China responds to US indictment against Huawei

“I think the choice of words is very interesting from Beijing because I didn’t hear any talk about retaliation, I didn’t hear any talk similar to what we heard regarding Canada, where 5G networks might be held up, Huawei’s involvement in building these types of networks, you know, as a penalty might withdraw,” Capri said, referring to the next generation of mobile networking technology.

“What that does is that underscores the reality here, and that is that Huawei is incredibly vulnerable,” he said, explaining that vulnerability stems from the company’s “dependence still on Western tech.”

That’s why, Capri added, “Beijing is treading very carefully here.”

This is breaking news. Check back for updates.

—CNBC’s Kate Fazzini and Eustance Huang, and Reuters contributed to this report.

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