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Huawei ‘being funded by Chinese spook agency’ CIA warns Britain amid fears mobile giant could be used to spy on Brits

The Chinese telecoms manufacturer took money from the communist regime, according to a US intelligence source

HUAWEI received cash from Chinese state security services, the CIA has reportedly warned UK spy bosses.

The telecoms giant wants to supply technology to roll out Britain's new 5G mobile network, but American intelligence chiefs say that could be a dangerous mistake.

 Huawei says it will not respond to what it calls 'unsubstantiated claims' it received money from Beijing's spying agencies
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Huawei says it will not respond to what it calls 'unsubstantiated claims' it received money from Beijing's spying agenciesCredit: Reuters

US spooks told the UK that Huawei took money from the People's Liberation Army, China's National Security Commission and a third part of the Chinese state intelligence network, The Times reports.

A source told the paper that the US gave its findings to Britain and its other partners in the Five Eyes intelligence group — Australia, Canada and New Zealand — earlier this year.

5G ROLLOUT

The UK is currently entering into its final stages of a review of its next generation mobile network rollout.

And although Huawei is currently poised to be a big part of the new tech, the funding allegation is the most serious yet linking the telecoms firm with the Chinese state.

Huawei insists it is a private company independent of the Chinese government and it denies posing any security risks.

But some critics say China's laws mean companies are compelled to comply with its security agencies.

This could mean "backdoors" being built into software that would allow those agencies to spy on or disrupt British communications, it is feared.

It is believed that the US intelligence has only been seen by the most senior UK officials, and the CIA gave its information a strong but not absolute level of certainty.

A separate US intelligence source told The Times that American agencies believe the Chinese ministry of state security — the nation's main spying organisation — had approved funding for Huawei.

CHINESE SECURITY LAWS

The source said allowing Huawei to sell its 5G equipment to any part of the Five Eyes alliance was "so problematic" because "China has intelligence and national security laws which compel companies to assist the Chinese military.

"There's no such thing as a true private sector in China."

Washington decided it was too dangerous to do business with Huawei after discovering the money, according to the source.

Huawei said it would not comment on what it called unsubstantiated allegations.

Its executives said the state has never asked it to gather information and it would refuse to do so if asked.

Huawei was founded in 1987 by Ren Zhengfei, a former officer in the People's Liberation Army.

It has admitted receiving some subsidies from the Chinese government in previous years, but said they were for research and development activities similar to subsidies given out by European governments to its native companies.

A company spokesperson said: "Huawei does not comment on unsubstantiated allegations backed up by zero evidence from anonymous sources."


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