EU ban on Huawei will curb competitiveness: Opinion

A few days ago, a report appeared with insights that the EU or European Union is considering a region-wise ban on Huawei. If this happens, Huawei’s downfall in the EU’s network equipment will mark the biggest decline in the competitiveness of the region.

Huawei has also shared its stand on the entire matter and we have also shared that below. However, let’s first examine the situation here.

What’s happening?

EU commissioner has recently held a meeting and told bloc’s telecoms ministers so-called “high-risk vendors” from 5G infrastructure. This meeting was taken as a recommendation and all member states agreed.

The report mentions that Huawei is at the core of this discussion. It’s possible that the outcome won’t be in favor of the Chinese tech maker.

Huawei’s Reply:

Huawei said it opposed politicizing this business segment “No court has ever found that Huawei had engaged in malicious intellectual property theft, or required Huawei to pay damages for infringement on others’ intellectual property.”

“Assessing cyber security risks without sticking to technological standards, or excluding specific suppliers from the system without proper technological evaluation, is a violation of the principles of fairness and non-discrimination, and also against the laws and regulations of the European Union and its member states.” the company added.

Competitiveness:

In my view, it would be a direct attack on the EU’s promise to provide an open market for all of the business companies. Huawei has the most advanced and efficient network equipment gears.

As of now, Huawei is the rank 1 holder in all of the 5G technologies in network equipment and ranks first in the 5G technologies patent. The region’s native competitors are Nokia and Ericsson.

Looking at the record, Huawei provides cost-efficient network gear, which is very suitable for the partners. According to the data, Chinese vendors had supplied more than 50 percent of the 5G equipment in 31 European countries as of the end of 2022.

In the face of strong US lobbying and similar EU backers, Germany still refrained from banning Huawei’s 5G network.

Huawei’s popularity shows that it’s very competitive in every market around the globe. Therefore, cutting it down from the race in the name of unverified “risk” is very bad for market competitiveness.

“Exclusions based on non-technical judgments also pose serious economic and social risks. It would hamper innovation and distort the EU market, driving up the costs of digital services for consumers,” said a Huawei Europe spokesperson.

We don’t need to explain further, however, the motive of the EU is clear and the ban on Huawei will announce the bloc as a no-competitive zone.

(Source)