Huawei is a Chinese multinational company that sells its products and services in more than 140 countries, to the majority of the world’s largest telecom firms. It was founded by a former member of the Chinese military, which is where Huawei’s
cybersecurity image problem starts.
Government agencies in both
the US
and Australia
have raised questions about Huawei’s ties to the Chinese military and have blocked the company from bidding on government funded projects due to national security concerns, assertions that Huawei disputes as unfounded.
Recently, perhaps in an effort to combat knocks on its cybersecurity image, Huawei has
published a whitepaper specifically on the topic of national security.
The 22-page document starts out by outlining the very volatile world of cyberthreats and detailing all the ways in which networks and data are at risk for costly breaches:
The cost of this data leakage, at its kindest or industrial espionage at its most aggressive, is claimed to run into the billions, although actually getting an accurate assessment of losses appears impossible.
Next up, Huawei takes aim at the global supply chain and challenges the idea of what a “foreign developed” product is, pointing out that many of the world’s other large telecommunications equipment companies, such as Cisco, Alcatel-Lucent, and Ericsson, manufacture many of their products in China, and that this is no different from Huawei's position as a Chinese company.
R&D Center at Huawei Global Headquarters in Shenzhen. Photo: Huawei.
This inference neglects to address Huawei’s ties to the Chinese military, ties that the other named companies don’t have.
Huawei’s whitepaper points out the vast differences in the many legal systems that international companies are held accountable to, and it makes a call for a more global standard for cybersecurity:
Huawei would welcome a coordinated international approach to principles of data protection and cyber security. We believe that such an approach would foster better overall standards of data protection on a global basis, rather than having vendors, service providers and corporations struggle to apply inconsistent standards and approaches across various countries.
Though the idea might sound like a noble one, its complexity could make it impossible to implement. But it’s a talking point for Huawei.
The last half of the whitepaper describes the R&D and manufacturing process at Huawei and touts the diversity of Huawei’s supply chain (70 percent of components are sourced outside of China, with the majority from the US).
The final note and overall theme of the whitepaper is that Huawei is issuing a call for government and industry cooperation to move forward and fight together to improve cybersecurity globally. Huawei affirms itself as a supporter of such efforts:
Collaboration on cyber security should not be limited by geographical, political or competitive differences…
In this context governments must take the lead to establish united and integrated governance to drive forward comprehensive and collaborative approaches to cyber security – Huawei commits itself to supporting such an endeavor.
It is unlikely that this whitepaper alone will break down many barriers to entry for Huawei in the US and other nations. A spokesman for Huawei denies that the company even meant to do that. Here is his email to Internet Evolution today in response to a question about whether Huawei issued the document to help its image problems:
The simple answer to your question is no. Huawei is a global information communications technology leader. The integrity of our operations and the quality and security of our solutions are world proven across almost 150 markets by over 500 operators, including national service providers throughout Europe, Africa, the Middle East, Asia and the Americas. With that leadership comes responsibility. In the face of mounting cyber-incidents, Huawei issued the White Paper as an important step to improve industry awareness of our global efforts to ensure a secure and better cyber future for all of us and to present our view on actions companies and governments need to carry out to manage global cyber security challenges. Our industry is borderless and utterly interdependent, which means common benefits, but also common vulnerabilities. As a global industry leader Huawei is making itself available to all stakeholders as a resource on best practices and future industry-wide and global standards and disciplines to better secure our networks.
At the end of the day, actions speak louder than words, and if Huawei backs up the contents of this whitepaper with collaborative actions, it might find itself on the right side of the cybersecurity discussion.
I think that could be maybe a small part of it, but I think there are real concerns about Huawei and ZTE, and the climate with China only makes it more of a pressing matter.
I think the biggest thing to look here is how Huawei and ZTE will respond to the government once all the dust settles. If they keep accusing the government of bias that will work against them; but I think if they are willing to open up and offer more transparency it will go a long way to helping them. This is going to take a while to play out, so its not like we are going to see any resolution soon.
I think the fear of a "cyber-war" with China might have a hand in this as well. China is not shy about their military capacity regarding cyber warfare.
Yeah when you have a Congressional report advising companies to stay away from two specific vendors for reasons of security the it will be hard for either company to get an American company or any company that does bussiness with an American company to play ball.
Indeed, Dana, I do think this situation and the Congressional report put official and specific accusations in play that will start to really affect how companies act with regard to ZTE and Huawei. Prior to this, it was still possible to slough them off as rumor and speculation. It's tougher to do that now, given that the House has actually come out and stated its case.
Great link Mary, I had seen a brief version of the same story, but I like the detail on the Wired piece.
Looks like Cisco jumped into bed with ZTE to try and fend off Huawei, but after this past weekends events I think they are not going to have as big of a fight on their hands.
I think the way this unfolds for the rest of the year will be very telling for the future of Huawei.
I think its also safe to say that the impact of the US government findings will reach beyond the boarders to many other countries.
I think that is the point that the government is trying to make. By having such a strong stance on the issue they make it very clear. Though I wonder what path companies who already have Huawei and ZTE deployed will take, will they let the tech live out its life cycle or will they actively look to replace it with another "Government Friendly" vendor? swapping out IT equipment can have a big impact on the budget of smaller companies.
Yes, the Chinese vendors are no doubt furious with this, but they expected it too. Still, by voicing its concerns so publicly, Congress isn't giving much leeway for US IT buyers. I wouldn't want to be on the wrong side of my government if I were buying IT.
Mary, it was definatly an interesting weekend for Huawei (and ZTE) I think that is really going to hurt their sales in the US. Huawei has already gone on the defensive (or attack) saying that the outcome do the comity was per determined and implying that it hurts the C
credibility of the US.
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