Huawei is keen on developing 5G technologies and infrastructure and Europe is the company’s largest market outside Asia. It’s also a market where 5G will be rolled out next year, but the Chinese telecommunications giant may not be allowed to provide equipment for the new, super-fast networks.
“Companies are making their decisions about their core network technology,” said Ben Wood, chief of research at technology analyst CCS Insight. “Those are decisions which are implemented and then sustained for a decade, so this is a very, very important crossroads for Huawei and these kind of moves are very unhelpful, the fact that this has all blown up at this time,” said Wood referring to the recent arrest of Huawei’s Chief financial officer in Canada over bank fraud.
“We reject any suggestion that we might pose a threat to national security,” said a spokeswoman for Huawei in an emailed statement to Bloomberg. “Cyber security should not be politicized, and equipment vendors should not be treated differently based on country of origin.”