European Union Commissioner for Internal Market Thierry Breton has called on member states to ban Chinese telecommunications companies Huawei and ZTE from using their 5G networks, escalating existing tensions with Beijing. Breton labeled these companies as ‘high-risk’, stating that this is a matter of national security.
In January 2020, the European Union adopted the so-called ‘5G cybersecurity toolbox’ aimed at identifying the risks of accepting certain 5G network providers within its jurisdiction. This came after several countries, along with the United Kingdom, decided to ban Huawei products for ‘security reasons’.
– We will continue excellent cooperation with member states that are lagging behind trends, as well as with telecommunications operators – said Breton this week, emphasizing the importance of accelerating decision-making regarding the replacement of so-called high-risk suppliers from member states’ 5G networks. The European official also appealed to concerned operators that it is high time to address this issue.
To date, only 10 EU countries have restricted or banned Huawei from accessing their 5G networks.
– The Commission will implement the principles of the so-called ‘5G toolbox’ in its own procurement of telecommunications services to avoid exposure to Huawei and ZTE – said Breton.
Cheaper and more advanced than competitors
China, on the other hand, firmly opposes all bans that European countries impose on the technology company, and Chinese authorities have stated that the European Commission has no legal basis for any bans or restrictions, Reuters reported.
Breton’s comments followed news that Germany is considering whether to ban Huawei and ZTE from accessing its 5G network, and in response to this move, the Chinese embassy in Germany stated that they are ‘confused and very dissatisfied’ with such outbursts.
The United States and its allies, including the United Kingdom and Australia, have already banned Huawei’s operations, and officials in Washington claim that Beijing could use the technology of large companies for espionage, although both China and the companies have denied these allegations.
Interestingly, the European Union previously described China as a ‘partner’, then as an ‘economic competitor’, and finally as a ‘systemic rival’. Today, the term ‘systemic competitor’ is increasingly used, attempting to keep China close while also maintaining distance due to the Chinese technological development that they consider problematic.
European Commission President Ursula von der Leyen stated earlier this year that the bloc should reassess its relations with Beijing, although she emphasized that it is not in the EU’s best interest to separate from China. Instead, she said, it should ‘mitigate the risks’ of relations with China.
Numerous operators have struggled to replace Huawei as a provider of technological infrastructure in their mobile networks, and industry leaders have confirmed that the technology of this Chinese company is often cheaper and more advanced than that offered by competitors such as Ericsson, Nokia, and Samsung.
Huawei also reacted
A denial from Huawei Technologies has also arrived regarding the claims made by representatives of the European Commission, which we relay in full.
– Huawei Technologies denies the claims made by representatives of the European Commission and we explicitly disagree with their statements as they are not based on verified, objective, and technical assessments of 5G networks. We understand the European Commission’s concerns and efforts to enhance cybersecurity; however, restrictions or exclusions based on discriminatory assumptions pose serious economic and social risks and halt innovation in the European market. An Oxford Economics report states that excluding Huawei could increase investment costs in 5G networks by several tens of billions of euros, which would result in costs being borne by European users.
Publicly labeling a particular entity as a high-risk manufacturer of electronic communications network equipment without legal basis is contrary to the principles of free trade. It is of utmost importance to emphasize that no supplier should be labeled with the discriminatory title of high-risk manufacturer of electronic communications network equipment without a justified assessment process. As an economic entity in the EU, Huawei has procedural and material rights and should be protected under EU and member state laws, as well as their international obligations.
Cybersecurity is one of Huawei’s main priorities, and we have opened a Cybersecurity Transparency Center in Brussels. The center is open to users and independent third-party testing organizations. They are invited to conduct fair, objective, and independent security assessments solely according to recognized industry standards of cybersecurity. We remain committed to providing globally certified and reliable products and services, connecting millions of Europeans – concluded Huawei.
