The Rise of Huawei: Low-Cost Routers Stoke Fears of Cyber Espionage
By Karla Robinson
August 10, 2012
August 10, 2012
- Huawei is a private $32 billion business that supplies 140 countries with inexpensive telecom equipment, recently outpacing Sweden’s Ericsson for the “world’s largest telecom equipment maker” title.
- For some, its success ignites fear. “Westerners fret that the networks the firm is building are used by Chinese spooks to eavesdrop during peacetime and could be shut down suddenly during wartime,” reports The Economist. “They see the firm as a potent weapon in China’s burgeoning cyber-arsenal.”
- “Western governments are also suspicious of the subsidies, low-interest loans and generous export credits lavished on favored champions, including Huawei,” the article continues.
- The Economist validates some concerns of telecom security, noting Huawei’s position is ideal for sneaking malware in and sensitive data out through its networks. The article also notes reports of Chinese state-sponsored hackers who have targeted Western commercial secrets.
- However, the article warns against blocking Huawei and imports, which could hurt competition and growth. Also, most telecom equipment comes from China today.
- “The answer is to insist on greater scrutiny all round, not just of Chinese firms,” the article suggests. “Governments should be crystal clear about what conditions telecoms firms need to meet to win business — something America’s secretive security-review process does not do today. They should also do more to ensure that equipment is secure, no matter who makes it.”
- “Such scrutiny will drive up costs, but these pale in comparison with those imposed by bans on Chinese firms, which diminish competition and push up prices,” the article states, adding that Huawei could also reduce worries with improved openness.
- For more information, see related articles: The Company that Spooked the World (The Economist, 8/4/12), Huawei Routers are Riddled with Vulnerabilities (CNET, 7/30/12).
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