EU's Plan to Shun Chinese Telecom Giants Backfires

The European Commission is exploring ways to compel European Union member states to phase out Huawei Technologies Co. and ZTE Corp. from their telecommunications networks, Reuters and other outlets reported on November 11.

Claims by the EU reiterating security risks associated with Chinese telecom vendors remain unsubstantiated and are utterly absurd.

Similar allegations, frequently amplified by the U.S., suggest the Chinese equipment could contain backdoors enabling cyberattacks. However, no concrete evidence proving such security risks exists.

The German cybersecurity agency has explicitly stated that it has evaluated Huawei's products from around the world and found no suspicious components or backdoors.

In the past, Britain's intelligence agencies also claimed "any security risks Huawei posed could be managed".

In reality, Chinese vendors maintain a substantial presence in Europe's 5G market.

Forcing the removal of Chinese equipment runs counter to market dynamics and would impose significant costs on the EU.

Barclays Bank estimates that replacing Huawei's infrastructure in Germany alone could cost approximately $2.9 billion, while raising the risk of technical disruptions to 5G operations.

The UK government has acknowledged that banning Huawei's equipment would cost up to $3.1 billion and delay the country's 5G rollout by two to three years.

Although market restrictions in the EU may affect Chinese telecom enterprises' operations in Europe, it is unlikely to diminish their global leadership. Huawei still retains strong market reach and growth potential.

Research by Omdia, a technology research group, reported in August that Huawei leads the wireless access network market in three of the world's five major regions: the Asia-Pacific and Oceania, the Middle East and Africa, and Latin America and the Caribbean.

By mid-2025, Huawei held an estimated 31 percent share of the global telecom equipment market, far surpassing second placed Nokia at 14 percent.

In October, The Information Technology and Innovation Foundation (ITIF) stated in its report that as of September 2025, over 3.2 billion people outside China resided in countries that use 5G networks that rely on Huawei equipment.

The prominence of Chinese vendors in Europe stems from their competitive product performance and price — an outcome of normal market competition.

Light Reading highlighted Huawei's role as a pioneer in Time Division Duplex (TDD) 5G technology, and a leader in commercializing Gallium Nitride (GaN) power amplifiers-advantages, that make Huawei a preferred supplier for operators worldwide.

Critically, Chinese telecom enterprises are doubling down on research and development (R&D) as a core strategy against external pressures.

The ITIF report noted "between 2013 and 2020, Huawei increased its real R&D expenditure by more than threefold, surpassing that of any other peer company."

After U.S. sanctions, Huawei's R&D intensity surged to an average of 20 percent of revenue annually between 2019 and 2023, higher than almost all major international competitors in the telecom equipment sector.

Led by Huawei, Chinese telecom companies are building core competitiveness through sustained technological innovation.

Neither unsubstantiated security allegations nor market access barriers can halt the progress of China's telecom technology and industry. Ultimately, the EU's attempts to exclude Chinese vendors from its market may harm its own interests.

Source: Science and Technology Daily