Daily Management Review

Tough Measures To Vet 5G Suppliers Backed By EU, Huawei Likely To Be Impacted


Tough Measures To Vet 5G Suppliers Backed By EU, Huawei Likely To Be Impacted
Tough preconditions for the selection of suppliers for construction and running of 5G mobile networks has been adopted by the countries of the European Union on Friday. The conditions included strict vetting of the domestic legal framework that will be used for subjecting examination of the suppliers. According to market experts, this decision of the EU countries will potentially be bad news for the Chinese tech giant and telecom equipment maker Huawei, the largest telecom equipment maker of the world.
A spokeswoman for Finland, which presently holds the rotating EU presidency, said in a tweet that this approach was agreed to by the ambassadors of the EU countries at a meeting in Brussels.  
News reports based on a draft document that was prepared before the meeting shows that the non-technical elements such as the legal and policy framework which could be subjected for suppliers in third countries would also be considered by the EU. No names of specific countries or companies were mentioned in the document, reports said.
The document also suggested that EU governments should aim at not depending on one supplier but instead should diversify their supplier pool. It is expected that the green light to the approach will be given by EU ministers at a meeting next month.
The EU has been urged by the United States to bank ban Huawei from participating in the construction of 5G networks over concerns that the equipment supplied by Huawei could have back doors that could be exploited by Chinese agencies for spying on Western countries. The US fears are related to a Chinese law imposable on its domestic companies that mandates that such companies comply with cooperation requests from the Chinese government on security matters and critics have said that the law can be used for using the companies for spying.
All the US charges have been repeatedly denied by the Shenzen-based company. The main rivals of Huawei are Finland's Nokia and Sweden's Ericsson.
A warning of an increase in incidents and depth of cyber attacks conducted by state-backed entities was issued last month by the EU. However no company or country was named as potential threats in that warning.
The EU believes that fast development of 5G mobile networks is crucial for economic growth of the region.
And now, to address cyber security risks at national and bloc-wide level, the EU is now seeking to make use of the so-called toolbox of measures which are expected to be implemented by the end of the current year. A map of specific threats related to 5G networks is also being finalized by the European Agency for Cybersecurity.