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Huawei to spend $2 billion more than five years in cybersecurity push

HONG KONG (Reuters) – Huawei Technologies [HWT.UL] on Tuesday said it would spend $2 billion over the next 5 years to focus on cybersecurity by adding more people and the upgrading of lab facilities, such as fighting global concern about the risks associated with the network gear. The usually secret Chinese technology giant the comments on one of his most in-depth press conferences at Dongguan offices, after about two dozen international journalists in its new campus in the southern Chinese city.

People walk past the stall of the telecommunications-equipment maker Huawei Technologies at Security China 2018 exhibition on public security in Beijing, China, 23 October, 2018. REUTERS/Thomas Peter

Huawei has been in the news in recent weeks for the arrest of the chief financial officer Meng Wanzhou also the daughter of the billionaire and founder Ren Zhengfei in Canada at the request of the United States.

This has aggravated the misery of the Chinese company, which has already been virtually eliminated from the U.S. market and was banned by Australia and New Zealand, from the build of 5G networks in the middle of sure his gear could facilitate Chinese espionage.

“The blocking of competitors from a field of play can better yourself. We think that all the problems or the allegations about the security at Huawei should be based on factual evidence,” the rotating chairman Ken Hu said. “Without actual evidence that we do not accept and we oppose these allegations.”

Huawei is the communication with governments all over the world with regard to the independence of the operation, he said. He added that Japan and France had not formally prohibited the telecom equipment. Recent media reports have indicated moves by this government to avoid the company’s equipment.

Sources told Reuters that Japan planned to ban government purchases of equipment.

Other media reported that the country’s three top companies planned not to make use of the current equipment and upcoming 5G gear from Huawei, and that France is considering adding items to the “great warning” list, which tacitly targets Huawei.

Huawei has repeatedly said Beijing has no influence on this.

In the tour of Huawei’s Shenzhen headquarters on Tuesday, journalists glimpse of some of Huawei’s most advanced R&D laboratories housed in a three storey building with white façade and the four columns, referred to by insiders as the “White House”.

Wu said Huawei had secured more than 25 commercial contracts for 5G, slightly above the 22 Chinese technology giant had announced in November.

The company has delivered more than 10,000 base stations for the fifth generation of mobile communications, he said, adding that Huawei expects to have a turnover of more than $100 billion this year, up 8.7 percent from last year.

Huawei is the world’s largest supplier of telecommunications equipment in the network and the second largest manufacturer of smartphones, and in contrast to other major Chinese technology companies, derives half its revenue from abroad.

“A JUST CONCLUSION”

Wu said on Tuesday, Huawei was looking for “a just conclusion” in the case of Meng, who was arrested in Vancouver on Dec. 1 after the U.S. officials of the alleged Huawei trying to use the banks to evade the sanctions against Iran, and moving money out.

FILE PHOTO: A man walks past a sign of Huawei at the CES (Consumer Electronics Show) Asia 2018 in Shanghai, China, June 14, 2018. REUTERS/Aly Song/File Photo

She is in anticipation of his possible extradition to the United States in a case that has roiled the global markets amidst concerns would be exacerbated by the tensions between the United States and China, already strained over trade.

Mix the 46-year-old daughter of Ren, has said in a sworn statement she is innocent and will contest the allegations against her at trial if she is at the mercy of the United States.

Wu said: Mix the arrest has had no impact on the travel of the company’s directors.

Reporting by Sijia Jiang and Anne Marie Roantree in writing by Sayantani Ghosh; Editing by with the ipad has Himani

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