Huawei protests EU’s phase-out guideline targeting vendor status, accuses commission of “discriminatory Judgments”

The telecom equipment manufacturer, headquartered in Shenzhen, released a statement in reaction to the EU’s guidelines, which called for member countries to gradually remove high-risk vendors like Huawei and ZTE Corp. from their telecommunications networks.

“This is clearly not based on a verified, transparent, objective and technical assessment of 5G networks. Restrictions or exclusions based on discriminatory judgments will pose serious economic and social risks,” Huawei said in the statement released on Saturday.

The European Commission’s decision followed the United States’ actions of restricting Huawei’s access to a broad range of American technologies, including chip manufacturing equipment and smartphone software.

Notably, the United States has exerted pressure on the European Union to adopt a more stringent approach towards Beijing due to escalating conflicts related to Taiwan and competition for dominance in areas such as artificial intelligence, chips, and quantum computing. By excluding Huawei from its operations in the EU, Chinese influence in the region could be significantly diminished.

Despite concerns raised by the European Commission, several EU member states, including Germany, continue to utilize Huawei products in their networks.

Meanwhile, Huawei Technologies Co. is looking to make Riyadh its headquarters for the Middle East amid a push by the Saudi government to position itself as a regional business hub and growing diplomatic and business ties with China, according to people familiar with the matter.

The Chinese company, which already has offices in the Saudi capital and other cities across the Middle East, is in talks with Riyadh authorities to upgrade its presence in the country, the people said, asking not to be identified as the information is private. 

A final decision hasn’t yet been made by Huawei, the people said. A spokesman for Huawei declined to comment. The company currently has headquarters for the region in Dubai and Bahrain.

(With inputs from Bloomberg)

Updated: 17 Jun 2023, 10:26 AM IST

The telecom equipment manufacturer, headquartered in Shenzhen, released a statement in reaction to the EU’s guidelines, which called for member countries to gradually remove high-risk vendors like Huawei and ZTE Corp. from their telecommunications networks.

“This is clearly not based on a verified, transparent, objective and technical assessment of 5G networks. Restrictions or exclusions based on discriminatory judgments will pose serious economic and social risks,” Huawei said in the statement released on Saturday.

The European Commission’s decision followed the United States’ actions of restricting Huawei’s access to a broad range of American technologies, including chip manufacturing equipment and smartphone software.

Notably, the United States has exerted pressure on the European Union to adopt a more stringent approach towards Beijing due to escalating conflicts related to Taiwan and competition for dominance in areas such as artificial intelligence, chips, and quantum computing. By excluding Huawei from its operations in the EU, Chinese influence in the region could be significantly diminished.

Despite concerns raised by the European Commission, several EU member states, including Germany, continue to utilize Huawei products in their networks.

Meanwhile, Huawei Technologies Co. is looking to make Riyadh its headquarters for the Middle East amid a push by the Saudi government to position itself as a regional business hub and growing diplomatic and business ties with China, according to people familiar with the matter.

The Chinese company, which already has offices in the Saudi capital and other cities across the Middle East, is in talks with Riyadh authorities to upgrade its presence in the country, the people said, asking not to be identified as the information is private. 

A final decision hasn’t yet been made by Huawei, the people said. A spokesman for Huawei declined to comment. The company currently has headquarters for the region in Dubai and Bahrain.

(With inputs from Bloomberg)

Updated: 17 Jun 2023, 10:26 AM IST