Huawei defends UK track record amid 5G controversy

Chinese vendor contributed £806m to GDP through its supply chain, according to Oxford Economics

Huawei has launched a report claiming it contributed £1.7bn to the national economy last year.

The study - undertaken by advisory firm Oxford Economics - comes after a fortnight of controversy around the vendor's role in the UK government's 5G roll-out plans.

Earlier this month confidential information regarding the government's plans to ban the firm's involvement in core parts of the 5G network but allow it to take part in non-core elements of the infrastructure was leaked to the public.

An inquiry into the leak saw defence secretary Gavin Williamson booted from his ministerial role, but he vehemently denies being the leaker.

And last week saw US defence secretary Mike Pompeo warning Theresa May against involving Huawei in the national 5G infrastructure roll-out.

Donald Trump's administration has spent the past 12 months attempting to build a coalition against the vendor, accusing it of spying on behalf of the Chinese government.

In February, Aaron Ding, president of Huawei's carrier business group, rebuffed parliamentary concerns about the danger it poses to national security.

The report was launched at the vendor's UK Partner Summit, where Sir Andrew Cahn, non-executive director at Huawei UK, praised the UK for being receptive to new businesses and technologies.

"The UK has an outstanding reputation for nurturing business growth and pioneering innovation, and we are extremely proud of our relationships with our partners in the UK," he said.

"Huawei has enjoyed great success helping to build the UK's telecoms networks, and we remain fully committed to the UK. This is one of our most important markets globally and we fully intend to help it remain a leader in new technologies."

The research stated that £806m of the total contribution came via UK businesses within Huawei's supply chain, with £287m coming directly from the vendor and £598m generated from expenditure from its employees and suppliers.

The data also reported that the controversial Chinese vendor supports over 26,000 jobs - directly and through its supply chain - across the UK.

"Our research highlights how Huawei has continued to make a substantial contribution to the UK economy," said Pete Collings, director of economic impact consulting, Europe & Middle East at Oxford Economics.

"This extends beyond the company's own operations, to include significant activity throughout the breadth of the UK economy, as Huawei conducts crucial research and development in the UK and draws on UK-based firms to deliver the inputs required for its global business."

Between 2012 and 2017, Huawei spent £2.2bn on investment and procurement in the UK - £900m more than its intended target. It now plans to spend £3bn with British suppliers between 2018 and 2023.

Jerry Wang, Huawei UK CEO, stated: "Today's findings prove Huawei's value and contribution to the UK economy.

"As part of its Industrial Strategy, the UK Government has said it wants ‘a Britain that lives on the digital frontier, with full-fibre broadband, new 5G networks and smart technologies'.

"We are proud of the role we have played in helping to develop the UK's digital infrastructure and we remain committed to being a strong and innovative partner to our customers."