These statements were “a little preventive,” said Carisa Nietsche, a researcher at the Center for a New American Security, a think tank in Washington.
But there is “the beginning of a fundamental change in Europe,” said Nietsche.
European countries and mobile operators are now concerned that Huawei will not be able to deliver the promised 5G infrastructure as the new U.S. export controls have put a massive strain on its business, she said.
Huawei’s 5G business in great danger
That would turn out to be too true.
Without these chipsets, according to analysts from the brokerage firm Jefferies, Huawei cannot build 5G base stations and other devices.
“Because of the current direct export rule that the United States introduced, I really think Huawei’s 5G device business is in grave danger,” Jefferies analyst Edison Lee said recently when speaking to investors.
“If the law doesn’t change and tensions between the US and China don’t subside, I think there’s a big risk that Huawei won’t be able to offer 5G devices from early next year,” he added.
Huawei spokeswoman Evita Cao was asked to comment on the story and said, “We continue to receive support from our customers,” without going into detail.
The enterprise said in May that it “categorically rejects” the recent US sanction and describes the new rule as “discriminatory.”
“It will have a serious impact on a variety of global industries,” and will affect collaboration within the global semiconductor industry, “said Huawei in a statement.” We expect our business to be inevitably affected, “he added.
This can already happen in the UK.
“I am not a Sinophob, I am not drawn into Sinophobia,” said Johnson on Tuesday. But “I want our critical national infrastructure to be adequately protected from hostile state providers, so we have to strike that balance.”
Huawei announced earlier this year that it had signed 91 commercial 5G contracts, more than half (47) are in Europe, 27 in Asia and 17 in other parts of the world.
Critics also say Beijing could force Huawei to spy on other nations. According to Huawei, this has never happened before, and if it did, the company would reject such orders.
Despite Beijing’s independence, Huawei is involved in disputes between China and the United States, and increasingly between the European Union and countries like India that are becoming increasingly cautious about China.
There are now “excellent signals” from Germany and the United Kingdom “that they will try to exclude Huawei, or at least remove it from the core.” [5G] Network, “said Nietsche. Germany is examining Huawei’s data flows, for example, to determine whether the company is violating European laws.
In the meantime, India has considered whether Huawei devices should be included in the country’s 5G network, said Chaitanya Giri, analyst at the Indian foreign policy think tank Gateway House. Huawei received the go-ahead for participating in 5G testing late last year.
Tensions between New Delhi and Beijing have increased dramatically in the past few weeks after at least 20 Indian soldiers have been killed in border fighting with Chinese troops stationed in the Himalayas. According to Giri, China has also been selected to blame for the coronavirus pandemic in India.
According to Giri, Huawei could now get into escalating tensions. Public opinion has now “consolidated that we will not be using Chinese equipment,” he said.
What Giri Europe and India have in common, according to Giri, is growing discomfort after years of significant investment from China.
“Great democracies are singing in a choir,” he said. “You understand what it’s about.”