I haven't seen any evidence Huawei have actually been doing anything naughty, but the potential problem is real. China is a totalitarian regime, and the government can secretly force otherwise independent businesses to do things they don't want to. That is a serious security issue when those businesses are selling things like telecoms backbones.
On the whole it doesn't present insoluble difficulties to design acceptance criteria to deal with the risk, and having those might well help keep tabs on other suppliers too.
Biting the hand that feeds IT
