Episode 149: How Real is the Huawei Risk?




The Security Ledger Podcasts show

Summary: <br> In this episode of the podcast we’re joined by Priscilla Moriuchi of the firm Recorded Future, which released a report this week analyzing the security risks posed by Huawei, the Chinese telecommunications and technology giant. <br> <br> <br> <br> <br> <br> <br> <br> In recent months, the Trump Administration has made the technology and telecommunications giant Huawei Technologies a poster child for its assault on China’s anti-competitive practices. <br> <br> <br> <br> The Shenzen maker of everything from networking equipment to smart phones, Huawei has over $100 billion in sales and 180,000 employees globally. It is a key participant in China’s <a href="https://www.nytimes.com/2019/01/22/business/china-foreign-policy.html">ambitious Belt and Road initiative</a> to develop and modernize a broad swath of Africa, Asia and <a href="https://www.nytimes.com/paidpost/china-daily/austrias-ambassador-the-belt-and-road-initiative-boosts-economic-development.html">even Europe</a>. <br> <br> <br> <br> <a href="https://www.linkedin.com/in/priscilla-moriuchi-410297127/" target="_blank" rel="noreferrer noopener"></a>Priscilla Moriuchi is the Director of Strategic Threat Development at Recorded Future<br> <br> <br> <br> Western doubts about Huawei’s intentions are nothing new. Silicon Valley competitors and lawmakers have long warned about <a href="https://www.npr.org/2019/06/08/730898429/huawei-accused-of-technology-theft">Huawei’s business practices</a> and the ties of the company and its founder Ren Zhengfei’s ties to the Chinese Military and the Communist Party. <br> <br> <br> <br> The Trump Administration has ratcheted up the pressure on the company, <a href="https://securityledger.com/2019/01/doj-charges-huawei-execs-in-broad-indictment-spanning-10-years-of-criminal-activity/">indicting 10 senior executives on charges of theft of trade secrets </a>and warning U.S. government agencies and allied not to use Huawei’s technology and warning companies that do business with the US government to beware. There’s <a href="https://www.nytimes.com/2019/05/23/business/dealbook/huawei-china-technology.html">evidence</a> that the <a href="https://www.nytimes.com/2019/05/22/business/huawei-google-japan-britain.html">warnings are having an impact</a>, especially in countries closely aligned with the U.S. <br> <br> <br> <br> <a href="https://securityledger.com/2019/01/doj-charges-huawei-execs-in-broad-indictment-spanning-10-years-of-criminal-activity/" target="_blank" rel="noreferrer noopener">DoJ Charges Huawei Execs in Broad Indictment Spanning 10 Years of Criminal Activity</a><br> <br> <br> <br> But China’s government has retaliated: warning US and western firms about the dangers of participating in Washington’s ban. That leave businesses in a pinch. But  our guest this week suggests that they may do well to be wary of Huawei, regardless of what the US Government and the Trump Administration says.  <a href="https://www.linkedin.com/in/priscilla-moriuchi-410297127/">Priscilla Moriuchi</a> is the director of strategic threat development at Recorded Future. In a <a href="https://www.recordedfuture.com/huawei-technology-risks/">report released this week</a>, Moriuchi and Recorded Future warn that Huawei’s risk to western companies is more than just a hypothetical. The company is unique because of the breadth of its technology portfolio – everything from undersea cables to smart phones. By extension, that makes it unique in the breadth of data that it collects from customers world-wide. Today – or at any point in the future -that data could prove irresistible to a Communist Party interested in lifting China’s stature as a global superpower and wary of democratic values like free expression and freedom of association, Moriuchi says. <br> <br> <br> <br> A map showing undersea cables that Huawei has laid or upgrade...