5G Providers Cling to Huawei Despite U.S. Ban

Amid ongoing efforts in the U.S. and Europe to ban the use of Huawei gear in 5G networks, service providers worldwide continue to enjoy supplier relationships with the China-based equipment vendor. And that could end up snarling U.S. trade relations in some surprising parts of the globe.

To recap: The U.S. government first moved in 2012 to discourage American companies from using Huawei and ZTE products after failed attempts to get reassurance that the Chinese vendors wouldn’t cooperate with any anti-U.S. intelligence efforts by their government. Then early in 2019, the U.S. Department of Justice accused Huawei of a series of crimes, including stealing intellectual property from T-Mobile (Nasdaq: TMUS).

As 5G started to gain steam, the sanctions snowballed. In May 2019, then-president Donald Trump issued an executive order to prohibit the use of Chinese telecom technology in the U.S., particularly in emerging 5G networks. Huawei subsequently took a starring role on the U.S. Department of Commerce’s Entity List of firms whose dealings go contrary to U.S. interests. In 2021, the Biden administration extended Trump’s ban, and the sanctions have only been strengthened in the years since. Indeed, Huawei has become a central player in the ongoing technological confrontations between the U.S. and China.

Throughout these efforts, the U.S. has called on its allies to support its efforts to block Huawei and ZTE from 5G networks. To date, the U.K., Australia, Canada, and ten EU countries have reportedly barred Huawei from 5G implementations. But Futuriom research shows that telcos in many other countries, including South Korea, Mexico, and the Republic of Ireland, remain engaged with Huawei and other Chinese suppliers.

Data Shows Who’s Still In with Huawei