The risky business of a cyber Trojan horse

As The Telegraph reported yesterday, Britain will allow the Chinese technology giant Huawei to sell its equipment to mobile operators wanting to build domestic nextgeneration 5G networks, despite concerns that it might pose a security threat. The decision, disclosed after a meeting of the National Security Council (NSC), runs counter to the position adopted by the UK’S allies, notably the US.

The company will be limited to the supply of infrastructure kit and barred from the core of the networks, where Chinese “back doors” might exist. Provided there are proper safeguards against the potential for misuse or cyberspying, there is no obvious reason to exclude Huawei from the British market in which they have operated since 2003 under a Government-approved partnership with BT. This requires any potential risks to be managed, something the National Cyber Security Centre, part of GCHQ, believes can be done.

The Americans, with their own competitor systems, see Huawei as much of a threat to these businesses as a security risk. That is in keeping with Donald Trump’s efforts to clip China’s industrial wings; but it does not require the UK to follow suit provided it does not jeopardise our intelligence relationship with the US. However, it does need to be asked why we are in this position at all. Why have British-based companies not developed this technology? Why is the UK behind other countries in preparations for 5G?

Alex Younger, MI6 chief, recently asked a pertinent question. The UK, he said, needs to decide how “comfortable” it is with Chinese involvement in critical infrastructure. This is not just about security risks, which should be managed. It is about the potential long-term exposure to Chinese technology. If we rely on Huawei for 5G, why not for 6G or 7G if they come along? We already depend upon Chinese finance and technology for our future nuclear energy programme.

This is not like buying key infrastructure from a democratic, capitalist country with a plurality of competing businesses but from a dominant supplier. While the Government maintains Huawei is “legally speaking a private company”, it is naive to think it can function without the imprimatur of Beijing. The development of 5G is essential to our future economic growth. But the question posed by Mr Younger remains to be answered.