The European Union (EU) is considering a potential ban on the use of equipment that may pose a security risk in 5G networks. This includes equipment from Chinese vendors, such as Huawei. The report states that Chinese vendors had supplied over 50% of the 5G equipment in 31 European countries as of the end of 2022.
In response to the potential ban, Huawei, a Chinese telecommunications giant, criticized the EU’s plan, calling it unfair and unlawful to politicize technology assessments. Huawei argued that the ban would have negative economic and social consequences, hamper innovation, and drive up costs for digital services consumers. The company emphasized that there is no evidence of backdoors in its equipment.
The EU’s consideration of the ban follows Brussels’ recommendation in 2020 for member states to ban or restrict Huawei in their 5G networks. However, only a third of EU countries have implemented such measures. The proposed ban is unlikely to take effect before 2024, when the term of the current European Commission ends.
If the EU proceeds with the ban, it would deliver a significant blow to Huawei, which has been extensively involved in Europe’s 5G rollout. The US has been pressuring its allies to boycott Chinese 5G technology, and some European countries have taken steps to restrict or ban Huawei from their networks.
Germany, as Europe’s largest economy and China’s largest trade partner in the EU, acquired a significant portion (59%) of its 5G equipment from Chinese vendors, with Huawei holding a higher market share in Berlin than in Beijing. Other major European economies, including Italy, Poland, Portugal, Austria, and Spain, have also continued to purchase substantial amounts of Chinese 5G equipment.
Huawei has been working to maintain its presence in the European market, partnering with local operators and participating in 5G infrastructure projects. Although the company does not disclose detailed revenue breakdowns, it stated that sales in the Europe, Middle East, and Africa (EMEA) region grew 13.5% to 149 billion yuan (US$20.9 billion) in 2022, accounting for nearly a quarter of its total revenue.
It is important to note that the information provided is based on the Financial Times report from June 8, 2023, and the situation may have evolved since then.
