It is not just the spooks who are spooked. An unprecedented leak of UK ministerial musings sparked alarm this week. Their deliberations on the risks posed by Chinese telecoms group Huawei were meant to be top secret. Their prime British fudge — to allow the Chinese business to supply only part of the UK’s 5G network — also fuelled anxiety. The US is particularly vexed. It has long tried to convince allies that Huawei’s gear is a security threat.
Australia has sided with Washington, banning Huawei. Japan and Taiwan have made similar moves. They are unconvinced by the Shenzhen-based company’s denials it is controlled by the state or that its kit could be used to spy.
For all that, Huawei appears unfazed by the drama engulfing its 5G business, to judge by its latest — admittedly unaudited — figures. The results published earlier this week showed the dispute has barely dented growth. Revenues fell just 1 per cent last year for the carrier unit which houses its telecoms equipment business. That was more than offset by the 45 per cent increase in sales from its consumer unit led by smartphones. Overall, the private group was able to report a 39 per cent increase in first-quarter revenue. The net profit margin rose.