banning

The European Commission (EC) is exploring ways to get member states stop using telecommunications equipment from Chinese sellers like Huawei or ZTE. Tension between Europe and China is escalating once again, and it is not at all clear that this decision will be beneficial for European companies. Huawei in Europe no, thanks. On Bloomberg cite sources close to these plans and talk about how the vice president of this organization, Henna Virkkunen, has adopted a very forceful position. Virkkunen apparently wants to completely stop the use of Huawei telecommunications equipment with an eye-catching argument: making that a legal requirement. It wouldn’t matter what each country thought.. Years ago the EU has already recommended avoiding Chinese telecommunications equipment as far as possible, but it was a suggestion without a mandatory nature and the member states were the ones to decide in this area. Spain, for example, has continued using this equipment. The Commission’s theoretical proposal would legally force EU countries to break commercial ties with these companies. Failure to comply with the requirement could expose these countries to economic sanctions. Before they were suggestions. At the beginning of 2020 the European Union announced those recommendations under the name “5G Toolbox”. At that time they warned of the risks but left room for maneuver to the member states. Now we go from a soft recommendation to a legal imposition, because that “Toolbox” was voluntary. The national security argument. The argument is the same as that used in the past: Euro officials fear the risks associated with using communications equipment from companies (such as Huawei) so closely linked to the Chinese government. Maintaining these teams, this strategy suggests, could compromise national security. And be careful with countries outside the EU. The EU’s plan is not only for member countries to abandon these teams, but to pressure countries outside the EU to do so as well. Thus, it would try to block the use of program funds Global Gateway if those who use them spend them buying Huawei equipment. The operators, harmed. European telecommunications companies also appear to oppose this plan. First of all, they indicate in Bloomberg, because Huawei technology is often cheaper and even superior to Western alternatives from Nokia or Ericsson. And second, because replacing existing equipment is extremely expensive and can delay current and future deployments. internal division. In the absence of confirmation of the EC plan, there is another key element: there is internal division among EU members. Germany and Finland continue to deliberate on what restrictions to impose, while Spain and Greece continue to purchase telephone equipment from these manufacturers. What they say in China. Lin Jian, spokesperson for the Chinese Foreign Minister, has indicated that when certain countries forcibly eliminate telecommunications equipment from Chinese firms like Huawei, they not only slow down their technological progress, but also suffer economic losses. He further added that “We urge the #EU to provide a fair, transparent and non-discriminatory business environment for Chinese companies and avoid undermining business confidence in investing in Europe.” Let’s remember Sweden. In 2020, Sweden decided to ban the use of telecommunications equipment from Chinese manufacturers with the same argument that we already know about national security. That theoretically favored the local company, Ericsson, but its CEO criticized the Swedish government’s decision precisely because he knew what was going to happen. Revenge is served on a cold plate. And what happened is that China retaliated. A few months later, China Mobile announced budgets and contracts to boost the country’s telecommunications infrastructure, and Ericsson was the biggest loser. The company had almost 11% market share before the government’s decision: today its share does not reach 2%. Dangerous veto. If confirmed and made effective, the veto on being able to use telecommunications equipment in the European Union is dangerous precisely for the same reason that happened with Sweden. China continues to be a great commercial ally of China despite being more aligned with the US in areas such as semiconductors. With these types of actions, Europe positions itself even more closely with the Trump government, something that is somewhat surprising because Europe already came out badly after the agreement with tariffs. In Xataka | Huawei has a plan to deal the final blow to NVIDIA in China: a supernode of 15,000 processors