Why did many countries restrict Huawei from their 5G networks?

Many countries restricted Huawei from 5G networks because the telecom equipment that runs a phone network sits at the centre of a country's communications, and some governments worried that equipment from a Chinese company could be used for surveillance. Huawei, founded in Shenzhen in 1987 by Ren Zhengfei, a veteran officer of the People's Liberation Army, became the world's largest telecommunications equipment manufacturer in 2012. It has faced difficulties in some countries from concerns that its equipment may enable surveillance by the Chinese government.

Why the worry? Experts say that China's 2014 Counter Espionage Law and 2017 National Intelligence Law can compel Huawei and other companies to cooperate with state intelligence. Huawei rejects the accusation. In 2019 Ren Zhengfei stated that Huawei never participates in espionage and absolutely never installs backdoors, even if required by Chinese law, and Huawei has argued that critics such as the US government have not shown evidence of espionage.

Outside reviews have not all agreed. A 2012 White House-ordered security review found no evidence that Huawei spied for China, and German and British intelligence agencies initially pushed back against the US allegations. Even so, in 2018 the United States barred the federal government from doing business with Huawei and ZTE, and on 14 July 2020 the United Kingdom announced a ban on the use of Huawei's 5G network equipment, citing security concerns. In May 2022 Canada followed, while Australia had already excluded Huawei from its 5G network in 2018. The Chinese government has threatened economic retaliation against countries that block Huawei's market access.