Beijing (Brussels Morning Newspaper) – Chinese Foreign Ministry spokesperson Lin Jian on Tuesday stated that limiting or banning Chinese companies in the European Union would violate principles of market fairness and competition regulations.
Lin responded to a Bloomberg report stating that the EU is contemplating mandating its member states to eliminate telecommunications equipment produced by Chinese technology companies Huawei and ZTE.
How has China responded to the EU’s reported plans?
He said that restricting or banning Chinese companies in the EU
“without any legal basis or factual evidence”
would represent a violation of market principles and fair competition rules.
“We urge the EU to provide a fair, transparent and non-discriminatory business environment for Chinese companies and avoid undermining confidence of companies in investing in Europe,”
he added.
He added that
“facts have shown”
that such moves slow the host countries’ technological progress and
“incur enormous economic losses.”
Why is the EU considering a ban on Huawei and ZTE?
A day earlier, Bloomberg reported that the EU’s executive institution, the European Commission, was exploring ways to force European Union member nations to phase out Huawei Technologies Co. and ZTE Corp. from their telecommunications networks.
EU Commission Vice President Henna Virkkunen aims to turn the 2020 recommendation by the European Commission to cease using high-risk vendors in mobile networks into a binding legal requirement.
As reported, Virkkunen’s strategy goes further than just mobile networks. She is also exploring options to cut down reliance on Chinese suppliers for fixed-line broadband infrastructure.
What reasons does the EU cite for targeting Chinese firms?
Sources say EU officials are concerned that depending on companies with close links to the Chinese government could jeopardise Europe’s national security and technological independence.
Furthermore, the EU institution is said to be evaluating financial strategies to reduce reliance on Huawei and ZTE outside the EU. Bloomberg also reported that a proposal currently being considered would require recipients to exclude Chinese-made equipment from EU-supported telecom projects to qualify for Global Gateway funding.
How are EU member states divided on the Huawei issue?
Earlier in 2023, China also strongly opposed some EU countries’ bans on Huawei, claiming the European Commission lacked legal grounds and factual evidence to prevent the Chinese telecom firm, Reuters reported.
Since then, several countries, including Germany, have been slow to adopt the EU’s security measures for 5G networks, which were agreed upon three years ago to limit the use of “high-risk vendors’ like Huawei amid worries about potential sabotage or espionage.
Telecom operators across Europe have been using Huawei gear because they were cheaper than rivals’ and work as good, making it difficult for companies to choose costlier options.
Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
