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Despite EU Bans, Funding for Huawei in Critical Technology Projects Continues

As it turns out, the European Union is actively funding Huawei’s research in telecommunications technologies and next-generation communication systems despite the fact that some EU countries have imposed sanctions against the Chinese company, banning or restricting the use of Huawei’s equipment in their telecommunications networks, writes FT.

Huawei’s involvement in numerous projects is of great importance, ranging from artificial intelligence to promising 6G networks and cloud computing, even though official Brussels insists on stricter restrictions for the company due to security reasons.

According to The Financial Times, Huawei is currently participating in 11 projects under the leading EU program Horizon Europe, receiving up to 14 percent of funding for each project, totaling 3.89 million euros. More important than the money is the fact that participation in such a program actually allows Huawei to be at the center of EU research and development activities, despite the fact that about a third of EU countries are pushing ‘high-risk suppliers’ out of 5G infrastructure and projects.

Jeroen Groenewegen-Lau, head of science, technology, and innovation at the German Mercator Institute for Chinese Studies, stated that the selection of Huawei for projects involving sensitive technologies was ‘incredible’ and that he was surprised this selection did not raise alarms during the selection process.

Huawei provides infrastructure equipment and AI platforms for research projects supported by the EU, including programs related to quantum sensors, autonomous driving, and other industries. Some analysts warn that the company’s involvement could undermine European information security and thwart the EU’s intention to remain a self-sustaining entity capable of developing critical technological infrastructure. Many European experts are questioning why an alarm was not raised during the decision-making phase regarding Huawei’s participation.

Difficult Without Huawei

Denmark, Sweden, and Portugal are the latest countries considering measures to limit or already limiting Huawei’s participation in their 5G networks, and the European Commission recently warned that it may be necessary to adopt uniform rules to restrict the participation of high-risk companies in 5G projects if local authorities do not tighten laws themselves.

According to some experts, the ongoing cooperation shows that Europe will not be able to completely abandon interaction with Huawei in the near future. Along with the 11 Horizon Europe projects in which Huawei has received funding, the company has also participated in other programs that did not receive EU grants. Huawei itself reported that it has participated in more than 30 EU projects related to research and development since 2007.

One of the projects involves research to build a high-security framework related to autonomous vehicles. American chipmaker Intel, Japanese automotive parts supplier Denso, and Stellantis, the fourth largest car manufacturer in the world, are also partners in this project.

Thanassis Giannetsos, project coordinator, stated that Huawei has the ‘expertise’ to support the consortium’s goal of building a methodology for future autonomous driving.

– We are aware that some companies and their customers may have concerns about Huawei’s participation, but this has already been discussed in the proposal phase – he said.

The company added that its involvement in Horizon Europe has been independently assessed by various expert panels selected by the EU and that Huawei’s participation has been officially approved.

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