The government of United States is trying to push wireless and internet companies in allied nations to avoid using the telecommunications devices manufactured by the Chinese firm Huawei Technologies, according to a report published by the Wall Street Journal recently.
Sources familiar with the development apparently claim that the United States officials have approached the government counterparts and telecommunication officers in allied nations, which are already using Huawei devices on a large scale, and questioned them about what they consider as cybersecurity threats arising due to the device.
Reportedly, Huawei has recently come under the radar, in the United States due to its suspected cybersecurity risks. If reports are to be believed, the U.S. has already widely barred Huawei Technologies from delivering to its contractors and government, whereas Australia has barred the firm from providing equipment for the 5G mobile network.
According to sources familiar with the matter, Huawei, just like several other Chinese technology companies, has fallen prey to the U.S. government’s scrutiny as the trade war amid the two nations intensifies, although it has time and again denied allegations regarding the involvement in intelligence activities for any government.
Furthermore, Intelligence agency members and others have shown concern about Huawei and other Chinese firms being beholden by the Chinese government or the governing political party, raising the risk of spying, claim sources.
Reportedly, as a result of these developments, the Hong Kong shares of competing company ZTE Corp fell about 5.6 percent on Friday, bringing down the sector. However, they recuperated few losses to trade down 2 percent near midday, whereas the company’s Shenzhen shares declined 3 percent, cite trusted sources.
According to trade analysts, ZTE’s value has almost halved this year, beaten by a 3 month U.S. government embargo on American companies trading parts to the firm, and an ensuing $1.4 Bn settlement.