Europe speaks increasingly loudly about technological sovereignty, risky suppliers and the need to shield its networks. Brussels, Washington and several European partners They look at Huawei with suspicion. However, in the guts of the energy transition—in the inverters, connected batteries, and management systems that keep the grid stable—Huawei’s name appears again and again. And that dependence is so deep that no one in Brussels wants to say it too loudly. The Spanish case triggered everything. It all started with a 12.3 million euro contract for Huawei to provide the storage hardware for the Interior’s judicial wiretapping. What could have remained a technical file became a political earthquake after the formal warning from Brussels, which according to elDiario.es recalled that Huawei and ZTE “present higher risks than other suppliers.” The second blow came from the United States. As detailed by the Financial Timesthe presidents of the intelligence committees of the House of Representatives and the Senate asked to review the exchange of information with Spain for this contract. An unusual diplomatic signal between allies. The Spanish Government defended that “there is no security risk” and that the equipment complies with the National Security Scheme. Huawei, for its part, insisted that it does not have access to the data and that storage is “exclusively the customer’s.” Europe discovers its technological heel. According to an analysis by the European Council on Foreign Relations (ECFR), Europe has delivered more than 220 GW of solar capacity to inverters manufactured by Chinese companies, with Huawei as the dominant player. In fact, from POLITICO they reaffirm it with the fact that 65% of the solar power installed in Europe depends on Chinese technology, and that Huawei is the largest supplier of inverters on the continent. The concern is no longer just economic: it is structural. Inverters are the digital brain of the energy transition: they regulate voltages, stabilize frequencies, process data, receive firmware updates and can be turned off—or altered—remotely. According to experts cited by POLITICOsimultaneously manipulating thousands of these devices could generate serious disturbances in the electrical grid. Researchers consulted by the ECFR They warn that, if compromised, these devices could “optimize the impact” of failures and amplify them within the network. Added to this is a detail that highlights European analysis: China keeps its market practically closed to Western investors thanks to a network of cybersecurity regulations that function as a trade barrier. Europe, on the other hand, completely opened its own. And this asymmetry has contributed to the loss of share of the European industry compared to Chinese manufacturers. The real cost of trying to cut the cord. This dependence would be manageable if Europe could easily replace Chinese technology. But the reality is different. According to Xataka Mobilereplacing Huawei equipment in Spanish networks would cost 4,000 million euros for telecoms alone. In Germany, according to Article 14removing components from Huawei would mean 1,000 million for Deutsche Telekom and 700 million for Telefónica. The Energy Newspaper collects internal estimates of the sector which speak of cost overruns of 20% to 40% in mobile networks, smart grids and connected energy infrastructure if Chinese suppliers are excluded. And then there are the geoeconomic consequences. Europe knows well the risks of retaliation: when Sweden banned Huawei in 2020, China counterattacked in its domestic market. Ericsson went from having almost 11% share to less than 2%. So with Beijing dominating key sectors such as solar panels, critical materials or batteries, few governments are willing to repeat that scenario. How can you get out of this mess? Europe has written a roadmap for a problem that has no roadmap and that is why the European Commission is moving in several simultaneous directions: Turn the 5G Toolbox into binding legislation. According to Bloombergwould be the largest European regulatory movement in this decade: going from a recommendation to a legal obligation to remove Huawei and ZTE from critical networks. Extend the logic of 5G to the entire connected infrastructure. How POLITICO progressedBrussels is preparing a new “toolbox” for ICT supply chains that will include solar energy, smart grids, connected cars and smart cameras. Condition European funds. Brussels studies denying financing to projects using “high-risk” vendors, and impose mandatory audits of firmware, cloud, and updates. Multi-pillar regulatory shield. According to The Energy Newspaperthe tandem NIS2 + Data Act + Network Code + Cyber Resilience Act will leave little room for companies subject to foreign intelligence laws. Partial vetoes by Member States: Lithuania banned remote access from Chinese manufacturers to installations of more than 100 kW, Czech Republic has issued alerts on Chinese components in energy networks and Germany has been analyzing for a couple of years the Huawei equipment installed in its infrastructure. The message is clear: Europe wants to protect itself. What is not clear is how to do it without slowing down its energy transition. Huawei moves forward as Europe debates how to expel it. While Brussels designs barriers, Huawei is not retreating. It is in full return and as my colleague in Xataka explained: It has returned to manufacturing 7nm Kirin chips without accessing TSMC. HarmonyOS already surpasses iOS in China and is preparing to expand to 60 countries. Its automotive division has become the “digital brain” of several Chinese manufacturers. Watches, headphones and wearables keep the brand alive in Europe, cultivating a loyal base. The more autonomous Huawei becomes, the harder it will be for the EU to limit its presence. The dilemma that will mark the next European decade. The Commission seeks new rules, calibrates sanctions and repeats that it is about “strategic security.” The reality is that Washington is tightening and Beijing is not giving up, but European capitals are trying to navigate between two giants that do not accept half measures. The reality is that the energy core of the continent – those networks that must power millions of electric cars, absorb gigawatts of renewables and sustain a digitalized economy down to the last meter – continue to depend on and be built by … Read more
