China is applying economic pressure on European countries not to exclude equipment from the Chinese telecom supplier Huawei from their 5G infrastructure. Doing so will have consequences for other trade, it is said.
Last week, a Danish newspaper reported on a secret meeting between the Prime Minister of the Faroe Islands and the Chinese ambassador to Denmark. The islands are largely dependent on the export of salmon, much of which is destined for the Chinese market. The Chinese ambassador is said to have threatened to revoke a free trade agreement currently on the table.
Further information emerged over the past weekend that the Chinese ambassador in Germany had issued a similar threat. Opposition is growing in Germany against the use of Huawei equipment in 5G networks. There is a bill on the table proposing a broad ban on āunreliableā 5G suppliers.
The new Italian Minister of Economic Affairs, Stefano Patuanelli, believes that the Chinese telecom company, which among others the United States accuses of espionage, should not be banned from the rollout of 5G. The Italian minister thus contradicts the Italian parliamentary committee for intelligence and security services, which advised excluding Chinese companies from developing the ultra-fast networks in Italy.
The U.S. government has lobbied heavily in Italy and other European countries, such as Germany, to prevent Huaweiās equipment from being used in their 5G networks. The U.S. also advised closely monitoring deals with the Chinese company ZTE. So far, both Huawei and ZTE deny all accusations.
Last week, Huawei responded to the findings of the Italian parliamentary committee by claiming that the company complies with Italian law and that any allegations against it are based on geopolitical reasons.
Furthermore, the Chinese company made an enticing statement by promising to invest 3.1 billion dollars in Italy. Telecom Italia is currently selecting suppliers to upgrade its network infrastructure. Huawei is also reportedly one of the main contenders.
Earlier this year, the British government allowed Huawei to assist in expanding the UK 5G network. The British National Security Council agreed last week that Huawei may contribute on a limited scale to the partial expansion of the network, thinking especially of antennas and other āless essentialā infrastructure. In the Netherlands, it is also being considered to allow Huawei in building the superfast internet network, but not for espionage-sensitive components.