been stressing on alternative plans citing security concerns.
Hence, Borris has reportedly drafted out a plan to phase out all networking equipment supplied by the company before 2023. This move might make the USA happy as it has been vouching against the company worldwide.
More Bad News for Huawei
Additionally, British Intelligence agencies have also been warning the government of possible exploitation of Huawei’s 5G equipment for mass surveillance. The outbreak of Coronavirus only became an icing on the cake for the opposers as they accused China of being less transparent about the disease.
This made the MPs even more aggressive against the company. Previously, they were ready to vote against the government when the PM disagreed to their request of bringing Huawei’s market share to zero.
Reliance on Chinese goods to decrease
However, with the ongoing situation getting worse, senior ministers have already started a ‘Project Defend’. This is to boost the British economy by self-improving their medical and technological sectors and reduce the dependence on Chinese goods.
It remains to be seen how things will turn out in the future. But this move has definitely brought a positive response in the parliament. On the other hand, this is not what Huawei wants to hear right now. The UK’s government, however, must be aware of possible retaliation from Beijing as well. That’s because China so far believed that the UK was open to investments from the East.