Huawei, the world's biggest telecoms equipment maker, is facing worldwide scrutiny over its ties with the Chinese government and allegations that Beijing could use its technology for spying, which Huawei denies.
President Donald Trump is expected to sign an executive order banning Chinese telecom equipment from United States wireless networks before a major industry conference at the end of February, three sources told POLITICO, Trend reports referring to South China Morning Post.
According to the United States, China uses Huawei equipment to spy in the West. Huawei is, besides maker of smartphones, worldwide the largest supplier of equipment for telecom networks.
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Huawei has reportedly said it would take three to five years and a $2 billion investment to resolve the security issues found in a British report last year. For example, since Huawei's equipment is not used in the US networks, is the USA having the most secure network?
The warnings seem to have gained some ground in Europe, where it was noted that the Chinese National Intelligence Law of 2017 requiring all firms and individuals at home and overseas to cooperate with the state intelligence agencies.
Mr Ding said in his letter last week that the company "has never and will never" use its equipment to assist espionage activities.
Huawei, the global networks market leader with annual sales exceeding $100 billion, faces worldwide scrutiny over its ties to the Chinese government and suspicion Beijing could use its technology for spying.
"Huawei is a closely watched company", he said.
'Were Huawei ever to engage in malicious behaviour, it would not go unnoticed - and it would certainly destroy our business.
Other countries are carefully monitoring the Huawei situation, with its' chief financial officer Meng Wanzhou, who is the daughter of the company's founder, having been arrested in Canada past year at the request of the U.S. over alleged violations of Iran sanctions. It also recently hit Huawei and its chief financial officer with charges of bank fraud, obstruction of justice and intellectual property theft.
Trump administration officials are still "trying to understand the full range of options", John Costello, director of strategy, policy, and plans at the Cybersecurity and Infrastructure Security Agency, said at the CSIS event.
It said that it was disappointed that there had been a "lack of progress" in tackling previously identified shortcomings.