GCHQ chief: Britain needs to understand the opportunities and threats from Chinese technology

Jeremy Fleming believes that China's technology challenge is much larger than Huawei's current dispute with the USA

Chinese technology offers both opportunities and threats that Britain must understand before using it in vital telecoms infrastructure, Jeremy Fleming, head of the GCHQ, has warned.

Fleming believes that China's technology challenge is much larger than Huawei's current dispute with the US over intellectual property theft and state espionage allegations.

"The strategic challenge of China's place in the era of globalised technology is much bigger than just one telecommunications equipment company," said Fleming in his speech at an event in Singapore.

Huawei has been under intense scrutiny recently over US allegations that Chinese intelligence agencies may use its equipment in spying operations against America and its allies. The US is pressing the UK and several other European countries to avoid using Huawei's equipment in their future ultra-fast 5G networks.

In July, a report by the National Cyber Security Centre (NCSC) raised concerns over some issues associated with Huawei equipment. The NCSC said that those issues have exposed British telecom networks to new security risks.

Recently, the Royal United Services Institute published a report stating that it would be "irresponsible" to allow use of Huawei equipment in the UK.

The Chinese company, however, has denied these allegations, emphasising that its products are safe to use. In a letter sent to British lawmakers earlier this month, the president of Huawei's carrier business group Ryan Ding said that the company plans to invest $2 billion over the next five years to ensure that its equipment is fit for complex security environments.

The company also said that it was ready to accept supervision and suggestions from all Western governments, customers and partners.

Last week, the NCSC concluded that it is possible to mitigate the risks arising from using Huawei equipment in future 5G networks.

Most telecom companies in the UK, including Vodafone, Three and EE, work with Huawei on 5G technology, although they are currently awaiting the results of a government review that will decide whether they will be allowed to use Huawei equipment in their 5G networks.

In Singapore, Jeremy Fleming said the government was concerned about the consolidation of the telecom equipment supply chain and would take appropriate measures to ensure diversity in the supplier market.

"A market consolidated to such an extent that there are only a tiny number of viable options will not make for good cyber security. That's regardless of whether those options are Western, Chinese, or from somewhere else," Fleming said.

He also highlighted the need for greater cyber-security across the telecommunication sector.

"Vulnerabilities can and will be exploited. But networks should be designed in a way that cauterises the damage."