NCSC believes risks associated with Huawei equipment use in 5G networks are manageable, claims report

Huawei faces pressure over claims its equipment could be used by Chinese government agencies to conduct espionage

The UK National Cyber Security Centre (NCSC) has concluded that it is possible to limit the alleged risk of using Huawei hardware in future 5G networks.

That's according to two people familiar with the conclusion, quoted in today's Financial Times.

The decision, which has not yet been made public, would "carry great weight" with European leaders, and could be a serious blow to US efforts to convince its allies to ban the Chinese equipment maker from future 5G projects in their countries.

"Other nations can make the argument that if the British are confident of mitigation against national security threats then they can also reassure their publics and the US administration that they are acting in a prudent manner in continuing to allow their telecoms service providers to use Chinese components, as long as they take the kinds of precautions recommended by the British," the source told the FT.

Huawei, the world's largest telecom equipment maker, has been under intense scrutiny in several European countries over allegations from the US that Huawei equipment could be used by the Chinese agencies to spy on America and its allies.

The concerns raised by US agencies centre around the Chinese National Intelligence Law of 2017, which requires Chinese citizens and companies to collaborate, on request, in national intelligence work.

The US says high-speed 5G technology will have so many economic and military applications that there are high risks associated with using Chinese-made telecoms equipment in 5G networks.

In Britain, a report by the NCSC last July also raised concerns about some issues associated with Huawei equipment, which had exposed British telecom networks to new security risks.

However, while promising to address the criticisms raised by the NCSC, Huawei has repeatedly denied the US-led security claims, stating that all its products are safe.

The company added that its products undergo thorough security testing, and that customers are also provided with the verification reports detailing the security capabilities of those products.

Earlier this month, Ryan Ding, president of Huawei's carrier business group, sent a letter to the British lawmakers, stating that the company plans to invest $2 billion over the next five years to ensure that its products are fit for complex security environments in future.

The NCSC's latest conclusion stands in contrast to countries like New Zealand and Australia, which last year banned the use of Huawei equipment in 5G networks.

In November, New Zealand's telecom services provider Spark sent a request to government agencies to allow it to use Huawei equipment in its 5G networks, but this request was rejected.

On Monday, New Zealand Prime Minister Jacinda Ardern said that her country would independently evaluate the threats associated with using Huawei's equipment in 5G networks.

New Zealand is a member of the Five Eyes intelligence sharing network, which shares signals intelligence and monitors billions of private communications worldwide. Other members of the group are the UK, US, Australia and Canada.

"It is fair to say Five Eyes, of course, share information but we make our own independent decisions," Ardern told a weekly news conference. "The ball is now in their court." she added.