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Friday, January 28, 2022

Huawei and the UK

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Graham Perry
Experienced Arbitration Lawyer | China & Chinese Business Affairs | Public Speaker/Lecturer.

A further development on the Huawei issue in the UK. Today the UK government will present its telecommunications Bill to Parliament which adds a new ban on the installation of Huawei equipment. The Bill will detail the penalties that companies including BT and Vodaphone could face if they fail to comply with UK government instructions. The bill proposes a maximum fine of 10% of revenue or £100,000 per day. The UK government will monitor breaches of the Bill by spot checks of network equipment, independent tests, and demands to view documents.

Two points;-
First, the fines will not come into force until 2027 allowing time for fraught diplomatic exchanges
Second, Victor Zhang, vice-president of Huawei said the UK decision “is politically motivated and not based on a fair evaluation of the risks”
Unfairness and discrimination is at the heart of Ambassador Liu Xiaoming’s complaints about UK policy on China and has warned that it will derail efforts to improve trade relations.

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