China threatens EU with retaliation if it bans Huawei gear

China said it would retaliate against the European Union if it proceeds with a proposal to ban Huawei Technologies Co’s equipment across the continent, escalating tensions in the long-running clash over national security and the communications company’s products.

China’s mission to the EU has asked that the commission erase language that would declare Chinese equipment a cybersecurity concern or label companies from the country as “high risk” suppliers in a proposal from Commission Executive vice-president Henna Virkkunen. 

Ms Virkkunen is looking for ways to compel countries in the bloc to phase out Huawei’s and compatriot ZTE Corp’s equipment from their telecommunications infrastructure and in January proposed mandatory measures meant to secure networks in the Cybersecurity Act. 

“If the EU persists in adopting the proposal, China will have to respond in kind by carrying out corresponding countermeasures against the EU and EU businesses,” the Chinese mission said in a statement at a meeting in Brussels on April 29.

If the EU uses the Act to require European businesses to phase out Chinese equipment, China can “launch relevant investigations into the EU or EU businesses and take reciprocal measures”. 

A number of countries in Europe, as well as Britain, have taken steps to ban Huawei gear from the most sensitive parts of their telecommunications networks, saying the company’s ties to China are a security risk.

In 2020, the commission set out voluntary guidelines in its 5G toolbox that advised countries to curb the use of “high-risk vendors”.  

Critics have complained that the bans hurt telecoms by restricting the supply of critical network components and force them to turn to more expensive or less sophisticated suppliers.

Besides Huawei, the dominant telecom equipment suppliers are in Europe – Nokia Oyj and Ericsson. BLOOMBERG