Britain could face a damaging multibillion-pound trade war with China and see the roll-out of economically vital 4G mobile internet services derailed if an intelligence report, due to land on David Cameron's desk within the next two weeks, finds that the UK operations of the Chinese communications giant Huawei represents a threat to the UK's cyber-security.
Downing Street, according to intelligence sources, is prepared to face a costly trade backlash by Beijing if it opts to blacklist the multinational over allegations that the company has links to the Chinese army and concerns that its equipment could be used for cyber-espionage by the Chinese government. Huawei, though not a high-profile consumer brand in the UK, controls a quarter of the EU's telecom-equipment market, winning over half of all the contracts for 4G infrastructure technology awarded throughout Europe. The Chinese multinational is also supplying the 4G technology for EE, the company that controls Orange and T-Mobile, and has signed similar deals with O2 and 3UK.
Downing Street, according to intelligence sources, is prepared to face a costly trade backlash by Beijing if it opts to blacklist the multinational over allegations that the company has links to the Chinese army and concerns that its equipment could be used for cyber-espionage by the Chinese government. Huawei, though not a high-profile consumer brand in the UK, controls a quarter of the EU's telecom-equipment market, winning over half of all the contracts for 4G infrastructure technology awarded throughout Europe. The Chinese multinational is also supplying the 4G technology for EE, the company that controls Orange and T-Mobile, and has signed similar deals with O2 and 3UK.