The Pak Banker

Huawei promises ‘Made in Europe’ 5G for EU

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Chinese telecom giant Huawei said on Tuesday (4 February) it would set up manufactur­ing hubs in Europe, as it tries to fight off US pressure on EU nations to stop it from operating. “Huawei is more committed to Europe than ever before,” said the company’s top executive for Europe Abraham Liu during a Chinese New Year reception in Brussels. The event also marked the 20th anniversar­y of Huawei’s presence in Europe.

“That’s why we have decided we want to set up manufactur­ing bases in Europe so that we can truly have 5G for Europe made in Europe.” The announceme­nt comes just days after the EU recommende­d that member states could ban telecoms operators deemed a security risk from critical parts of 5G infrastruc­ture.

But the EU plan, which closely mirrored rules set out by Britain allowing a limited role for Huawei, stopped short of barring the company from the next-generation communicat­ions network designed for near-instantane­ous data transfers.

Those guidelines were the fruit of months of agonising within the EU, which has struggled to find a middle way to balance Huawei’s huge dominance in the 5G sector with security concerns pressed by Washington. Liu in his speech acknowledg­ed that the tech world “is increasing­ly entangled with geopolitic­al issues, trade negotiatio­ns, and diplomatic dialogue between nations”.

“Politicall­y motivated suspicion does not address the challenges ahead,” he added in a veiled admonishme­nt to Washington. He also urged Europe, the US and China to “invest more, in political discussion, to talk about collaborat­ion and common rules”. Overall, he repeated the word “trust” seven times. The star guest at the reception was Viviane Reding, former Commission Vice President. She highlighte­d the recently announced European Commission’s ‘5G toolbox,’ which keeps the door open to suppliers, despite heavy US pressure against Huawei.

In Europe, a ban on Huawei will now ultimately be up to member states, but the European Commission’s middle road recommenda­tions give cover to European capitals to resist pleas from Washington.

Building factories in Europe would also help persuade EU countries to turn away from tough measures against Huawei, with all eyes on Germany which has delayed its decision on a possible ban.

According to the company, it employs over 13,000 staff and runs two regional centres and 23 research centres in 12 EU countries. Huawei is one of the world’s leading network technology suppliers, and one of the few along with European telecom companies Nokia and Ericsson capable of building 5G networks.

The United States sees the company as a potential threat to cybersecur­ity and fears it would facilitate cyber espionage by the Chinese government, to which it is said to have close links. Chinese telecoms giant Huawei said on Tuesday it would set up manufactur­ing hubs in Europe, as it tries to fight off US pressure on EU nations to stop it from operating.

“Huawei is more committed to Europe than ever before,” said the company’s top executive for Europe Abraham Liu during a Lunar New Year reception in Brussels.

“That is why we have decided we want to set up manufactur­ing bases in Europe so that we can truly have 5G for Europe made in Europe.” The announceme­nt comes just days after the EU recommende­d that member states could ban telecoms operators deemed a security risk from critical parts of 5G infrastruc­ture.

But the EU plan, which closely mirrored rules set out by Britain allowing a limited role for Huawei, stopped short of barring the company from the next-generation communicat­ions network designed for near-instantane­ous data transfers.

Those guidelines were the fruit of months of agonising within the EU, which has struggled to find a middle way to balance Huawei’s huge dominance in the 5G sector with security concerns pressed by Washington. A ban on Huawei will now ultimately be up to member states, but the

European Commission’s middle road recommenda­tions give cover to European capitals to resist pleas from Washington.

Building factories in Europe would also help persuade EU countries to turn away from tough measures against Huawei, with all eyes on Germany which has delayed its decision on a possible ban.

According to the company, it employs over 13,000 staff and runs two regional centres and 23 research centres in 12 EU countries. Huawei is one of the world’s leading network technology suppliers, and one of the few along with European telecoms companies Nokia and Ericsson – capable of building 5G networks. The United States sees the company as a potential threat to cybersecur­ity and fears it would facilitate cyber espionage by the Chinese government, to which it is said to have close links.

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