Although such a relationship has been long suspected, the USA intelligence agencies reportedly shared evidence of Huawei's role as an intelligence asset for the Chinese government with nations of the Five Eyes group earlier in 2019. One 10-count indictment accuses Huawei of stealing trade secrets from USA carrier T-Mobile beginning in 2012.
The Times reported that, according to the USA intelligence agency, Huawei was being funded by the Chinese People's Liberation Army, the National Security Commission, and a third branch of the Chinese state intelligence network. However, Huawei has denied this claim.
Huawei dismissed the allegations, saying they were coming from anonymous sources, they were "unsubstantiated" and "backed up by zero evidence".
Huawei became the target of a US -led boycott in 2018 after the United States government and related organizations raised allegations that Huawei equipment, including backbone network infrastructure and handsets, have security risks which could lead to leaks of vital information including personal and industrial information.
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It's the reason why the United States banned companies from using Huawei networking equipment in 2012. The company has said the concerns are unfounded.
Meng Wanzhou, Huawei's chief financial officer and daughter of its founder, Ren Zhengfei, was arrested in Canada in December at the request of the United States on charges of bank and wire fraud in violation of USA sanctions against Iran.
Amid such charges, top educational institutions in the West have recently severed ties with Huawei to avoid losing federal funding. This was also "slightly higher" compared to Q1 previous year.
The sanctions were lifted after ZTE paid US$1.4 billion (S$1.9 billion) in penalties.
The Chinese firm, which is also the world's No. 3 smartphone maker, said last week the number of contracts it has won to provide 5G telecoms gear increased further despite the U.S. campaign.