The legal and political environment of the People’s Republic of China (“PRC”) in which the companies primarily operate and whose laws are required to comply with, requires private companies to cooperate in meeting the interests of the PRC, including participation in intelligence activities etc. At the same time, these companies usually do not refrain from such cooperation with the state; in this environment, efforts to protect customers’ interests at the expense of the interests of the PRC are significantly reduced. According to available information, there is an organizational and personal link between these companies and the state. Therefore, this raises concerns that the interests of the PRC may be prioritized over the interests of the users of these companies’ technologies.
(U//FOUO) FBI Counterintelligence Note: Huawei Chinese Government-Subsidized Telecommunications Company
Huawei is a threat to intellectual property and business communications due to its opaque relationship with the Chinese Government. Huawei has legal obligations to work on behalf of the Chinese state, probably through the Chinese Communist Party (CCP) committee residing within Huawei. This relationship likely influences the company’s decision-making through threats of corruption investigations.