5G Technology and International Trade

Guest post by Winson Wang, Director of the Legal Department, Western Europe Region, Huawei Technologies

Many countries had to close their borders due to COVID-19. People living abroad are impacted as they are unable to travel to their home countries and to visit their – possibly separated – loved ones. At the same time, we are amazed how far we have come in connecting the world and enabling people to meet in a virtual space on video calls. This reminds us that every crisis – how dark and tragic it may be – also breeds the potential for new learnings and the opportunity for humankind to come up with new and ingenious ways to overcome unexpected challenges.

And yet the disruptions of supply routes around the world also highlight another key component of how the world has been able to bring technology to every corner of the globe – it reminds us of the value of international trade. Despite the initial reflex of national retreat in the face of this unprecedented pandemic, the world still is and will remain a global market place, where for instance both the European Union and China benefit significantly from mutual trade.

This is especially true for the telecommunication industry. Supply chains are global and produce substantial benefits for consumers in all continents. With the next wave of technological progress within reach, countries around the globe are ramping up their investment in 5G technology. All big 5G vendors are global companies leveraging the technologies, the production and research capacities from – and are subject to the laws of – the EU, China and the US respectively. Ultimately, all leading 5G manufacturers depend on international supply chains.

For Huawei as a leader in 5G technology, it is our mission to expand the benefits of technology to everyone, everywhere. Huawei has been a trusted partner of European operators for more than 20 years. Our company has set an example in terms of technological transparency by establishing numerous cybersecurity centres in the EU, inter alia to allow governments the verification of our source codes. Thus, we unequivocally welcome the increased focus on 5G security by the European Union and member states.

At the same time, we believe it is paramount to apply security measures in a way which is fact-based, proportionate and non-discriminatory. In doing so, it will be important to avoid creating market barriers based on a suppliers country of origin as this could be in conflict with the rules of the World Trade Organization. Equipment vendors – wherever their headquarter may be located – ought to comply with the same rigid standards and be subjected to the same appropriate security vetting in line with the principles of the EU regulatory framework.

The EU common market is an impressive example of how cooperation on trade contributes to the benefit of businesses and consumers in all member states. More recently, EU leaders have emphasized the concept of EU sovereignty as a necessary counterpart to the openness of the EU system. It can only be the EU and its member states, who define the rules of their open economies. Notwithstanding, Huawei believes that the extraterritorial effects of the US export-control regime exceed or even outright contradict applicable EU regulations and thereby interfere with the notion of European open market principles.

This global crisis has demonstrated the important role of communication technology in all of our lives – and expectations are high as to how 5G and 5G-based applications can improve our lives. And yet, a quick roll-out of 5G technology requires an effective and fact-based system of security requirements and controls – it also requires the cooperation of the best and the brightest – wherever they come from.