China warns UK that banning Huawei will cost it dearly

Boris Johnson, Donald J Trump

China has warned UK Prime Minister Boris Johnson that his decision to ban Huawei from the 5G network would cost Britain dearly in investment, casting the move as the result of politicised pressure from US President Donald J Trump.

KEY POINTS:

  • China warns UK Prime Minister Boris Johnson that banning Huawei will cost the country dearly in terms of investment
  • China is seeking to paint the move as a sign of weakness in the UK
  • The UK have grown sceptical of Huawei with many lawmakers actively pushing for an immediate and total ban

Hours after Johnson ordered Huawei equipment to be purged from the nascent 5G network by the end of 2027, Trump claimed credit for the decision and said that if countries wanted to do business with the United States they should block Huawei.

But China, whose $15 trillion economy is five times the size of Britain’s, warned the decision would hurt investment as Chinese companies had watched as London “dumped” the national telecoms champion.

“Now I would even say this is not only disappointing – this is disheartening,” Chinese Ambassador Liu Xiaoming told the Centre for European Reform, adding that Britain had “simply dumped this company”.

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“The way you are treating Huawei is being followed very closely by other Chinese businesses, and it will be very difficult for other businesses to have the confidence to have more investment,” he said.

In Beijing, the foreign ministry cast the UK as “a relatively small place” that was becoming subservient of the US.

“Does the UK want to maintain its independent status or be reduced to being a vassal of the United States, be the US’s cats paw?” Chinese foreign ministry spokeswoman Hua Chunying said.

“The safety of Chinese investment in the UK is being greatly threatened.”

CHINESE MONEY

Britain has become increasingly reliant on Chinese imports. Some 9% of all goods imported into Britain in 2018 – worth 43 billion pounds ($54 billion) – came from China, double the proportion from 15 years earlier.

But UK companies have also invested increasingly in China. Between 2013 and 2018, they more than doubled their investment position in the world’s No.2 economy to 16 billion pounds, according to official British data.

By contrast, Chinese investment in British companies stood at 1.8 billion pounds in 2018 – far below that of the United States, which is the biggest single foreign investor in Britain.

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Trump identifies China as the United States’ main geopolitical rival, and has accused the Communist Party-ruled state of taking advantage over trade and not telling the truth over the novel coronavirus outbreak, which he calls the “China plague”.

Washington and its allies say Huawei technology could be used to spy for China. Huawei has denied this.

“We convinced many countries, many countries – I did this myself for the most part – not to use Huawei, because we think it’s an unsafe security risk, it’s a big security risk,” Trump told reporters in the White House Rose Garden on Tuesday.

“I talked many countries out of using it: if they want to do business with us, they can’t use it. Just today, I believe that UK announced that they’re not going to be using it.”

Britain has said that its ban on Huawei is motivated by its own security concerns and by worries that supplies of Huawei gear could be interrupted by US sanctions.

It denied that Trump alone was responsible for the Huawei ban. Asked about the comments, British Health Secretary Matt Hancock said: “Well, we all know Donald J Trump, don’t we.”

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The team at Platform Executive hope you have enjoyed the ‘China warns UK that banning Huawei will cost it dearly‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Guy Faulconbridge in London and Martin Pollard in Beijing. Editing by Michael Holden, Alex Richardson and Peter Graff.

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