Bloomberg Columnist: Has A 'Smoking Gun' Against Huawei Been Found?

Security concerns surrounding Chinese telecom Huawei Technologies are well-documented.

But concrete evidence that its telecom products are used for spying has been sparse — perhaps until now, according to Bloomberg. 

What Happened

Global telecom company Vodafone Group Plc VOD identified backdoors in its products that would allow Huawei to access its fixed-line network in its home country, Bloomberg said. The company confirmed the validity of a potential vulnerability in a statement to the publication.

Vodafone may have been "giving cover" to Huawei's claims of innocence, and any problem was fixed with no data being compromised, Bloomberg's Tim Culpan said in an opinion piece. Vodafone said it is "not uncommon for vulnerabilities in equipment" to be found and added that it works with suppliers to "resolve it quickly."

Why It's Important

Vodafone may have a financial incentive to downplay the risks from associating with Huawei, Culpan said. Huawei typically beats Western rivals in price, and banning Huawei or fellow China-based ZTE from bidding on projects reduces Western companies' bargaining power.

"Money is a powerful incentive, and a penny saved is a penny earned," Culpan said. 

What's Next

Huawei is likely to claim Vodafone's findings prove nothing and it is innocent of wrongdoing, Culpan said, adding that the Chinese government could also get involved and claim the report is western propaganda.

As has been the case in the past, the financial, political and security-related stakes are "so high" that even a potential smoking gun from Vodafone "may not be enough for a guilty verdict," Culpan concluded.

Related Links:

Pro: Western Allies Need To Avoid Chinese 5G Equipment

First Canada, Now The US: Huawei Brings Lawsuits Worldwide

Public domain photo via Wikimedia.