The European Commission studies banning Huawei and ZTE in the mobile networks of member countries

The European Commission is considering making the 2020 recommendation that urged Member States to exclude suppliers considered high risk, such as Huawei and ZTEof its telecommunications networks. The proposal, promoted by Vice President Henna Virkkunen, seeks to strengthen the security of critical infrastructure at a time of growing tensions with China.

An open debate in Europe

According to reports BloombergAlthough decisions about infrastructure fall to national governments, the initiative aims to force European Union countries to follow community security guidelines. In case of non-compliance, the States could face infringement proceedings and financial penalties.

In addition, extending the restrictions is being studied to fiber optic networkskey to the deployment of high-speed Internet. The Commission is also considering measures to discourage non-EU countries from using equipment from Chinese suppliers. Among them, the possibility of withdrawing funds from the Global Gateway program to projects that include Huawei technology is contemplated.

As the media explains, Commission spokesperson Thomas Regnier has stressed that “the security of our 5G networks is crucial for the economy”, although he avoided confirming a definitive veto. For its part, China’s Ministry of Foreign Affairs warned that the forced withdrawal of Chinese equipment could slow technological progress and generate economic losses.

The possible restrictions have had an impact on the stock market. Nokia shares rose as much as 2% in Helsinki, while Ericsson rose 1.5% in Stockholm. Both European manufacturers could benefit from a possible veto of their Chinese competitors.

The discussion about Huawei and ZTE divides European countries

While the United Kingdom and Sweden have already applied total bans, others such as Spain and Greece maintain the presence of Chinese suppliers in their networks. In fact, this could affect, taking a close example, the contract of the Generalitat of Catalonia with Sirt and Huawei to deploy its network. This disparity worries sectors that warn of security risks derived from an unequal approach.

The debate is not new. During Donald Trump’s first term, the United States vetoed Huawei and pressured Europe to follow the same path. These postulates continued during his second term. For this reason, the Commission then prepared the so-called “5G toolbox”, which recommended excluding risky suppliers, although without binding force. Now, Brussels seeks to go a step further and turn these recommendations into mandatory standards for all member states.