Voice of Commonwealth

Huawei ban confirmed

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By Chathushka Perera

LONDON, UK (CWBN)_ It was confirmed today (30th Nov) that the British Government will be implementing the ban on Huawei 5G equipment starting September next year, in an attempt to phase out the company’s presence in the UK by 2027.

The decision was made as a result of national security concerns, owing to “clear evidence of collusion” between the company and China’s authoritarian Communist Party.

Although Huawei officials are yet to comment on the development, it must be noted that the company had continued to deny the allegations in the past.

Irrespective of the fact, this would essentially mean that companies in UK that have already purchased said equipment from Huawei, have a seven year window to remove them.

The cost estimation for the removal, made in July this year, was valued at GBP 2 billion (USD 2.67 billion), when the government first rescinded the decision authorizing Huawei to sell its equipment in the UK, in January this year.

Companies that fail to adhere to the ban may expect fines of up to 10% of annual revenue or GBP 100,000 (USD 133,590) per day.

However, the government’s stance on the matter remained indecisive for months, particularly in souring its relationship with Beijing, amid the economic deteriorations linked to Covid-19, Brexit trade negotiations, and of course the uncertainties of the US Presidential Election and the future of US foreign policy.

The ban is expected to be debated and written in to law over the coming months.

Nonetheless, companies such as Nokia and Ericsson are being considered to fill the crevices left behind by Huawei, with government investments of up to GBP 250 million (USD 333 million).

Edited by Elishya Perera

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