UK and US showdown imminent over Huawei’s future role in 5G network

Britain and the United States face a showdown within days over Chinese tech giant Huawei being allowed to be part of the UK’s 5G network.

Security, intelligence and other Whitehall chiefs are understood to have drawn up several options on the controversial issue to be discussed by the National Security Council next week.

They are believed to include how Huawei could be permitted to play a limited role in 5G despite fears it could make it easier for China to spy on the West. Experts at a special unit of Britain’s GCHQ surveillance centre say that the espionage risks can be mitigated.

However, US treasury secretary Steven Mnuchin was due to launch a last-minute attempt, during talks with Chancellor Sajid Javid in London at the weekend, to persuade the Government not to approve Huawei for the 5G network.

But the Government believes that the UK faces a different situation to the US over Huawei, with the company’s technology having been used in systems here for some 15 years.

British counter-espionage experts have been checking all Chinese equipment in the country’s telecoms infrastructure for around a decade.

If the Government rejected Huawei, it could increase the cost and hit the timetable for rolling out 5G, which is seen as crucial in the technology revolution, partly due to the dramatic increases in download speeds.

Only a few other companies can offer similar packages to Huawei, a situation which is seen as Whitehall as a market failure.

Boris Johnson has challenged the US to come up with a rival to the Chinese tech giant’s 5G offer, if it wants to argue that other countries should not use it.

But Donald Trump has taken a hardline on the issue, with Washington even warning that intelligence sharing could be hit if Britain allows Huawei to play a role in 5G, which is expected to be limited to “non-core” parts of the network if it is approved.

The issue is one of three areas of dispute with Washington, alongside Britain pressing ahead with a digital services tax and the US seeking to pressurise the UK to pull out of the Iran nuclear deal.

Asked about Huawei, the Prime Minister’s official spokesman said: “The work on the issue of high-risk vendors in the 5G network remains ongoing. When it’s completed it will be announced to Parliament.” Huawei denies its equipment is used for spying.