China Faces Possible Expulsion from European 5G Networks... Huawei 'Furious'

EU Considers Banning Huawei Citing Security Risks

The European Union (EU) is reportedly considering banning member states from using Chinese telecommunications equipment from Huawei due to security risks, prompting Huawei to protest the move as an 'illegal disposition.'

According to the South China Morning Post (SCMP) in Hong Kong on the 8th, a Huawei spokesperson in Europe stated in a press release that "(the ban) benefits no party" and "strongly opposes the politicization of cybersecurity assessments." Huawei further emphasized that "exclusion based on non-technical judgments poses serious economic and social risks," adding, "This will hinder innovation, distort the EU market, and increase the cost of digital services for consumers."

[Image source=AP Yonhap News]

Earlier, major foreign media reported that the EU is considering a mandatory ban preventing member states from using telecommunications equipment from companies deemed security risks on 5G networks, including Huawei. The European Commission issued guidelines in January 2020 allowing member states to restrict or ban the supply of critical components from suppliers considered security risks in building 5G networks. However, it is known that only about one-third of member states have adopted and implemented these measures so far.

According to research by consulting firm Strand Consult, as of the end of last year, Chinese companies held over 50% of the 5G telecommunications equipment market share across 31 European countries. SCMP reported that in Germany, the largest economy within the EU, Chinese 5G equipment accounts for 59% of the market. Additionally, major countries such as Italy, Poland, Portugal, Austria, and Spain have continued purchasing Chinese 5G equipment. In contrast, the UK, Denmark, Sweden, Estonia, Latvia, and Lithuania have already excluded Huawei from their 5G network markets.

Huawei announced that its sales in the Europe, Middle East, and Africa (EMEA) region increased by 13.5% year-on-year last year, reaching 149 billion yuan (approximately 27.1656 trillion KRW). This accounts for about 25% of its total sales. Before U.S. sanctions in 2018, EMEA sales accounted for 28% of the total, amounting to 204.5 billion yuan.

The Chinese Ministry of Foreign Affairs criticized the EU's consideration of banning Huawei telecommunications equipment, stating, "The U.S. and some European countries continue to claim that Huawei poses security risks but have failed to provide evidence," and added, "The U.S. mobilizing countries to suppress Chinese private companies like Huawei is a typical coercive diplomacy and technological exclusion." At a regular briefing on the 7th, Foreign Ministry spokesperson Wang Wenbin said, "Huawei has not endangered the security of European countries but has promoted the development of Europe's telecommunications sector and created significant economic and social benefits," and criticized, "If Europe ignores these facts and insists on banning Huawei, it blatantly violates the principles of market economy, free trade, and fair competition that they have always proclaimed." Wang also added, "Europe should align its words with actions and make decisions based on economic rationality and their own interests."