The EU steps up the security of 5G networks: plans and reactions

The NIS Cooperation Group, the body responsible for the security of networks and information systems of the European Union, has released, with the support of Member States and ENISA, the second report regarding the implementation of the Toolbox on the security of 5G networks on 15 June 2023. The information gathered revealed that ten Member States have already adopted adequate restrictions, while three others are working on the creation of national legislation. This was possible thanks to the recommendations promulgated in 2020, which aimed to identify a series of measures capable of mitigating the main risks associated with 5G networks and promoting a coordinated approach among Member States.

Actions against Huawei and ZTE and the classification of "High-risk operators"

Among the measures adopted, those against Huawei and ZTE stand out. The European Commissioner for the Internal Market, Thierry Breton, has defined these two Chinese telecommunications giants as "high-risk" operators, presenting a serious danger to the collective security of the Union. This vision was further strengthened by European Commission Vice-President Margrethe Vestager. On June 15, the Commission released the "Implementation of the 5G cybersecurity Toolbox" communication, in which Huawei and ZTE are classified as "high-risk operators", based on assessments conducted by European and third countries, as well as legislative measures taken to address the risks arising from such suppliers.

UK response and China's position

Even before the European Commission's announcement, the UK had already proposed tightening public procurement laws to protect strategic sectors. The UK government has proposed the creation of a National Security Procurement Unit, with the task of screening suppliers and being able to exclude specific entities from certain contracts. Following the Commission's communication, a spokesman for Beijing's Ministry of Foreign Affairs expressed opposition to the proposal, arguing that the European Commission has no legal basis or concrete evidence to limit the activities of Chinese companies.

Economic implications and the chinese response

While actions against Chinese technology companies have been justified as necessary measures to protect strategic sectors, the industry estimates that bans on Huawei telecommunications equipment could cost the United States and its allies more than $100 billion. This could lead to a delay in the introduction of 5G services and higher prices for Huawei's competitors. From a geopolitical point of view, the sanctions against Beijing companies could trigger reactions from the People's Republic of China. For example, in May 2023, the Chinese government informed domestic operators to stop purchasing products from US chipmaker Micron Technology, arguing that such products pose a serious risk to network security.