US intelligence claims Huawei funded by China state security

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Huawei has once again been accused of being on the Chinese government's payroll by the US.

US intelligence accused the Chinese telecommunications giant of being funded by China’s National Security Commission, the People’s Liberation Army and a third branch of the Chinese state intelligence network, Reuters reported.

Huawei dismissed the allegations, saying they were coming from anonymous sources, they were “unsubstantiated” and “backed up by zero evidence”.

At the same time, the company issued its quarterly results, showing revenue up 39 per cent.

The company had earned $26.81 billion in the first quarter of 2019, adding that its net profit margin was roughly eight per cent for the quarter. This was also “slightly higher” compared to Q1 last year.

Actual net profit was not disclosed in the report.

With the end of March, Huawei said to have signed 40 commercial 5G contracts with carriers and shipped more than 70,000 5G base stations, all over the globe.

It expects to ship at least 100,000 by May.

These figures come at a sensitive time for Huawei, as the company faces US allegations of being a platform for the Chinese government to spy on its western adversaries.

The US has urged its allies to ban Huawei from their 5G infrastructure projects. The company says these claims are unfounded and argues that it’s as safe as any other telecommunications company out there.

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