UK's U-turn on Huawei risks post-Brexit trade relations crisis

CHINA has already hit back, following the UK government's U-turn on Tuesday to ban mobile providers from buying new Huawei 5G equipment after Dec 31. With Huawei equipment restricted from the UK's 5G network by 2027, the decision is likely to delay domestic network roll-out, but the much bigger impact is for international relations.

The UK decision could draw a big blowback for its relationship with China, especially in a wider context of cooling ties over issues such as Hong Kong. With the Chinese Ambassador to the United Kingdom warning that "if (Britain) makes China an enemy, China will become an enemy", one specific area where Beijing could now hit London hard is over post-Brexit trade relations.

The UK's U-turn, only months after Prime Minister Boris Johnson's January decision to approve a limited role for Huawei in building the country's 5G network, comes after pressure from dozens of Conservative Members of Parliament (MPs) and the Trump administration. These parties urged Mr Johnson to review his position as a priority. The latest salvo came a few weeks ago when Washington placed additional sanctions against Huawei restricting the firm from using US technology and software to design its semiconductors.