For Huawei, this is a new spike. In a report released earlier this week, Huawei’s Cybersecurity Assessment Center (HCSEC), under the supervision of the British government, estimated that the Chinese telecoms champion and 5G’s products did not yet meet the standards in security. Despite “Sustained progress”, underlines the report consulted by the Financial Times, new problems were discovered. In 2019, it was the HCSEC which warned the British authorities against “New risks” that Huawei equipment would weigh on the security of the country.
It was, in part, based on this expertise that London ended up driving Huawei out of the 5G market across the Channel. Other countries have also cited the work of the HCSEC to justify limitations with regard to the Chinese group. Many European countries have chosen this path. This is particularly the case of France, and recently of Sweden, which banned Huawei from participating in the deployment of 5G.
Huawei still suffers from US sanctions
The telecoms equipment manufacturer Ericsson is now paying the price. Huawei’s Swedish rival last week said it expects market share “Significantly lower” of the 5G cake in China. A hell of a blow. China is indeed a huge market, and therefore strategic. Clearly, this would be Beijing’s retaliatory measure in response to the Swedish ban.
Huawei is doing, in parallel, its possible not to be ejected from the Old Continent. The Shenzhen group is leading a major lobbying campaign to demonstrate that its 5G uses less energy, that it reduces its carbon footprint, that it is making considerable efforts in terms of cybersecurity, that it is doing everything to support European startups … But he still faces heavy US sanctions. The United States, which accuses Huawei of spying on behalf of Beijing, has notably prohibited the Chinese industrialist from supplying itself with “made in the USA” technologies.
To rule out Huawei, the United States is also trying to disrupt the telecom equipment industry. Washington, which no longer has any big names in this sector, now praises the merits of an “open” 5G, to make more room for its own companies.