Europe is intensifying its battle against Chinese equipment, both in its electrical network and in its telecommunications infrastructure. The European Commission has again recommended earlier this week the exclusion of Huawei and ZTE equipment by local telecommunications operators, paving the way for a review of the Cybersecurity Regulation in which it is proposed mandatory elimination of high-risk suppliers.
A new touch. The European Commission has started the week with a reminder: member states must exclude Huawei and ZTE equipment from their telecommunications network. In January of this year, Europe published a draft establishing the mandatory withdrawal of “high-risk suppliers”, posing a formal veto on Chinese telecommunications companies.
It is a particularly sensitive issue in Spain, where communities like Catalonia have ignored European recommendations and they have renewed again recently with companies that use Huawei equipment.
The Generalitat case. Last March, the Generalitat of Catalonia renewed its contract with XCAT. A budget of 127 million euros to maintain Huawei as the main equipment supplier, despite the EU notice and challenges from Telefónica and Cellnex that paralyzed the process for a few weeks.
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In addition to the Catalan case, practically a third of Spanish 5G networks are from Huawei, with an estimated replacement cost between 400 and 1,000 million euros.
Beyond. It is not the only measure that Europe wants to implement against Chinese suppliers. The Commission also wants to protect itself in relation to renewable energies, vetoing access to community funds to those projects using converters made in China.
“Our risk assessments have confirmed threats, including manipulation of electricity production parameters, interruption of electricity generation and even unauthorized access to operational data. In practice, this could mean a blackout, a remote blackout of Member States’ networks leading to nationwide power outages.”
As with the network infrastructure, according to the Commission, this measure responds to a shield for security reasons, applicable from next November 1. Again, a blow to the giant Huawei, one of the main suppliers of solar inverters in Spain.
The Chinese response. China is no stranger to the measures being prepared by Europe, and has made it clear that it considers these proposed acts to be discriminatory and harmful to trade. Without detailing his plans, he has made it clear that he will take countermeasures.
The Swedish case. Decisions have consequences, and Sweden is a country that knows very well what happens if you ban Huawei on your telecommunications equipment. In 2020, the country banned the use of telecommunications equipment from Chinese manufacturers under the argument of national security. Although a priori this was a lifeline for Ericsson, the consequences were just the opposite.
China retaliated, and China Mobile expelled Eriscsson from its network infrastructure, going from 11% market share to 2%. In case Europe hits China again.
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was originally published in
Xataka
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Ricardo Aguilar
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