Chinese ambassador to United Kingdom warns of Huawei withdrawing $4 Billion investment

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Chinese ambassador says Huawei will withdraw planned $4 billion investment in the U.K. if banned from British 5G network

Huawei is turning out to be the Achilles heel for China.  China and Huawei both have been rattling for years about Huawei being an independent corporation without any connection to the Chinese government. However, the United Kingdom’s decision to bar Huawei from its 5G network has brought out the connection between the two. The connection comes in the form of a warning that Chinese Ambassador to the United Kingdom, Liu Xiaoming issued to Britons in a commentary in the South China Morning Post.

In the commentary, Xiaoming has threatened that Huawei will withdraw the planned $4  billion investment in the United Kingdom if the British government goes ahead with its decision to ban Huawei from participating in its 5G mobile networks.

In 2018, the company announced a further investment plan of £3 billion in the next five years, which is a positive vote for growth in Britain. Unfortunately, this will now be subject to uncertainties in light of the British government’s recent decision.

Chinese Ambassador to the United Kingdom, Liu Xiaoming

Xiaoming also slyly eluded that the Britons were wrong in supporting the Prime Minister, Boris Johnson led government. He said that the British tax-payers could bear the brunt of PM’s decision to ban Huawei in terms of additional 5G equipment costs.

This decision, in addition to hampering growth, also comes with a bill which will inevitably be paid by consumers. British telecommunications operators estimate that removing Huawei equipment from their networks would cost billions of pounds and result in a delay of at least two to three years and an extra cost of £6.8 billion in Britain’s 5G roll-out.

Chinese Ambassador to the United Kingdom, Liu Xiaoming

Xiaoming called upon the British people to oppose the government’s Huawei ban. “I hope visionary people in Britain will see the big picture of Chinese-British cooperation, bear in mind the well-being of the peoples of the two countries, listen to reasonable voices and make a wise choice on Huawei so as to embrace opportunities, embrace growth and embrace the future,” he added in the article.

The U.K. 5G ban is not the only worry for Huawei. Chile has decided to join the Japanese led Trans-Pacific fiber-optic network instead of Huawei lead Shanghai/Hong Kong-Chile link. Chile’s decision could cost Huawei billions of dollars in future revenues and also mean that it has no part in the South American fiber- optic linkages.

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