ISY10212 UK Reverses Approval to Huawei Assignment Sample

Contemporary Issues Information Technology

Since its establishment in 1987, Huawei, a multinational technology corporation headquartered in Shenzhen, China, has experienced stratospheric growth, in relation to both business success and international presence. While Huawei started out as a Chinese foreign-made local reseller of telephone switches, it heavily invested in internal research and development and swiftly switched to self-designed equipment production. Huawei's revenue rose progressively during the 1990s (Zaamout, Alton and Houlden 2019), leading gradually to rapid growth into the global market.

Furthermore. Huawei is a strong brand with global scope and international recognition. Huawei 's chief profit-driving business items are the consumer division (mobile phones, wearable tech & laptops,) and the telecommunications equipment and services, including 5 G technology. Huawei is indeed the leading global provider of telecommunications equipment (Alfayad 2019). After the United Kingdom Government approved Huawei equipment for providing 5G network services, the United States of America introduced a resolution denouncing such a decision of the UK government to permit the Chinese telecommunication group Huawei to invest in Britain's 5G network despite the disapproval from the United States. The United Kingdom’s NSC approved Huawei in the UK Government’s 5G systems (Koltonowski, 2020). Previously, the national security council of the United Kingdom had permitted Huawei a market share of 35% in the 5G infrastructure but it didn’t allow its kit in the sensitive core network (Warrell & Parker, 2020). However, now the national security council of Britain that is NSC headed by Boris Johnson decided to prohibit the purchase of 5G equipment from the end of this year & has also ordered to remove all the existing Huawei equipment by 2027 from the 5G network. (ET India, 2002)

Huawei is a Chinese company that was preparing to pursue 5 G services in the UK. Huawei is dependent on the United States to supply certain essential equipment for 5 G services. But the US has passed economic sanctions prohibiting Huawei from supplying such types of equipment. Because of this, Huawei is not in the position to provide 5 G services in the UK. Huawei 's UK chairman resigned from his post before the government disapproved of Huawei's 5 G services in the UK. The UK Government is also planning to ban all equipment from Huawei by 2027. Despite all these changes, it is thought that for two years the citizens of the United Kingdom will have no 5 G coverage and this question is being debated in the house of commons. It has been stressed in the House of Commons that the UK government did not respond in the month of January when the US and Australian governments warned that Huawei is engaged in spying activities. The second argument is that on the one hand there is criticism of delivering 5 G services but on the other hand there is a continuity of 3G and 4G services offered by Huawei. The third argument that has been addressed in the House of Commons is that by 2027 Huawei will be absolutely removed which means there will be no Huawei services in the UK after 2027 and no new Huawei devices will be available from the end of this year. The overview and substance of the debate in the House of Commons reveal that, right now, the Government of the United Kingdom has agreed to avoid Huawei 's entry for 5 G services, which are facing economic sanctions from the United States of America, while 3 G and 4 G services offered by Huawei, which are already in existence, will continue and Huawei will not be in the country for giving any services in telecom sector by the end of 2027 (Bourke, 2020).

References for UK Reverses Approval to Huawei on 5G

Alfayad, F. 2019. Huawei and the gulf region: Market opportunities despite the ongoing US-China trade war. International Review of Management and Marketing. 9(4). pp. 47-53. DOI:10.32479/irmm.8206.

Bourke, L. 2020. UK reverses approval to Huawei on 5G. [Online]. Available at: https://www.smh.com.au/world/europe/uk-reverses-approval-to-huawei-on-5g-20200714-p55c1u.html

[Accessed on August 7, 2020]

ET India. 2020. United Kingdom to purge Huawei from 5G by 2027, angering China and pleasing Trump. [Online]. Available at: https://economictimes.indiatimes.com/news/international/business/united-kingdom-to-purge-huawei-from-5g-by-2027-angering-china-and-pleasing-trump/articleshow/76960788.cms

[Accessed on August 7, 2020]

Koltonowski, A. 2020. House resolution condemns UK approval of Huawei in 5g networks. [Online]. Available at: https://www.jurist.org/news/2020/02/house-resolution-condemns-uk-approval-of-huawei-in-5g-networks/

[Accessed on August 7, 2020]

Warrell, H. and Parker, G. 2020. US attacks UK’s decision on Huawei. [Online]. Available at: https://www.ft.com/content/e3d38d0e-41c5-11ea-a047-eae9bd51ceba

[Accessed on August 7, 2020]

Zaamout, N., Alton, T. and Houlden, G. 2019. Examining Huawei's growth & global reach: Key implications, issues, and the Canadian connection. DOI:10.13140/RG.2.2.24517.19683.

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