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UK could see huge hit to the economy from banning Huawei

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The UK banning Huawei from its 5G network infrastructure rollout could see it risk losing billions of dollars in profit, as well as its position as a global leader in new technologies.

The Chinese technology giant, who's being accused by the United States of being a potential Chinese espionage instrument, commissioned Assembly to conduct a research into potential effects of the UK government banning it from its 5G efforts.

The report states that by banning Huawei, the country stands to lose approximately $23.55 billion until 2027, as well as its competitive advantage. The report, Assembly claims, is in line with what the UK government said itself – that 5G rollout may be delayed for as long as three years.  Out of the $23.55bn potentially lost, the majority – cca. $13bn  may be lost forever.

Under a scenario where the UK is a global 5G leader, the mobile sector would miss out on the opportunity to generate about $6.08bn and related industries would lose about $2.59bn. The economy at large would miss benefits estimated around $1.94bn.

“This new research shows how the US administration has directly impacted Britain’s economy, ending the UK’s leadership in 5G, holding the country back from realizing its full potential for years to come,” commented Victor Zhang, Vice President of Huawei.

Our priority at Huawei remains to support our customers in delivering and helping to build a better connected UK. This independent research, shows why we would urge the government to reconsider its decision.”

The US has been lobbying with its allies to stop using Huawei’s gear and services, saying the company could be used by the Chinese government for espionage, by being forced into building backdoors in its network.