BLOCKED CALL
Huawei is criticizing efforts being made to block sales of its 5G products,
DONGGUAN, CHINA— A top executive at Chinese tech giant Huawei Technologies Co. branded as irresponsible efforts to block the company’s sale of 5G products and said its equipment is safe, challenging foreign officials to back up claims that it poses a cybersecurity threat.
Ken Hu, one of Huawei’s four deputy chairmen, told reporters that no evidence has been produced to support the claim that the company’s products are a security risk.
Mr. Hu also asserted Huawei’s leadership in next-generation 5G technology, saying countries that try to block Huawei from their markets will only harm themselves and raise the cost for consumers.
The executive, who made the remarks during a two-hour news conference at a sprawling Huawei campus in the southern Chinese city of Dongguan, declined to answer questions about the recent arrest in Canada of Meng Wanzhou, the company’s chief financial officer, citing the legal proceedings against her. Ms. Meng was arrested on Dec. 1 in Vancouver at the behest of U.S. authorities, who have accused her of bank fraud related to Huawei’s business in Iran. She denies the charges.
“There isn’t any evidence that Huawei poses a threat to national security to any country,” Mr. Hu said. He said that Huawei’s business remains on track despite the recent turmoil and that it is set to generate $100 billion (U.S.) in revenue this year, up from $87.5 billion in 2017, and has signed 25 5G commercial contracts.
“We welcome any open dialogue with anyone that has legitimate concerns,” Mr. Hu said. “But we will firmly defend ourselves from any ungrounded allegations and we won’t allow our reputation to be tarnished.”
Huawei, the world’s largest maker of telecommunications equipment and the No. 2 global smartphone vendor, is fighting back after an extraordinary few months that has seen some markets closed off.
It is facing intensified scrutiny from officials in Washington and many U.S. allies, seeking to block the use of its equipment in 5G networks, set to begin rolling out in the next year.
In the U.S., Huawei equipment has for years been effectively locked out of telecom networks, and major carriers don’t carry its smartphones. It was set to launch a smartphone in partnership with AT&T Inc. but the carrier backed out at the last minute at the start of the year.
The U.S. has been pushing allies to avoid using Huawei technology in their rollout of 5G networks, expected to herald a rapid acceleration in connection speeds and connected devices.
For years, U.S. officials have feared that Huawei’s equipment could be used to spy on Americans or disrupt telecom networks. Huawei has long asserted it would never use its equipment for nefarious purposes and operates independently from Beijing.
Mr. Hu on Tuesday reiterated Huawei’s independence from state leaders in Beijing and said cybersecurity is among the company’s highest priorities. He called banning specific companies an “irresponsible approach” that ultimately harms consumers.
“Huawei’s record on security is clean,” Mr. Hu said. “Despite the efforts in some markets to create fear about Huawei,” he said, “we are proud to say that our customers continue to trust us.”
Mr. Hu said Huawei’s business is healthy despite the wave of pushback from Western governments. He said the number of 5G contracts it has been awarded exceeds that of its rivals.
In addition, Huawei has been opening up more cybersecurity centers around the world to let customers and governments vet its gear, he said, including one launched in Germany last month. They come on top of a facility in the U.K., which Huawei has funded for a decade.
Several U.S. allies have fallen in line with the U.S. against Huawei in recent months. Both Australia and New Zealand have sought to block Huawei from participating in their 5G rollout, citing security concerns. Earlier in December, U.K.’s BT Group PLC, a longtime Huawei customer, said it was removing Huawei equipment from its network core. It said the removal is part of a systems upgrade begun two years ago.
Mr. Hu said Huawei is open to doing business in the U.S. when the time comes.
“At the end of the day the U.S. market will need the best technologies and the best companies,” he said. “When that day will come, we don’t know. We have patience.”