In January 2020, the UK allowed Huawei to expand their wireless technology coverage in the country despite the US making moves on banning all Chinese-developed technology and products due to threats on national security. But just recently, UK has decided to follow suit by banning Huawei technology from the country.
The UK government told the telecommunication companies BTGOF and Vodafone last Tuesday, July 14, that they have until the year 2027 to eradicate all Huawei products from their network. Apparently, the government grew concerned after the move made by the United States against Huawei last May. They were sad that with all the allegations that surround the Chinese company, the UK can no longer remain complacent especially with regards to the safety and security of the country.
Huawei is a major company that contributes to the development of 5G connections, and being pulled out from the UK will impact the country's endeavors to establish a 5G network. With the suspicions on Huawei's connection to China, the UK government is led to believe that integrating a Chinese-based technology will compromise the security and privacy of their nation's information.
And since the US has been continually seeking allies against Huawei, the Trump administration considers this as progress in the plight to expose Huawei’s conspiracy with the Communist Party in China, which the Chinese tech company has repeatedly denied. But this move by the British government could endanger their relations with the Chinese government especially when they are actively in search for trade partnerships after the UK officially excluded itself from the European Union.
Huawei will indeed take a huge hit on its manufacture and distribution. Being banned from the US poses difficulty in their procurement of semiconductor chips from an American company. Huawei has also built their name in Britain for a span of 2 decades, and now lost its potential market in the country. The smartphone company has reported a decline in sales, and markets outside China have lost interest in the brand.