



The article pointed out that so much of the supply chain is in China, with intellectual property shared between companies that any separation would not be feasible for the foreseeable future. We’ve recently published an exclusive article about the potential fallout of an increased trade war between the United States and China and what it would mean to the technology industry as a whole. The arrest, although seemingly separate from the warning from NCISA further paints a picture of distrust for Huawei.
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Huawei’s CFO Meng Wanzhou was recently arrested then released on bail awaiting extradition trial in Canada by request of the United States for fraud and violating international sanctions. The warning from NCISA comes just weeks after the United States had urged allies to avoid using Huawei telecommunications technology before the G20 summit. Related Story Abdullah Saad ZTE Christmas Celebrations Bring Discounts on Axon 30 and Axon 30 Ultra Implications The NCISA warning also cites that their findings are consistent with other security agencies from around the world, and lead to “reasonable concerns” regarding the implementation of Huawei and ZTE technology in communication and information systems. Therefore, this raises concerns that the interests of the PRC may be prioritized over the interests of the users of these companies’ technologies.

According to available information, there is an organizational and personal link between these companies and the state. At the same time, these companies usually do not refrain from such cooperation with the state in this environment, efforts to protect customers’ interests at the expense of the interests of the PRC are significantly reduced. The legal and political environment of the People's Republic of China ("PRC") in which the companies primarily operate and whose laws are required to comply with, requires private companies to cooperate in meeting the interests of the PRC, including participation in intelligence activities etc. The reasoning is found on page two of the published warning:
