Chinese tech firm Huawei to invest in the Czech Republic

  • Roman Šulc
  • 26.5.2017 16:43

After the negotiation with Czech President Miloš Zeman, the representatives of Chinese telecommunication firm Huawei confirmed that the company intends to invest as much as 360 million dollars in the Czech Republic. However, the economic benefits of Huawei's higher Czech market share are balanced out by possible security risks, as the intelligence community, including local internal intelligence agency BIS, has repeatedly warned before Huawei's integration into critical infrastructures due to its alleged connections to the Chinese government.

Perhaps the starkest stance on the Chinese telecommunication giant, based on the concerns about espionage and security vulnerabilities present in firm's portfolio, is represented by the United States, who prevented the company from multiple planned acquisitions and the U.S. House of Representatives Select Committee on Intelligence has openly expressed, that the integration of Huawei’s products into critical infrastructure is not recommended. Distrust toward Huawei continues as the risks of its participation in the building of American 5G data network are currently evaluated. Similar measures were also taken by other countries such as India and Australia, which directly banned the company from a tender for state broadband network building. Huawei's participation on analogous programme of national broadband and other crucial Czech initiatives, such as smart city or safe city, has already been confirmed.

About author: Roman Šulc


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