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You can find the current article at its original source at http://www.guardian.co.uk/uk/2012/oct/09/china-telecoms-firm-mps-inquiry
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| Version 2 | Version 3 |
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| China telecom firm could face Commons inquiry | China telecom firm could face Commons inquiry |
| (about 1 month later) | |
| A committee of MPs and peers is considering an inquiry into the Chinese telecoms equipment vendor Huawei following a call by US legislators to stop the company doing business in America. A decision to curb Huawei's activities in Britain could delay major infrastructure projects including the building of the country's new 4G mobile phone networks and BT's national fibre broadband lines, experts warned. | A committee of MPs and peers is considering an inquiry into the Chinese telecoms equipment vendor Huawei following a call by US legislators to stop the company doing business in America. A decision to curb Huawei's activities in Britain could delay major infrastructure projects including the building of the country's new 4G mobile phone networks and BT's national fibre broadband lines, experts warned. |
| Whitehall sources indicated that the all-parliamentary intelligence and security committee had looked at security concerns over Huawei two years ago, and are likely to revive their interest in light of this week's House of Representatives report. This said regulators should block Huawei and its Chinese rival ZTE from mergers and acquisitions, and US firms should not do business with them. | Whitehall sources indicated that the all-parliamentary intelligence and security committee had looked at security concerns over Huawei two years ago, and are likely to revive their interest in light of this week's House of Representatives report. This said regulators should block Huawei and its Chinese rival ZTE from mergers and acquisitions, and US firms should not do business with them. |
| The sources said a UK cyber security evaluation centre set up by Huawei in Banbury in 2010, which includes staff from GCHQ, has made a huge difference to the confidence British companies have in Huawei. | The sources said a UK cyber security evaluation centre set up by Huawei in Banbury in 2010, which includes staff from GCHQ, has made a huge difference to the confidence British companies have in Huawei. |
| The centre is responsible for making sure that the networking equipment and software will only do what customers want them to do and that they contain no "back doors" to be exploited by cybercriminals or foreign spies. "The US does not have a comparable system," said a source. "It seems to be working well here." | The centre is responsible for making sure that the networking equipment and software will only do what customers want them to do and that they contain no "back doors" to be exploited by cybercriminals or foreign spies. "The US does not have a comparable system," said a source. "It seems to be working well here." |
| However, there is government anxiety about China's activity in cyberspace, in terms of theft of intellectual property and espionage. | However, there is government anxiety about China's activity in cyberspace, in terms of theft of intellectual property and espionage. |
| According to a Today Programme report on Tuesday, the ISC, chaired by former defence secretary Sir Malcolm Rifkind, is preparing a dossier which will evaluate the work of the cyber security centre. It will be handed to the prime minister before Christmas. | According to a Today Programme report on Tuesday, the ISC, chaired by former defence secretary Sir Malcolm Rifkind, is preparing a dossier which will evaluate the work of the cyber security centre. It will be handed to the prime minister before Christmas. |
| Cameron met with Huawei's founder and chief executive Ren Zhengfei in Downing Street last month, when the company promised to spend £1.3bn expanding its UK operations and create up to 700 jobs. | Cameron met with Huawei's founder and chief executive Ren Zhengfei in Downing Street last month, when the company promised to spend £1.3bn expanding its UK operations and create up to 700 jobs. |
| Raising concerns would embarrass If concerns are raised this would cause embarrassment to David Cameron and prove a headache for the UK's biggest telecoms companies, many of whom rely on Huawei equipment. Huawei last year won a contract to build a 4G network for EE, which the mobile network will launch at the end of this month. Sky and Vodafone are customers, and TalkTalk uses Huawei equipment in telephone exchanges and for its set top boxes. | Raising concerns would embarrass If concerns are raised this would cause embarrassment to David Cameron and prove a headache for the UK's biggest telecoms companies, many of whom rely on Huawei equipment. Huawei last year won a contract to build a 4G network for EE, which the mobile network will launch at the end of this month. Sky and Vodafone are customers, and TalkTalk uses Huawei equipment in telephone exchanges and for its set top boxes. |
| BT is a big client. In 2005, the UK telecoms company gave Huawei its first major contract in Western Europe, to help modernise its copper broadband network, and Huawei equipment is now being installed in BT's new fibre connected street cabinets. | BT is a big client. In 2005, the UK telecoms company gave Huawei its first major contract in Western Europe, to help modernise its copper broadband network, and Huawei equipment is now being installed in BT's new fibre connected street cabinets. |
| "If the UK takes the same stance as the US, and I would be surprised if they did, there will be all kinds of consequences," said Bengt Nordström, chief executive of telecoms consultancy Northstream. "It would mean that you need to agree on terms for de-commissioning, find a replacement vendor, tear out the old equipment, install the new. It's a complicated costly exercise that will delay whatever plans they have. There is an impact for the major infrastructure projects in the UK." | "If the UK takes the same stance as the US, and I would be surprised if they did, there will be all kinds of consequences," said Bengt Nordström, chief executive of telecoms consultancy Northstream. "It would mean that you need to agree on terms for de-commissioning, find a replacement vendor, tear out the old equipment, install the new. It's a complicated costly exercise that will delay whatever plans they have. There is an impact for the major infrastructure projects in the UK." |
| A spokeswoman for Huawei said she was not aware of any investigation by the ISC. Commenting on the US report, Huawei said: "Despite our best effort, the Committee appears to have been committed to a predetermined outcome ... We have to suspect that the only purpose of such a report is to impede competition and obstruct Chinese ICT companies from entering the US market." | A spokeswoman for Huawei said she was not aware of any investigation by the ISC. Commenting on the US report, Huawei said: "Despite our best effort, the Committee appears to have been committed to a predetermined outcome ... We have to suspect that the only purpose of such a report is to impede competition and obstruct Chinese ICT companies from entering the US market." |
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