The 2019 HCSEC Oversight Board Report again recognises the effectiveness of the HCSEC. As the report says, "The oversight provided for in our mitigation strategy for Huawei's presence in the UK is arguably the toughest and most rigorous in the world. This report does not, therefore, suggest that the UK networks are more vulnerable than last year."
The 2019 HCSEC Oversight Board Report details some concerns about Huawei's software engineering capabilities. We understand these concerns and take them very seriously. The issues identified in the 2019 HCSEC Oversight Board Report provide vital input for the ongoing transformation of our software engineering capabilities. In November last year Huawei's Board of Directors issued a resolution to carry out a company-wide transformation programme aimed at enhancing our software engineering capabilities, with an initial budget of US$2bn.
A high-level plan for the programme has been developed and we will continue to work with UK operators and the NCSC during its implementation to meet the requirements created as cloud, digitization, and software-defined everything become more prevalent. To ensure the ongoing security of global telecom networks, the industry, regulators, and governments need to work together on higher common standards for cybersecurity assurance and evaluation.