UK set to make Huawei decision by the fall

The United Kingdom will decide by this fall whether to allow Chinese telecommunications company Huawei to continue equipping British mobile operators with 5G network kit, a government minister said on Tuesday.

The UK has come under pressure from the United States to boycott Huawei due to alleged security risks, and UK Digital Secretary Nicky Morgan said the government intends to reach a determination on the issue before winter.

"I would hope that we could do something by the autumn," Morgan told the BBC on Tuesday. "We want to make the right decision and we've got to make sure that this is going to be a decision for the long term, making sure we keep all our networks secure."

The UK government was expected to arrive at a verdict on the Huawei issue last month, but a handover in power from former prime minister Theresa May to incumbent leader Boris Johnson delayed the decision.

Morgan revealed that the Johnson administration has been waiting for Huawei-related rulings to play out in the US, where the Chinese company was placed on the Commerce Department's Entity List in May, which barred it from trading with US suppliers.

This was followed by a 90-day reprieve that allowed some companies to continue trading with Huawei. Last week, the US extended this limited license for a further three months.

"I am looking at this along with the new government and talking to the prime minister about it," Morgan said. "One of the things we were waiting for was the decision by the American authorities, who had to decide what they were going to do about the entity listing of Huawei."

Huawei rotating chairman Xu Zhijun said on Friday that the company expects to take a $10 billion revenue hit this year due to the US sanctions, which is far less than the initial estimate of a $30-billion hit that the company made in June.

The White House confirmed US President Donald Trump and Johnson discussed the

Huawei question on the sidelines of the G7 summit in France on Sunday.

"The president and prime minister addressed global security issues of mutual concern, especially Iran's threat to freedom of navigation in the Gulf, tensions in Hong Kong, 5G and Huawei, and instability in Libya and the Sahel region," the White House said in a statement.

The US has accused Huawei of assisting the Chinese government in espionage, however the UK National Cyber Security Council has found no evidence to support the claim.

Huawei equipment is not used in UK government networks and in certain areas of core network infrastructure. But major British mobile operators EE, Vodafone, and Three have incorporated Huawei kit in their 5G rollouts this year, despite the threat of the ban.

And on Friday, Huawei unveiled a 5G "experiential hub" at Manchester's Media City UK, which houses the studios of several major British media companies. The hub is designed to showcase how 5G can improve connectivity and provide new technological solutions to British businesses and other internet users.

"We are excited to bring a tangible example of a future led by 5G to Manchester," said Huawei UK Chief Executive Jerry Wang. "5G has the power to transform Manchester into a totally connected city; for the burgeoning startup community in the city, this presents even more of an opportunity."