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Ban on Huawei from Britain’s 5G network ‘sends a very bad signal’ for investment, warns China

Chinese ambassador Liu Xiaoming said blocking Huawei from Britain’s 5G network would send a “very bad signal” to other Chinese companies.

Speaking to BBC’s Newsnight on Wednesday evening, Mr Liu said that a move to block the Chinese telecoms giant from the new technology could impact trade and investment with other Chinese companies. 

He said: “Chinese investment is booming in this country, last year it grew by 14pc. But if you shut the door on Huawei you will send a very bad and negative message to other Chinese businesses.”

Huawei, a leader in developing 5G networks, has been at the centre of an escalating trade war between the US and China, and was blacklisted by the US government in May after following repeated accusations of espionage.

Huawei has denied the charges and is currently trying to reverse the ban in US courts, arguing that a law that bans government purchases from the Chinese telecoms firm is unconstitutional.

Mr Liu said that blocking Huawei could damage Britain’s reputation for being a “business friendly environment”.

“If the UK collaborates with Huawei there will be a promising future for both sides,” he argued.

Chinese state media has accused the US of seeking to “colonise global business” by targeting Huawei and other Chinese companies with sanctions and asking allies to block them from doing business. 

The UK government has not banned the company from participating in the 5G network despite pressure from its ally. 

However, Huawei has been at the centre of a political storm after The Telegraph revealed that Theresa May decided to allow the firm, which has close ties to the Chinese Government, to bid for 5G mobile contracts in the UK, despite fears it could compromise future national security.

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