What the U.S., U.K., and Germany Are Doing About Huawei

As telecom operators switch on commercial 5G networks, they're checking geopolitical baggage at the door. Just kidding.

What's actually happening

Huawei's full stack of 5G networking gear is a bargain, so its sales team is fielding calls from carriers around the world. The U.S. government isn't happy about that, due to the security risks associated with Huawei hardware/software and the company's coziness with the Chinese government.

• This week, a bipartisan group of six U.S. senators called for a $1+ billion investment in "Western-based alternatives."

This 5G showdown extends across the world. British Prime Minister Boris Johnson has indicated, and I'm paraphrasing, that the U.K. can have a little Huawei salami. In other words, the U.K. will likely allow Huawei equipment in commercial networks but not in "critical national infrastructure," per the country's culture secretary.

Similar to Johnson's approach, German Chancellor Angela Merkel told the FT that Germany shouldn't depend on one equipment supplier but also shouldn't shut anyone out.

+ While we're here: ZTE, basically a smaller Huawei, is planning a private share sale to raise money for working capital and 5G R&D. And a China Mobile exec said he wants the company to have 100 million 5G users by the end of 2020.