The EU Considers Mandatory Ban on High-Risk 5G Suppliers
According to sources, the European Union is contemplating a mandatory ban on 5G suppliers considered to be security risks, including the Chinese telecom company Huawei. Officials are concerned about some member countries dragging their feet on the issue amid rising anxieties in Brussels. While EU member states agreed on recommendations in 2020, only a third of them banned Huawei from parts of the bloc’s 5G communications. A mandatory ban may be introduced if countries, such as Germany, continue delaying. Huawei has responded by opposing the politicization of cybersecurity assessment.
The Risks of High-Risk 5G Suppliers
Brussels is particularly worried about being dependent on Chinese vendors for 5G networks and the long-term cost that this dependence would incur. It warns that critical dependencies may become dangerous, particularly given concerns about China’s business practices, human rights record, and technology dependence. Germany has expressed worries about Deutsche Telekom’s ties with Huawei, while Portugal is preparing to ban some of Huawei’s 5G equipment in a political U-turn. Denmark, the UK, Latvia, Estonia, Lithuania, and Sweden have already prohibited the company from their 5G infrastructure.
EU Recommendations and Potential Ban
The majority of the EU countries have not excluded high-risk suppliers from tech investments, despite recommendations that ranged from supplier diversification to certification requirements. EU internal market commissioner Thierry Breton told the bloc’s telecoms ministers in a meeting last Friday that only a third of the bloc’s countries had taken the recommended actions, which he regards as insufficient. He underscores that this lack of progress puts the security of the union at risk. The EU is set to report on progress next week, and while it is unlikely to impose new rules before the current Commission mandate ends in 2024, Brussels may make a mandatory ban if progress stalls.
Additional Piece
The US administration and its allies have been pushing for a complete prohibition of Chinese telecom companies, such as Huawei and ZTE, from 5G networks, citing national security concerns. Concerns linger that these companies could use their technology to spy on or sabotage Western powers. The US government has imposed restrictions to curb China’s technological advancement, prohibiting American companies from selling components or software to Chinese technology firms. Due to these actions, Huawei anticipates that its annual revenue will drop by at least $30 billion, resulting in $100 billion loss in the next five years.
Additionally, Beijing and Washington have been in a trade dispute since 2018, imposing and escalating tariffs on each other’s goods, which have slowed global growth. Chinese and European countries have criticised the US’s actions, calling them a way to protect its technology base. Recently, Eric Xu, Huawei’s rotating chairman, urged Washington to adjust its policies on export controls and network security, stating that present restrictions limit technological advancement and will not improve cyber-security.
Given that China is highly invested in the telecommunications industry as part of its efforts to become a global leader in technology, it is not surprising that the EU is concerned about its dependence on Chinese vendors in 5G networks. This situation highlights the increasing concern between the EU and China over human rights issues and the competition for global dominance in the tech industry. The EU may need to employ a balance between banning high-risk suppliers and ensuring its technological advancement while avoiding geopolitical risks that could harm the union’s interests.
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The EU is considering a mandatory ban on member states using companies deemed to be security risks in their 5G networks, including Chinese telecom group Huawei, according to officials with knowledge of the discussions.
The move comes as concerns grow in Brussels that some national governments are dragging their feet on the issue, officials told the Financial Times.
Only a third of European Union countries banned Huawei from critical 5G communications parts of the bloc despite recommendations made by Brussels to exclude high-risk suppliers from tech investments, EU internal market commissioner Thierry Breton told bloc’s telecoms ministers in a meeting last Friday. “This is too little. And it exposes the collective security of the union,” he said.
THE recommendationsthat were unanimously agreed by member states in 2020, ranged from certification requirements to supplier diversification.
The guide fell short of a ban, but people with first-hand knowledge of the matter said the EU could introduce a mandatory ban on companies deemed to pose a security risk, such as Huawei, if member states, including Germany, continued to delay.
The European Commission declined to comment. The bloc’s executive arm is scheduled next week to report on progress across the bloc in implementing the recommendations.
New rules imposing a ban are unlikely to come before the end of the current European Commission’s five-year mandate in 2024, given how long it takes for any new law to gain support from the European Parliament and member states.
Huawei he said he opposes politicizing cybersecurity assessment. “Assessing cybersecurity risks without adhering to technology standards, or excluding specific vendors from the system without proper technology assessment, is a violation of the principles of fairness and non-discrimination, as well as against the laws and regulations of the European Union and its member states.”
The company said, “No court has ever found that Huawei engaged in malicious theft of intellectual property or required Huawei to pay damages for infringement of the intellectual property of others.”
Washington accused Huawei in particular of being so a criminal enterprise that he had stolen from US companies, violated sanctions against North Korea, and made false statements to the FBI. He has urged US allies to ban the company from their critical communications infrastructure.
Thierry Breton, European Commissioner for the Internal Market, has warned that the lack of progress in eliminating high-risk companies from communications networks puts the security of the bloc at risk © Olivier Hoslet/Pool/AFP/Getty Images
Officials in Germany have expressed concern about ties between Deutsche Telekom and Huawei. Earlier this year Berlin said it was reviewing the use of Chinese components in its 5G infrastructure and whether a change in the law was needed.
Officials familiar with the discussions in Brussels warned of the “long-term cost of dependencies” on China, just as the bloc had relied on Russian energy supplies before the war in Ukraine, if the entire EU didn’t ban Huawei. “We know what it’s like to depend on others,” said one.
The latest warnings come at a time of growing concern in the EU over its technology dependence on China, the country’s business practices and Beijing’s human rights record.
At last week’s meeting with telecoms ministers, Breton warned of the risks of being too exposed to Chinese vendors. “My main message to member states was to remind them of the urgent need to act to avoid creating major vulnerabilities that would be difficult to reverse,” he said.
The EU had already been able to “reduce or eliminate” its exposure to geopolitical risks in other sectors such as energy, he said, warning: “We must do the same for 5G networks: we cannot afford to maintain critical dependencies which could become a weapon against our interests”.
The push comes as a number of European nations are reevaluating their dependence on China for critical telecommunications infrastructure. Portugal is preparing to ban Huawei by some 5G equipment in a political U-turn. The country is one of Europe’s largest per capita recipients of Chinese investment.
Denmark, Sweden, Estonia, Latvia and Lithuania in the EU, plus the UK, have already banned the company from their 5G infrastructure.
Additional reporting by Anna Gross in London
https://www.ft.com/content/a6900b0f-08d5-433d-bfb0-f57b6041e381
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