ECS 2019: China’s tech giant Huawei under fire in cybersecurity scandal

No.83 on fortune 500, Chinese tech giant, Huawei, is facing allegations in the Czech Republic, after a report was published by the Czech secret service, highlighting a purported cybersecurity threat due to Huawei’s close links with the Chinese government.

Trouble arose after two Czech former Huawei managers confessed that they were tasked with collecting information relating to their clients. These details were then in turn added into a database overseen by the company’s headquarters in China and shared with Chinese officials.

Huawei has again denied all allegations, citing “We have never been engaged in any intelligence activities in the Czech Republic”. Be that as it may, on December 2018, the Czech National Cyber and Information Security Agency (NCISA) issued a warning marking Huawei as a threat to their national security, paying homage to a Chinese law which enables Chinese national authorities to gather intelligence from private companies located there.
This news comes as the United States instructs its own government agencies to boycott Huawei amid growing suspicions about its activity. More recently the US blacklisted Huawei, causing electronics manufacturer Flex to seize almost £100 million of Huawei tech.

These allegations could be severely damaging to Huawei’s brand image and market share in the Czech Republic which currently sits at a staggering 22.3%, way ahead of Apple’s 18.2% share.

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Author: Kieran Phillips