Back doors, and how Huawei got its facial recognition technology

Doug Guthrie is a former Apple executive โ€” and a China bull. His views are no longer so sunny, as you can see in his new piece for our website: The age of cooptation: The high cost of doing business in Xiโ€™s China. The piece includes a fascinating anecdote about how Huawei developed its facial recognition technology, with the help of the Chinese government.

That all large companies in China are co-opted by the state may not surprise many China-watchers, but it does show why Huawei will never be treated as a regular private company. Now comes this news, from the Wall Street Journalย (paywall, or see this Reuters story):

U.S. officials say Huawei Technologies Co. can covertly access mobile-phone networks around the world through โ€œback doorsโ€ designed for use by law enforcement, as Washington tries to persuade allies to exclude the Chinese company from their networksโ€ฆ

Matthew Pottinger, a U.S. deputy national security adviser, traveled to Berlin in late December to share the intelligence with senior officials in Chancellor Angela Merkelโ€™s governmentโ€ฆ

Some German officials came away from the briefing by Mr. Pottinger convinced by the U.S. intelligence, according to a senior official familiar with the meeting. A confidential memo written by the German Foreign Office and seen by The Wall Street Journal states that Mr. Pottinger provided โ€œsmoking gunโ€ evidence that Huawei equipment posed a spying risk. The memo was first reported by the German newspaper Handelsblattย [in German].

โ€”Jeremy Goldkorn