The Future of 5G: US vs China

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The UK is preparing to make the transition into 5G, the next generation of mobile network, despite the many risks outlined by the US concerning privacy and data protection of citizens, specifically from Chinese tech giant Huawei.

There have been continuous allegations against Chinese tech company Huawei, accusing them of breaching user’s privacy through unwarranted surveillance within their mobile equipment. Huawei is currently China’s biggest private company, based in Shenzhen. It is also the world’s biggest supplier of telecoms kit that is used to build 4G and 5G networks. However, Huawei was recently accused of presenting an espionage threat to the US by American security agencies who believe that the company is using its equipment to create a “backdoor” into foreign mobile and data networks. The US claim that Huawei has close links to the Chinese state and has received funding from Chinese intelligence agencies, something Huawei have repeatedly denied. Huawei is a private enterprise which, unlike state-owned enterprises in China, do not have their CEO appointed by the government and are not required to disclose their operations to the Chinese state.  Its founder, Ren Zhengfei, commented that, “When it comes to cybersecurity and privacy protection…we will never harm any nation or individual” and contended that Huawei had never received a request for information from the Chinese state.

As the issue currently stands, Boris Johnson’s government will have to make a decision in the following days as to whether or not to allow Huawei’s 5G equipment in the UK post Brexit. The US’ argument against Huawei stems from the fact that, as 5G networks develop further in the next couple of years, a need for greater connectivity will emerge. These connections won’t simply be antennas on top of roofs, but rather a wide-reaching system which connects everything from smartphones and driverless cars to the network. The US is worried that such an open access to information is something which Huawei should not be given, despite the fact that the company has repeatedly denied any wrongdoing and have even disclosed their network of information to regulators as proof, where similarly, no sign of surveillance breach was found.  Despite US warnings, many in the security community remain unconvinced that Huawei poses a significant threat.

Unfortunately for Boris Johnson, the UK government has been under increasing pressure from the US to exclude Huawei as a 5G provider due to security reasons. Such a ban would not only be costly for the UK and its telecom companies, but would also unravel a multitude of investments already made across Britain and other European countries who have spent large amounts on upgrading thousands of Huawei antennas to 5G.

In order to avoid this loss of investment while retaining a level of certainty over the security of citizens’ data, NTT DATA, a Japanese system integration company, has argued that all equipment used for 5G should be certified and regulated. Furthermore, O-RAN Alliance has added that the software which runs the network should be created in such a way that it is transparent and available to be independently checked, with an AI program constantly monitoring the network for signs of potential breach. According to The Telegraph’s revelations, Huawei has agreed to give access to the UK to “non-core” parts of their network, which UK cyber security experts believe will help reduce the risk of potential data breached.

The current market players in the 5G network market are Huawei, Nokia and Ericsson, however there is hope that smaller competitors will emerge in the future. The US has already offered more than $1bn in research to help fund smaller companies such as Parallel Wireless, Altiostar and Mavenir, in the hope that they can become significant players in the market and compete with Huawei. Huawei’s Chairman has responded to these allegations, labelling the US government as hypocritical; criticising China while the National Security Agency spies on millions of citizens around the world, as uncovered by CIA whistle-blower Edward Snowden in 2013.


by Ellie Nikolova