Published: Wed, June 05, 2019
Finance | By Kristine Clayton

Huawei to sell undersea cable business

The deal will be Huawei's first major sale since US President Donald Trump ramped up the crackdown on the controversial company amid fears of state-sponsored spying.

The struggle between the US government and Huawei began back in 2011 when USA intelligence officials accused Huawei saying that the company's hardware could provide a backdoor to China's massive surveillance practices.

Liang accused the USA of inappropriate conduct, while at the same time striking a conciliatory tone - a response reflecting a level of exasperation now felt by the Chinese tech giant.

Huawei has offered similar proposals to the United Kingdom and Germany.

A Huawei logo is seen on the side of a building at the headquarters in Shenzhen, Guangdong province, China May 30, 2019. "So, I don't know if there's opportunity to sign such an agreement".

The CIA has reportedly told allied governments that Huawei has received funding from China's state security services but the company denies being controlled by Beijing.

"It is inappropriate to use political means to disrupt an industry", he said.

The US Commerce Department last month placed the company on an "entity list" on grounds of national security, a move that curbs its access to US-made components it needs for its equipment.

Huawei is the world's largest telecom vendor and the second-largest smartphone maker behind Samsung. The Trump administration has delayed the ban from taking full effect until later this summer.

According to the United States, Huawei is a national security threat. Last week, the company filed a legal motion in a USA court to declare the Trump administration's efforts to ban its equipment as unconstitutional. Last year, tensions reached a fevered pitch after the U.S issued an arrest warrant for Huawei Chief Financial Officer Meng Wanzhou, on charges related to breaching American sanctions against Iran, among other allegations.

But cybersecurity experts worry the ban will hurt USA tech companies more than it hurts the Chinese telecom giant - and will diminish US influence over the security of new technologies.

Experts in China say that the US government's ban might hurt Huawei in the short term, however, in the long term this might strengthen the company even more.

Huawei may also have been motivated by global concern that the company can use its undersea cables to monitor intercontinental communications, Fu said.

The Commerce Department imposed that ban last month as part of a broad government effort to punish Huawei over concerns it's helping the Chinese government spy on USA companies.

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