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Huawei Eyes $2 Billion Cybersecurity Reboot Amid Global Pushback

Huawei may spend at least $2 billion to overhaul its global software systems and reboot its cybersecurity efforts, according to Bloomberg. The company intends to present details about its cybersecurity plans to the British government's National Cyber Security Centre (NCSC) in the next few days.

A cybersecurity business reboot would enable Huawei to revamp its software engineering strategy, Bloomberg reported. As a result, it could help Huawei address fears in Europe that the company's wireless equipment allegedly is susceptible to snooping and hacking.

The Huawei news comes after Meng Wanzhou, the company's CFO and daughter of business founder Ren Zhengfei, was arrested in Canada last week. Wanzhou currently faces extradition to the United States for allegedly violating U.S. trade sanctions against Iran.

What Countries Are Banning Huawei?

Huawei, based in China, has faced allegations worldwide that the technology giant gathers intelligence for the Chinese government.  Huawei, however, has denied those allegations, Al Jazeera reported.

Still, at least four countries have banned Huawei from their fifth-generation (5G) mobile network trials:

  • Australia: The Australian government in August banned Huawei from providing 5G technology.
  • Japan: Japan intends to ban government purchases of equipment from Huawei, Reuters indicated. 
  • New Zealand: New Zealand officials last month announced the country's decision to ban the use of Huawei equipment on its 5G networks.
  • United States: A congressional report indicated that Huawei "fails to comply with U.S. laws," according to Al Jazeera. In addition, U.S. lawmakers have urged AT&T to reconsider any potential deals with Huawei.

Other countries are considering barring the use of Huawei equipment during 5G trials, too. These countries include:

  • Canada.
  • Germany.
  • India.
  • Italy.
  • United Kingdom.

Furthermore, BT Group will remove Huawei equipment from the core of the mobile networks it acquired when it bought operator EE in 2016, Reuters reported. The company also said Huawei equipment had not been used in the core of its fixed-line network.

Huawei offers information and communications technology (ICT) infrastructure and devices. The company provides integrated solutions across telecommunications networks, IT, smart devices and cloud services and recorded annual revenues of roughly $92.5 billion in 2017.

Dan Kobialka

Dan Kobialka is senior contributing editor, MSSP Alert and ChannelE2E. He covers IT security, IT service provider business strategies and partner programs. Dan holds a M.A. in Print and Multimedia Journalism from Emerson College and a B.A. in English from Bridgewater State University. In his free time, Dan enjoys jogging, traveling, playing sports, touring breweries and watching football.