Thierry Breton, EU commissioner for internal market, has called for more EU member states to ban Chinese telecommunications firms Huawei and ZTE from their 5G networks due to national security risks. Breton urged countries to remove “high-risk” suppliers from their mobile internet infrastructure upgrades and emphasized the importance of speeding up decisions in his speech on Thursday. To date, only 10 EU countries have restricted or banned Huawei from their 5G networks, despite the adoption of a “5G cybersecurity toolbox” in January 2020 aimed at identifying the risks of accepting certain providers of 5G infrastructure into its rollout.
Breton also reminded telecoms operators concerned that it is time to address the issue and stated that the Commission will implement the 5G toolbox principles to its own procurement of telecoms services to avoid exposure to Huawei and ZTE. However, China said that it firmly opposes some EU countries’ ban on Huawei and that the Commission has no legal basis to prohibit the firm. Huawei and ZTE did not immediately respond to a CNBC request for comment.
EU’s Growing Concerns about China’s Influence in Development of Critical Technologies
The EU has previously described China as a “partner,” “economic competitor,” and “systemic rival.” However, it has recently been leaning towards the “system rival” part of that description, seeking to keep China close as a partner while also staying wary of its growing influence in the development of critical technologies. Ursula von der Leyen, the European Commission’s president, suggested earlier this year that the bloc should reevaluate its ties with Beijing, although she said it was not in the EU’s best interests to “decouple” from China. Instead, she said, it should look to “de-risk” its relationship with China.
The US and its allies, including the UK and Australia, have already barred Huawei from operating in their 5G networks, citing national security concerns. Washington officials allege that Huawei and ZTE technology could be used by Beijing for espionage. Both companies and Beijing have denied the allegations. However, operators have struggled to replace Huawei as the provider of infrastructure in their mobile networks, as industry executives say that Huawei’s technology is often cheaper and more advanced than that offered by rivals such as Ericsson, Nokia, and Samsung.
Breton’s comments follow news that Germany is considering whether to ban Huawei and ZTE from its 5G network due to alleged national security risks. In response, China’s embassy in Germany said it was “puzzled and strongly dissatisfied” by the reports. The tension between EU countries and China continues to escalate as the EU urges more member states to ban Huawei and ZTE from their 5G networks.
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