Huawei secretly sponsors American research despite blacklisting

Despite being on the U.S. blacklist, Chinese technology behemoth Huawei has been discreetly sponsoring research in the United States, as uncovered by Bloomberg. This advanced research is being conducted at prestigious institutions, including Harvard University, with funding channeled through an independent research foundation based in Washington, D.C., which also organizes a competition targeting scientists.

Bloomberg’s investigation revealed that Huawei is the exclusive financier of a research contest that, since 2022, has disbursed millions of dollars and attracted a multitude of proposals from researchers, some of whom are affiliated with leading U.S. universities that have prohibited collaborations with Huawei.

The concern surrounding this covert funding is that it could potentially lead to technological advancements that would provide China with competitive advantages in defense and commercial sectors. Kevin Wolf, a partner at Akin Gump Strauss Hauer & Feld LLP with expertise in export controls, expressed apprehension over the implications for national security.

The foundation involved, Optica, has publicly expressed interest in research areas including “high-sensitivity optical sensors and detectors.” James Mulvenon, a defense contractor experienced in research security and co-author of works on industrial espionage, criticized the foundation for anonymously accepting funds from Huawei, given the company’s contentious standing with the U.S. government.

While the funding operation appears to be within legal boundaries—since research intended for publication is not subject to the ban—Huawei’s involvement in the U.S. research competition was not disclosed to participants, who believed the funding originated from Optica. The competition, which awards $1 million annually, did not indicate Huawei’s role as the financial source.

A Huawei spokesperson stated to Bloomberg that the competition was established in partnership with the Optica Foundation to foster global research and academic exchange, and anonymity was chosen to avoid the perception of promotional intent. Liz Rogan, CEO of Optica, defended the practice of donor anonymity, noting that the foundation’s board was fully aware of Huawei’s participation and had approved it. However, Bloomberg observed that this Huawei-supported contest was the only one listed on Optica’s website without named sponsors.

Huawei has been entangled in U.S. restrictions for several years, with most of its products unavailable for purchase in America due to a ban. The ban originated in 2019 with an executive order from President Trump, targeting telecom equipment deemed to pose significant national security risks. Trump cited concerns over vulnerabilities that could have “potentially catastrophic effects.”

Huawei has faced allegations of embedding backdoors for data theft and employing Chinese spies, though there is no concrete evidence of theft, and the company has denied these claims. Documents have also suggested Huawei’s involvement in China’s surveillance activities.

Expectations that President Biden might reverse Trump’s executive order were not met; instead, Biden maintained the order, enacted legislation preventing Huawei from obtaining FCC licenses, and prohibited American investments in certain Chinese high-tech sectors. As a result, Huawei remains unwelcome in the U.S., even as it continues to thrive in European markets.