(Photo: news.sky.com)

UK follows the US and bans Huawei from 5G network

The UK reverses a prior agreement with Huawei granting the tech company a limited role in building the superfast wireless infrastructure of the UK, banning Huawei in the UK. Cellular network companies in the UK (such as Vodafone and BT) will have until 2027 to completely phase out all existing Huawei equipment and products.

This decision comes after the US enacted sanctions on Huawei in May and reflects some uncertainty working with the tech company. The Digital and Culture Minister, Oliver Dowden says, “Given the uncertainty, this creates around Huawei’s supply chain, the UK can no longer be confident it will be able to guarantee the security of future Huawei 5G equipment.”

The coronavirus (COVID-19) pandemic is also creating more doubt regarding Huawei’s production process with a majority of manufacturing facilities shut down and most experienced a massive delay in production. The imposed US sanctions on Huawei has reduced the company’s ability to obtain and manufacture the American-made semiconductor chips Huawei needs.

BIG: Chinese technology giant #Huawei banned from UK 5G network. Culture Secretary Oliver Dowden: UK Govt is banning the purchase of new Huawei 5G equipment from 31 December and Huawei equipment already in the UK's 5G networks must be removed by 2027. pic.twitter.com/IvdvfKx83Q

— Aditya Raj Kaul (@AdityaRajKaul) July 14, 2020

Since the US declared the sanctions against Huawei, more allies are following and more countries imposing bans or sanctions. The US Secretary of State, Mike Pompeo, says Huawei is used as a monitoring tool for the “Chinese Communist Party’s surveillance state.”

Another delay in bringing 5G to the UK due to Brexit, leaving the UK looking for more trading opportunities and risking backlash from China over the Huawei ban. This ban will be a huge blow to Huawei’s business as they’ve operated in the UK for 20 years and Europe accounted for 24% of Huawei’s sales last year.

The future of Huawei is uncertain but isn’t looking too bright with more countries moving to discontinue business with them.