Amidst the EU’s planning to ban Chinese 5G network technologies, countries like Germany and Spain are backing Huawei for telecom solutions. This counterattack against the European Commission seems to be a reaction to China’s warning.
Bloomberg reported that Germany and Spain are supporting Huawei 5G tech solutions instead of adhering to the EU’s sanction plan, which is an unexpected move!
The Commission was about to prohibit Chinese tech suppliers from its network infrastructure over new cybersecurity rules. Though it looks like the recent caution issued by the Beijing administration has done a good job.
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Some officials from Germany and Spain revealed that restricting Huawei 5G network products in their countries at the EU level can risk retaliation. At the same time, it can lead to more expensive AI infrastructure as Chinese tech is quite cost-effective.
If the ban comes into action, the mobile companies in Germany and Spain can take more than three years and will need to spend over 3.4 billion euros to 4.3 billion euros to remove the Chinese-based network technology.
Following these discussions, German Economy Minister Katherina Reiche commented on this topic during a visit to Beijing, saying the EU should ensure that any measures it takes on Chinese trade don’t affect the bloc’s exports to the country.
“As an exporting nation, we have two interests. We need to counter unfair competition, for example, in steel and ferro alloys, with appropriate measures, while at the same time ensuring that our companies can continue to export.”
Huawei says that such a proposal to phase out Chinese network tech suppliers from the entire infrastructure violates the EU’s basic legal principles of fairness.
Ministers and officials from Germany and Spain have made various trips to Beijing in the past few years. While they believe the member states must continue having an adequate participation in the decision process, they also know the consequences of removing cost-effective network solutions and beginning things from scratch.
(Image Credits: Huawei/X)
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