Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
People work at a construction site of a utility tunnel in Wuhan, central China’s Hubei Province, April 30, 2020. (Xinhua/Xiao Yijiu)
BEIJING, May 1 (Xinhua) — China is getting the world’s largest workforce back to work as the nationwide battle against COVID-19 has secured major strategic achievements.
The unprecedented fight has nurtured new trends in the workplace. For example, more attention is being paid to public health and e-commerce to boost consumption and emerging sectors brought by new applications based on the country’s rapid new infrastructure development of 5G networks and data centers.
In this aerial photo taken on April 29, 2020, representatives of frontline health workers fighting COVID-19 attend a bell-ringing ceremony at the Yellow Crane Tower, or Huanghelou, a landmark in Wuhan, central China’s Hubei Province. (Xinhua/Xiao Yijiu)
ANGELS OF PUBLIC HEALTH
Ye Man, head nurse of gastrointestinal department of Hubei General Hospital East District, one of the five remaining COVID-19 designated hospitals in Wuhan, is taking her first weeklong vacation since January.
The 34-year-old mother of two started to take a week off on Monday, one day after her hospital cleared all remaining confirmed COVID-19 patients. The nine ICU wards in her hospital had been kept occupied over the past several months.
Friday marked International Workers’ Day, and the start of China’s five-day public holiday. Ye said she planned to visit urban parks with her family during the holiday.
At her busiest point, she and her colleagues took care of a ward filled with 40 COVID-19 patients.
“It was a really tough time,” she recalled. She had to wear a protective gown and a mask for nine hours a day and be separated from her family to avoid possible cross-infections.
Wuhan, capital of central China’s Hubei Province and once hard hit by COVID-19, cleared all confirmed cases in hospitals on April 26. Over 42,000 medical workers mobilized nationwide to aid Hubei have contributed to achieving a decisive outcome in the fight to defend Hubei and Wuhan.
In an inspection tour to Wuhan on March 10, President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, lauded medical workers as “the most beautiful angels” and “messengers of light and hope.”
To reward brave and dedicated medics, major tourist sites in Hubei are offering free entry to medical staff over the following two years.
Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, learns about development of the black fungus industry in Jinmi Village of Xiaoling Township in Zhashui County, Shangluo City, northwest China’s Shaanxi Province, April 20, 2020. (Xinhua/Xie Huanchi)
LIVESTREAMING ANCHORS
“We have a new batch of supplies today. Those who did not get the goods should hurry to buy now,” said Li Xuying, a livestreaming anchorwoman selling agaric mushrooms in Zhashui, a small county deep in the Qinling Mountains in northwest China’s Shaanxi Province.
Li has been prepared for a boom of online shopping in the holiday, because online buyers rushed to her livestreaming website to place orders, after Xi inspected the county and chatted with her in the village of Jinmi during a recent tour to Shaanxi.
“I used to sell goods worth about 50,000 yuan (7,070 U.S. dollars) on average after a six-hour livestreaming session. Now the sales are 10 times that,” she said.
Li was one of the 10 sales staff sent by the local agricultural e-commerce firm to Chinese e-commerce platform Taobao’s headquarters for livestreaming training. She said livestreaming is effective in bridging buyers and farmers, through which viewers can watch planting and harvesting online.
With the number of netizens in China reaching 904 million in March, e-commerce has been one of the popular means of promoting the sale of farm produce and helping farmers shake off poverty. Despite the impact of COVID-19, the country is determined to eradicate absolute poverty by the end of this year.
Workers work at the construction site of a 5G base station at Chongqing Hi-tech Zone in Chongqing, southwest China, April 15, 2020. (Xinhua/Wang Quanchao)
HI-TECH WORKERS IN “NEW INFRASTRUCTURE” BUILDING
As an elasticity calculation engineer of Alibaba Cloud, Zhao Kun and his colleagues always stay on alert for high data flow, for example, brought by the anticipated online shopping spike during the holiday.
“The profession, which may sound obscure, is actually closely connected to everyone’s life, as cloud computing is the infrastructure supporting high-tech applications of artificial intelligence and blockchain,” said Zhao.
The Chinese leadership has underscored expediting “new infrastructure” development to boost industrial and consumption upgrading and catalyze new growth drivers.
Seizing the opportunities of industrial digitization and digital industrialization, China needs to expedite the construction of “new infrastructure” projects such as 5G networks and data centers, and deploy strategic emerging sectors and industries of the future including the digital economy, life health services and new materials, President Xi has said.
During the epidemic, Zhao and his colleagues expanded more than 100,000 cloud servers to ensure the stable operation of “cloud classrooms” and “cloud offices” for millions of people working and studying from home.
In the “new infrastructure” building, people like Zhao contribute to constructing the virtual infrastructure of an ecosystem, which enables e-commerce, e-payment, online teaching and the digital transformation of manufacturing and supply chain management.
In early April, China released a plan on promoting the transformation of enterprises toward digitalization and intelligence by further expanding the application of cloud and data technologies, to nurture new business models of the digital economy.
Chinese Vice Premier Han Zheng, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, addresses a teleconference on the construction of major projects and stabilizing investment in Beijing, capital of China, March 26, 2020. (Xinhua/Ding Lin)
BEIJING, March 26 (Xinhua) — Chinese Vice Premier Han Zheng on Thursday called for efforts to advance the construction of major projects and give full play to investment in stabilizing economic growth.
Accurate measures should be taken to solve the problems of labor shortage, transportation and supply of raw materials to accelerate the normal operation of key projects, Han said while addressing a teleconference on the construction of major projects and stabilizing investment.
Han said financial support such as local special bonds should prioritize key areas and major projects. The construction of “new infrastructure” projects such as 5G networks should be strongly encouraged to ramp up new business modes such as the digital economy.
He also urged efforts to ensure the use of land and sea of key projects, streamline project approval procedures and strengthen project management.
More work should be done to implement key foreign-funded projects, speed up the introduction of policies for further opening-up and continue optimizing the business environment, he added.
In response to the 2008 global financial crisis, China pumped a 4 trillion yuan (US$575 billion) into its economy but it led to a mountain of local government debt
Various early indicators suggest China’s economy will slow in the first quarter of 2020, with some suggestions it will suffer a first contraction since 1976
President Xi Jinping said China must accelerate construction of “new infrastructures such as 5G networks and data centres” on top of speeding up “key projects and major infrastructure construction” in response to the economic impact caused by the coronavirus outbreak. Photo: Xinhua
China should not try to bolster its coronavirus-hit economy by again resorting to a massive debt-fuelled fiscal and monetary stimulus programme, according to a group of government advisers.
Various early indicators suggest China’s economy will slow in the first quarter of 2020, with some even suggesting it will suffer a first contraction since the end of the Cultural Revolution in 1976.
This raises the question if China will miss its key 2020 growth target, with voices on both sides of the debate discussing what stimulus policies are needed to offset the deep impact of the coronavirus.
China is already leaning towards some additional stimulus, with Premier Li Keqiang ordering the central bank pump additional money into the banking system, while President Xi Jinping has announced the need for more spending on “new infrastructure”.
Are there other ways out for China except stimulus policies?Liu Shijin
“Are there other ways out for China except stimulus policies?” rhetorically asked Liu Shijin, who previously worked closely with Vice-Premier Liu He, the top economic aide to Xi, at the Development Research Centre, the think tank attached to the State Council.
“If it really works, why can’t Japan and the United States reach a 5 per cent growth rate?”
It is believed China will need to achieve an average 5.6 per cent growth in 2020 to achieve its goal of doubling the size of its economy from 2010, which is a key goal for
China’s economy grew by 6.1 per cent in 2019, and while it was the slowest in 29 years, the US economy only grew 2.3 per cent, with Japan’s estimated to grow by 0.9 per cent.
What is gross domestic product (GDP)?
Liu Shijin, who is now a deputy head of the China Development Research Foundation and a policy adviser to the People’s Bank of China, argued that a growth rate averaging 5 per cent over the next decade is sufficient for China to meet its development goals.
Growth in 2020, though, may well be below 5 per cent given that the impact of the coronavirus is “unprecedented” and larger than both severe acute respiratory syndrome (Sars) in 2003 and the 2008 global financial crisis.
Xi said earlier this month that China must accelerate construction of “new infrastructures such as 5G networks and data centres” on top of speeding up “key projects and major infrastructure construction already included in state plans” like additional high-speed railway lines in response to the economic impact caused by the coronavirus outbreak.
But as this will mainly rely on corporate and private investment, Liu Shijin feels it will be too small to engineer a major rebound in the growth rate.
When encountering challenges, we should first push forward new reform measures to unleash growth potential. Now is the right timeLiu Shijin
“It’s a different thing compared to real [government-led] economic stabilisation,” Liu Shijin told a web seminar hosted by Peking University’s National School of Development on Wednesday.
“When encountering challenges, we should first push forward new reform measures to unleash growth potential. Now is the right time.”
Instead, to support longer-term growth, China should put its efforts into the development of its “city clusters”, which could lead to higher spending on housing construction, urban infrastructure and manufacturing, added Liu Shijin, which would increase the growth rate by up to an additional percentage point over the next decade.
China has so far refrained from the massive stimulus programme it adopted in 2008 in response to the global financial crisis, which included a 4 trillion yuan (US$575 billion) plan that pumped cheap money into government-backed projects but also created a mountain of local government debt.
Trump bans travel from Europe to the US as coronavirus pandemic hits actor Tom Hanks and the NBA
Zhang Bin, a senior researcher at the Chinese Academy of Social Sciences, said infrastructure construction will remain an important part of any plan to support growth.
“If the funding [for the 4 trillion yuan stimulus] had come solely from treasury bonds or local government bonds [rather than risky lending], there wouldn’t be so much shadow banking, unmanageable credit expansion, high leverage, implicit liabilities or financial risks,” he said.
“If the balance sheets of corporations, households and local governments can’t be repaired, it might lead to insufficient demand and a decline into a vicious [downward] cycle.”
Zhang, like Liu Shijin, is a key member of the China Finance 40 Forum, a group of state economists who advocate more structural reforms to support the Chinese economy. In particular, Zhang has set sights on reforms that would boost consumption, which accounted for 58 per cent of Chinese growth last year.
“The biggest weak link of the Chinese economy is that 200 to 300 million migrant workers can’t [legally] settle in big cities,” he said. “Only if they are able to settle in the city that China can be called a real well-off society. It will also boost the economy, lift demand for manufactured goods and unleashed consumption potential.”
Currently, most large Chinese cities only provide social services including health care and schooling to residents who have a legal permit, or hukou. Most migrant workers who come to the big cities for jobs are blocked from obtaining a hukou, meaning they have to travel back to their rural hometowns to have access to basic social services, so often do not settle in their adopted city.
In response to this idea, Xu Yuan, a professor at Peking University, called for the government to build 10 million affordable housing units annually to accommodate new urban citizens, which would address short-term economic pain and serve the nation’s long-term development.
China will release its annual growth target as well as other key goals, including the fiscal deficit ratio and local bond quota, at the National People’s Congress, although the annual parliamentary convention, previously scheduled for March 5, has been postponed, with a new date yet to be announced.
MUNICH (Reuters) – U.S. Secretary of State Mike Pompeo defended on Saturday his nation’s global role despite misgivings in Europe, vowing that Western values would prevail over China’s desire for “empire”.
Pompeo was seeking to reassure Europeans troubled by U.S. President Donald Trump’s “America first” rhetoric, ambivalence over the transatlantic NATO military alliance and tariffs on European goods.
“I’m happy to report that the death of the transatlantic alliance is grossly exaggerated. The West is winning, and we’re winning together,” he said in a speech at the Munich Security Conference, listing U.S. steps to protect liberal democracies.
RELATED COVERAGE
U.S., allied firms testing alternatives to Chinese 5G technology – Esper
Pompeo was, in part, responding to German President Frank-Walter Steinmeier, who on Friday accused the United States, Russia and China of stoking global mistrust.
Trump’s decision to pull out of the 2015 Iran nuclear deal, as well as the Paris climate accord, have undermined European priorities, while moves such as recognition of Jerusalem as Israel’s capital have weakened European diplomacy, envoys say.
Pompeo defended the U.S. strategy, saying Europe, Japan and other American allies were united on China, Iran and Russia, despite “tactical differences.”
He reiterated Washington’s opposition to the Nord Stream 2 gas pipeline under construction between Russia and Germany under the Baltic Sea, a project backed by the government of German Chancellor Angela Merkel.
Citing Russia’s 2014 annexation of Crimea, cyber threats in Iran and economic coercion by China, Pompeo said those countries were still “desiring empires” and destabilising the rules-based international system.
U.S. Secretary of Defense Mark Esper, speaking immediately after Pompeo, focused his remarks solely on China, accusing Beijing of a “nefarious strategy” through telecommunications firm Huawei [HWT.UL].
“It is essential that we as an international community wake up to the challenges presented by Chinese manipulation of the long-standing international rules-based order,” Esper said.
He said it was not too late for Britain, which last month said it would allow Huawei a limited role in building its 5G networks, to take “two steps back,” but added he still needed to asses London’s decision.
“We could have a win-win strategy if we just abide by the international rules that have been set in place for decades … that respect human rights, that respect sovereignty,” he said.
Those accused Huawei of violating US sanctions and stealing technology from T-Mobile. Huawei has denied the claims.
The firm, one of the world’s biggest smartphone makers, said the US is targeting it because its expansion is a threat to American business interests.
Meng Wanzhou, its chief financial officer and the daughter of the company’s founder, is still being held in Canada where she is fighting extradition to the US.
She is wanted there on charges of fraud and sanctions violations – claims she denies.
Image copyright AFPImage caption Meng Wanzhou was arrested during a layover in Vancouver in 2018
“This new indictment is part of the Justice Department’s attempt to irrevocably damage Huawei’s reputation and its business for reasons related to competition rather than law enforcement,” the company said.
In the updated indictment, the US accuses Huawei of racketeering and trade secret theft, and gives more detail about the firm’s efforts to evade US rules on doing business with Iran and North Korea.
Prosecutors also said Huawei offered bonuses to staff who obtained “confidential information” from its competitors.
“As a consequence of its campaign to steal this technology and intellectual property, Huawei was able to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage,” prosecutors said.
Huawei said the new charges are a “contrived repackaging” of claims that have already been litigated in civil court.
“The government will not prevail on these charges which we will prove to be both unfounded and unfair,” the company said.
The new charges, filed in federal court in Brooklyn on Thursday, suggest the US is not backing away from its fight over Huawei, which has added to tensions between the US and China, and complicated American relationships with allies.
The US has pushed partners such as the UK to ban Huawei technology from their networks, maintaining the company’s equipment could be used for spying by China.
Chinese president also called for the three nations to uphold multilateralism in talks with Vladimir Putin and Narendra Modi in Osaka
In a separate meeting with other BRICS leaders, he said Beijing opposed ‘illegal and unilateral sanctions’ and ‘long-arm jurisdiction’
(From left) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese leader Xi Jinping meet on the sidelines of the G20 summit in Osaka, Japan, on Friday. Photo: EPA-EFE
Chinese President Xi Jinping on Friday called on the leaders of Russia and India to take “global responsibility” to safeguard the three countries’ interests and uphold multilateralism, as Beijing seeks to rally support amid its protracted trade war with Washington.
Xi made the remarks during a trilateral meeting with Vladimir Putin and Narendra Modi on the sidelines of the annual
with US President Donald Trump, seeking to reach a truce on the year-long trade conflict between the world’s two biggest economies.
“The rise of protectionism and unilateralism has severely affected global stability and economic growth, as well as the existing international order which emerging economies and developing countries have relied on,” Xi was quoted as saying by state broadcaster CCTV.
“China, Russia and India should take on global responsibility to safeguard the fundamental and long-term interests of these three countries and the world,” he said.
Xi also called for the nations to promote “a more multipolar world and the democratisation of international relations” – meaning with less reliance on a US-led world order.
During a meeting with leaders of the other BRICS countries – major emerging economies Brazil, Russia, India, China and South Africa – Xi also said Beijing opposed what it saw as “illegal and unilateral sanctions” and “long-arm jurisdiction”.
The efforts to forge closer ties among China, Russia and India come as all three nations are locked in disputes with the United States.
New Delhi, a key strategic ally in Washington’s Indo-Pacific policy to contain China’s rise, has been upset over tariffs imposed on Indian goods by the Trump administration. Meanwhile, geopolitical rivalry and the Kremlin’s alleged meddling in US elections has strained relations between Moscow and Washington.
Beneath the smiles and handshakes, tensions simmer as world leaders meet for G20
Wu Jianghao, director general of the Chinese foreign ministry’s Asian affairs department, said the trilateral meeting laid out a framework for future cooperation.
“The three countries have spoken with one voice on some major global issues, helping stability and injecting positive energy to the current international situation – which is filled with instability and uncertainties,” Wu said at a briefing on Friday.
Wu said that the leaders did not talk about Huawei Technologies or 5G networks, but that the three countries had maintained good communication on telecoms issues and would continue to cooperate.
Washington has banned US companies from selling American technology to Huawei and put pressure on its allies to block the Chinese tech firm over security concerns.
(From left) US President Donald Trump, Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi pose for a photo before their meeting. Photo: AP
Meanwhile, the United States is also seeking to build ties with India, with Trump holding trilateral talks with Modi and Japanese Prime Minister Shinzo Abe on Friday.
Indian Foreign Secretary Vijay Gokhale described that trilateral meeting as “very good”, saying it was “short but very productive”.
“The main topic of discussion was the Indo-Pacific, about how the three countries could work together in terms of connectivity, infrastructure and ensuring that peace and stability is maintained, and working together to build upon this new concept so that it would benefit the region as a whole and the three countries,” Gokhale said.
On the Modi-Trump bilateral meeting, he said the two leaders had “a very warm discussion”. They also briefly discussed 5G, with the focus on business cooperation between the two countries to leverage their technology and the potential of the Indian market, according to Gokhale.
He said the discussion of how to develop 5G networks was “in terms of business, not in terms of governments”. “It’s an exciting new area that India and the US can work together [on],” he said.
Huang Kunming, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, also head of the Publicity Department of the CPC Central Committee, speaks at the opening ceremony of the second Digital China Summit in Fuzhou, southeast China’s Fujian Province, May 6, 2019. (Xinhua/Ding Lin)
FUZHOU, May 6 (Xinhua) — China on Monday sounded another heartening note for its development of information technologies, as both companies and the government rush to harness the nationwide tech boom to raise efficiency, buoy public satisfaction and even tackle corruption.
The second Digital China Summit opened Monday in eastern China’s Fujian Province, shedding light on the latest information technologies that have penetrated the country’s government, industries and society.
The Chinese government has expected information technologies to nurture new economic engines and upgrade old industries as the country shunts from the high-speed economic growth to the path of high-quality development.
Huang Kunming, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, in a keynote speech at the summit called for advancing the building of a digital China and smart society, stressing the role of information technology in promoting high-quality development.
Huang, also head of the Publicity Department of the CPC Central Committee, said China’s advantages in internet technology innovation, technology application and as a huge market should be transformed into advantages in developing a digital economy.
The official called for achieving breakthroughs in core technologies, enhancing protection of intellectual property rights, advancing information infrastructure construction and narrowing digital gaps between urban and rural areas.
A report reviewing the country’s digital development in 2018 was also issued at the summit, pointing to rapid growth in sectors including electronic information manufacturing, software service, communications and big data.
The report published by the Cyberspace Administration of China said the country last year recorded more than 9 trillion yuan (1.3 trillion U.S. dollars) in online retail. China’s digital economy reached 31.3 trillion yuan in scale, accounting for one-third of the national GDP in 2018.
Provincial-level e-government platforms have also slashed time for getting government permits by an average of 30 percent, noted the report.
Trendy technologies from driverless vendor vehicles and facial recognition security checks to 5G networks are being used at the event in the city of Fuzhou. A number of tech companies are displaying their cutting-edge products including Baidu’s driverless vehicles, Huawei’s AI chip “Ascend” and Foxconn’s “future factories.”
Pony Ma, CEO of China’s Internet giant Tencent, said at the summit that the company, by working with Fujian police, has used its facial recognition technology to help 1,000 families find missing family members in the past two years.
Hu Xiaoming, president of Ant Financial that runs the popular online payment network Alipay, said at the event that one of every four Chinese now handles government services on Alipay, making it the country’s largest platform that offers access to government services.
E-GOVERNMENT
One of the major highlights at the summit’s exhibition area are the many e-government apps, which have mushroomed across China to incorporate a wide range of government and public services. They are part of the government’s efforts to cut red tape to benefit residents and businesses alike.
In Fuzhou, the host city of the event, a citizen’s typical day now revolves around the e-Fuzhou app, which allows users to buy bus tickets, pay tuition fees and manage social security accounts without the need of visiting government offices.
A slew of digital technology applications, including the big data credit inquiry system, the online tax bureau, and the paperless customs clearance system, have also been developed in the province over the years.
Dingxi, one of the least developed cities in west China’s Gansu Province, has a booth displaying an online monitoring platform, which it launched last year to allow villagers to scrutinize the management of poverty-relief funds and report any signs of corruption.
“We went door-to-door to teach villagers how to use mobile phones to check the subsidies they are entitled to and the sum other families actually received,” said Yang Sirun, an inspector with the city’s discipline inspection commission.
“In the past, some wealthy families feigned poverty to claim subsistence allowances, while some officials fraudulently pocketed subsidies in the names of families that had moved away. The new platform can easily expose such ‘micro corruption,'” Yang said.
The official said since its launch, over 3,400 officials and residents have voluntarily turned in their illegal gains for fear of being reported. “Many hidden problems were also found during the collation of data from different departments, which proves big data’s power in fighting corruption,” he said.
The summit from May 6 to 8 aims to serve as a platform for issuing China’s policies on IT development and displaying the achievements and experience of e-government and the digital economy.
More than 1,500 officials, company representatives and scholars are attending the event, which is co-organized by the Cyberspace Administration of China, National Development and Reform Commission, Ministry of Industry and Information Technology and Fujian provincial government.
BEIJING, March 13 (Xinhua) — China’s emerging industries will become a major driving force for investment growth this year, the Economic Information Daily reported Wednesday.
China will increase policy support for and infrastructure investment in emerging industries in 2019, including commercial applications of 5G, artificial intelligence, industrial internet and internet of things, according to the National Development and Reform Commission (NDRC).
The country will cultivate emerging industrial clusters with market influence and distinctive advantages that can vigorously drive regional economic transformation, the newspaper quoted Ren Zhiwu, deputy secretary-general of the NDRC, as saying.
The Ministry of Industry and Information Technology also plans to promote the deep integration of the internet, big data and artificial intelligence with the real economy, and encourage innovation in new technologies and new forms of industry, the newspaper said.
Local governments will also step up support for strategic emerging industries in financial aid, technological innovation and the business environment. Efforts should be made to improve strategic emerging industries’ capabilities to innovate, said the newspaper.
(Reuters) – British security officials do not support a full ban of Huawei from national telecoms networks despite U.S. allegations the Chinese firm and its products could be used by Beijing for spying, people with knowledge of the matter said.
Huawei, the world’s biggest producer of telecoms equipment, faces intense scrutiny in the West over its relationship with the Chinese government and allegations of enabling state espionage, with the United States calling for its allies not to use its technology.
Although no evidence has been produced publicly and Huawei has denied the claims, the allegations have led several Western countries to restrict its access to their markets.
“We don’t favour a complete ban. It’s not that simple,” one of the sources told Reuters on Monday after a Financial Times report on Sunday said that Britain had decided it could mitigate the risks of using Huawei equipment in 5G networks.
The FT cited two sources familiar with what it said was a conclusion by the government’s National Cyber Security Council (NCSC), which last year said technical and supply-chain issues with Huawei’s equipment had exposed national telecom networks to new security risks. Huawei had no immediate comment.
Any decision to allow Huawei to participate in building next-generation 5G networks would be closely watched by other nations, because of Britain’s membership of the Five Eyes intelligence-sharing group with the United States.
Britain is an important market for Huawei and last month Vodafone, the world’s second-largest mobile operator, said it was “pausing” the deployment of its equipment in core networks until Western governments give the Chinese firm full security clearance.
Other operators in Europe, including Britain’s BT and France’s Orange have already removed Huawei’s equipment or taken steps to limit its future use.
Two sources said the NCSC did not think it was necessary to completely bar Huawei from British networks, believing it could continue to manage any risks by testing the products at a special laboratory overseen by intelligence officials.
Both sources, who spoke on condition of anonymity because of the sensitivity of the matter, said the position was consistent with public statements made by the NCSC and British officials.
“As was made clear in July’s HCSEC oversight board, the NCSC has concerns around Huawei’s engineering and security capabilities. We have set out the improvements we expect the company to make, an NCSC spokeswoman said on Monday.
CONFIDENCE MEASURES
People with knowledge of the matter said the next NCSC report on Huawei’s position in Britain will criticise its slow response to issues raised in last year’s report and detail tense relations with British officials.
The report, which is expected to be released in coming weeks, does not itself set government policy.
The results of a government review of British telecoms infrastructure is expected later in the year and will include recommendations on managing security risks, including in future 5G networks.
Fellow Five Eyes member Australia has banned Huawei from supplying 5G equipment, while New Zealand said on Monday it would make its own independent assessment of the risk of using Huawei equipment in 5G networks.
Huawei has set up security labs in Britain and Germany aimed at building confidence that its equipment does not contain “back doors” for Chinese intelligence services.
It has also offered to build a cyber-security centre in Poland, where authorities have arrested a Chinese Huawei employee along with an ex-Polish security official.
CHINDIA ALERT: You'll be living in their world, very soon 