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Huawei company Issue and its likely impact on India?

What is Huawei company?

  • Huawei Technologies Co. Ltd. is a Chinese multinational technology company that provides telecommunications equipment and sells consumer electronics, including smartphones, headquartered in Shenzhen, Guangdong, China.
  • The company was founded in 1987 by Ren Zhengfei. Initially focused on manufacturing phone switches, Huawei has expanded its business to include building telecommunications networks, Aproviding operational and consulting services and equipment to enterprises inside and outside of China, and manufacturing communications devices for the consumer market

What are the issues in which Huawei company is mired in?

  • Huawei has faced criticism for various aspects of its operations, with its most prominent controversies having involved U.S. allegations of its products containing backdoors for Chinese government espionage—consistent with domestic laws requiring Chinese citizens and companies to cooperate with state intelligence when warranted.
  • Huawei executives have consistently denied these allegations, having stated that the company has never received any requests by the Chinese government to introduce backdoors in its equipment, would refuse to do so, and that Chinese law did not compel them to do so.
  • Huawei has also been accused of various instances of intellectual property theft against parties such as Nortel, Cisco Systems, and T-Mobile US (where a Huawei employee had photographed a robotic arm used to stress test smartphones and taken a fingertip from the robot)

How India would be impacted by Huawei and USA conflict?

  • The US has warned the Indian government that companies found supplying equipment or other products of American origin to Huawei or its units could face punitive action, said people with knowledge of the matter.
  • The May 27 letter, sent to the Ministry of External Affairs (MEA), is being seen as part of US efforts to intensify pressure on India to act against the Chinese company.

Current Affairs 2020

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