Amidst the on-going US trade ban and the US-China trade wars, Huawei CEO has revealed plans of selling their 5G Technology. Ren Zhengfei stated the buyer should probably come from the West and not in Asia.
Talking to the Economist, Huawei’s CEO stated that 5G had been a pivotal growth to the company’s revenue, and he is ready to share the business. The buyer would be able to have access to Huawei’s existing 5G patents, licenses, code, technical blueprints, and even production expertise.
For assurance, the buyer will also be able to modify the source code and develop new equipment independently, thus denying access to the new telco equipment made to both Huawei and even the Chinese government.
Huawei’s CEO says that the move is aimed to “create a balanced situation between China, the US, and Europe.” According to Ren, “balanced distribution of interests is conducive to Huawei’s survival.”
Rhen Zhengfei did not reveal on the possible amount of the buyout. Despite the on-going sanctions in the US, Huawei’s last report on the number of 5G commercial contracts acquired indicated the company is still ahead globally.
Speaking of Huawei’s “genuine proposal,” Hosuk Lee-Makiyama, from the European Centre for International Political Economy responded to the BBC stating Huawei misunderstands the root of its problems. Hosuk says the trustworthiness of Huawei independently as a software vendor is not the problem here, but rather, the legal obligations imposed to them by their local government.
Some analyst also think the Huawei licensed to a US company will still fall under the legal obligations, and there is no way the licensing entity or intelligence agencies could “scrutinize millions of lines of code for potential backdoors.”
Huawei, the largest supplier of telco equipment in the world, was banned in the US over claims that the company’s telco equipment could be used for espionage by the Chinese government. The US has urged other countries to follow suit as well. However, apart from the US, Australia was the second country to ban the use of Huawei’s telco equipment.
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