Huawei has voiced strong concerns regarding the European Union’s revised Cybersecurity Act, particularly the EU’s new approach to 5G and cloud infrastructure security. The company argued that the EU’s proposal unfairly targets non-European suppliers based on their country of origin, without relying on factual evidence or technical standards. Huawei claims that such a proposal violates the EU’s basic legal principles of fairness, non-discrimination, and proportionality, and could conflict with its WTO obligations.
The updated Cybersecurity Act aims to boost security for critical infrastructure by addressing the risks posed by suppliers from high-risk countries. While the proposal does not specifically mention Huawei or ZTE, it targets the high dependency on non-European suppliers and the risks associated with their equipment. Huawei’s response came swiftly, emphasizing that the legislative changes were problematic for global trade fairness and could harm EU-China relations in the telecom industry.
Huawei’s Position on the EU Cybersecurity Act
In their statement, Huawei stressed that using a supplier’s country of origin as a deciding factor, rather than focusing on the quality and safety of the products, undermines the European trade principles. Huawei further asserted that such measures, without a solid factual or technical basis, create barriers that could harm both innovation and economic growth, going against international fair trade practices.
The EU Cybersecurity Act revisions are part of a broader effort by Brussels to improve 5G network security in Europe, a critical area of concern after the widespread adoption of Huawei 5G equipment across the continent. The EU Toolbox for 5G security, launched in 2020, is a framework designed to reduce cybersecurity risks related to telecom equipment vendors. Despite this, only a limited number of EU member states have fully implemented the toolbox’s recommendations.
Impact of the Cybersecurity Act on Huawei’s European Operations
Huawei’s involvement in European 5G networks and its cloud services has faced increasing scrutiny due to geopolitical concerns. The latest revisions to the Cybersecurity Act could disrupt Huawei Cloud’s operations, particularly in regions where the company provides essential cloud infrastructure. Although Huawei’s market share is smaller in the cloud sector compared to larger players, it has established a presence in countries like Ireland and Turkey, helping drive digital transformation for numerous European enterprises.
Huawei remains committed to providing high-quality services to European customers, despite the growing regulatory challenges. In response to the EU Cybersecurity Act, the company has indicated that it will continue to monitor the legislative process and protect its legal interests in the region.
Conclusion: Huawei’s Long-term Strategy in the EU
Huawei’s concerns over the EU Cybersecurity Act reflect ongoing tensions between global trade norms and national security concerns. While the EU pushes forward with its efforts to safeguard 5G infrastructure, the company continues to argue for a more evidence-based approach, where decisions are made based on technical merits rather than geopolitical considerations. Huawei’s response highlights the challenges faced by non-EU vendors in navigating the complex landscape of European regulatory policies.
