CHINA WATCHIs China’s Huawei a Threat to U.S. National Security?

By Noah Berman, Lindsay Maizland, and Andrew Chatzky

Published 16 February 2023

The Chinese telecommunications company, a world leader in 5G technology and smartphones, faces accusations that the Chinese intelligence services can use – and have used — its 5G infrastructure for espionage. The U.S. and other Western countries have effectively banned Huawei from building their 5G networks, but it remains popular in low-income countries. The outcome of the struggle could shape the world’s tech landscape for years to come.

One of the world’s leading providers of fifth-generation (5G) mobile technology, Huawei is a Chinese telecommunications giant that has stoked fears of espionage and intellectual property theft in the United States and many other countries. In response, Washington and its allies have imposed sweeping restrictions on Huawei as part of a larger crackdown on Chinese technology companies. 

Some experts warn that tensions between Washington and Beijing over technology could lead to a “digital iron curtain,” which would compel foreign governments to decide between doing business with the United States or China.

What Is Huawei?
It is the world’s largest provider of 5G networks and a leader in sales of telecommunications equipment. Based in Shenzhen, China, Huawei sells its products domestically and internationally. In the United States, it has helped provide connectivity in rural areas of Alabama, Colorado, Oklahoma, and other states.

Ren Zhengfei, the company’s billionaire CEO, founded Huawei in 1987. With more than 190,000 employees, according to its website, Huawei claims to be a private company fully owned by its employees, though its precise ownership structure is unknown.

Why Is It So Controversial?
In recent years, the United States and several other countries have asserted that the company threatens their national security, saying it has violated international sanctions and stolen intellectual property, and that it could commit cyber espionage. Many U.S. policymakers view Huawei as a commercial extension of the Chinese Communist Party (CCP).

Cyber espionage. The main concern, according to U.S. intelligence agencies, is that the Chinese government could use Huawei to spy. Officials, primarily in the United States but also in Australia and several other countries, point to intentionally vague Chinese intelligence laws that could be used to force Huawei to hand over data to the Chinese government. (The United States has not publicly provided evidence that this has happened.) There are also concerns that Huawei’s 5G infrastructure could contain backdoors that allow the Chinese government to collect and centralize massive quantities of data and give Beijing the necessary access to attack communications networks and public utilities. In 2022, an FBI investigation found that Huawei equipment can be used to disrupt U.S. military communications, including those about the U.S. nuclear arsenal.