Calls for Huawei boycott get mixed response in Europe

Logo of Huawei is seen in front of the local offices of Huawei in Warsaw, Poland January 11, 2019. (Reuters)
Updated 13 January 2019
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Calls for Huawei boycott get mixed response in Europe

  • Huawei has faced increasing scrutiny over its alleged links to Chinese intelligence services
  • Huawei had already seen the arrest of the daughter of the firm’s founder in Canada and US efforts to blacklist the company internationally over security concerns

PARIS: Europe is giving US-led calls for a boycott of Huawei 5G telecoms equipment a mixed reception, with some governments untroubled by spy suspicions against the Chinese giant, but others backing a ban.
In the latest setback for the company, Huawei said Saturday it had fired an employee in Poland who was arrested there a day earlier on suspicion of spying for China. “His alleged actions have no relation to the company,” Huawei said in a statement to AFP.
Huawei had already seen the arrest of the daughter of the firm’s founder in Canada and US efforts to blacklist the company internationally over security concerns.
Several Asian and Pacific countries have followed Washington’s call for a Huawei ban, but the picture in Europe is more nuanced, not least because Huawei’s 5G capabilities are so attractive. They are well ahead of Sweden’s Ericsson, Finland’s Nokia and South Korea’s Samsung, analysts say.
Fifth generation (5G) technology represents a quantum leap in wireless communication speed, and will be key to developing the Internet of things, including self-driving cars. That is why Europe wants to deploy it as quickly as possible.
“Operators have looked at alternatives but have realized that Huawei is currently more innovative and probably better for 5G,” said Dexter Thillien, an analyst at Fitch Solutions.
Huawei has faced increasing scrutiny over its alleged links to Chinese intelligence services, prompting not just the US but also Australia and Japan to block it from building their 5G Internet networks.
But in Europe, Portugal’s main operator MEO signed a deal with Huawei in December during a visit by Chinese President Xi Jinping, praising the Chinese company’s “know how, competence, talent and capacity to develop technology and invest in our country.”
By contrast Norway, whose current networks are for the most part made up of Huawei equipment, is thinking of ways to reduce its “vulnerability,” according to the Nordic country’s transport and communications minister quoted in the local press — especially toward countries with whom Oslo “has no security cooperation,” an implicit reference to China.
Britain’s Defense Secretary Gavin Williamson meanwhile said he had “grave, very deep concerns about Huawei providing the 5G network in Britain.”
The Czech cybersecurity agency said that Chinese laws “force private companies with their headquarters in China to cooperate with intelligence services,” which could make them “a threat” if involved with a country’s key technology.
Germany is under pressure from Washington to follow suit, news magazine Der Spiegel reported. But the country’s IT watchdog says it had seen no evidence Huawei could use its equipment to spy for Beijing.
Meanwhile, telecom operators across Europe, under heavy pressure to roll out 5G quickly, seem to be playing down security fears because using Huawei makes business sense to them.
“Huawei is much more expensive today than its competitors but it’s also much better,” said a spokesperson at a European operator who asked not to be named because of the sensitive nature of the matter. The quality of Huawei’s equipment “is really ahead” of its European competitors, he added.
Furthermore, “everywhere in Europe, operators are the target of huge controls in that area and Huawei’s equipment has never been found to be at fault.”
To add to the confusion, large operators could reject Huawei equipment in some of their markets, but not in others.
Historic French operator Orange has said that it won’t use Huawei networks in France, but could very well do so in Spain and Poland.
Germany’s Deutsche Telekom announced a deal with Huawei for its future 5G network in Poland, but hasn’t said what it will do in Germany itself.
Meanwhile, Huawei is making great efforts to prove its good faith. It has opened test labs for its equipment in Germany and the UK in cooperation with the governments there, and is to launch another in Brussels by the end of the first quarter.
The stakes are high: Europe is a crucial market for Huawei, whose combined sales for Europe, the Middle East and Africa accounted for 27 percent of overall group sales in 2017, mostly thanks to spending by European operators.
Huawei rotating chairman Guo Ping in late December complained that his company was being subjected to “incredibly unfair treatment.”
“Huawei has never and will never present a security threat,” Guo wrote in a New Year’s message to staff.
Some analysts doubt that even a widespread ban on Chinese telecoms networks equipment could possibly guarantee watertight security.
“In Paris alone, there are more than a million Huawei smartphones. If you want to listen in, that’s how many opportunities you have,” said a sector specialist.


Squabbles erupt as G7 leaders open summit in French resort

Updated 25 August 2019
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Squabbles erupt as G7 leaders open summit in French resort

  • Disputes on trade, climate may eclipse Macron’s agenda
  • EU’s Tusk warns of lack of global unity, spars with Johnson

BIARRITZ, France: Squabbles erupted among G7 nations on Saturday as their leaders gathered for an annual summit, exposing sharp differences on global trade tensions, Britain’s exit from the EU and how to respond to the fires raging in the Amazon rainforest.
French President Emmanuel Macron, the summit host, planned the three-day meeting in the Atlantic seaside resort of Biarritz as a chance to unite a group of wealthy countries that has struggled in recent years to speak with one voice.
Macron set an agenda for the group — France, Britain, Canada, Germany, Italy, Japan and the United States — that included the defense of democracy, gender equality, education and the environment. He invited Asian, African and Latin American leaders to join them for a global push on these issues.
However, in a bleak assessment of relations between once-close allies, European Council President Donald Tusk said it was getting “increasingly” hard to find common ground.
“This is another G7 summit which will be a difficult test of unity and solidarity of the free world and its leaders,” he told reporters ahead of the meeting. “This may be the last moment to restore our political community.”
US President Donald Trump had brought last year’s G7 summit to an acrimonious end, walking out early from the gathering in Canada and rejecting the final communique.
Trump arrived in France a day after responding to a new round of Chinese tariffs by announcing that Washington would impose an additional 5% duty on some $550 billion worth of Chinese imports, the latest escalation of the tit-for-tat trade war by the world’s two largest economies.
“So far so good,” Trump told reporters as he sat on a seafront terrace with Macron, saying the two leaders had a special relationship. “We’ll accomplish a lot this weekend.”
Macron listed foreign policy issues the two would address, including Libya, Syria and North Korea, and said they shared the objective of preventing Iran from obtaining nuclear weapons.
Trump later wrote on Twitter that lunch with Macron was the best meeting the pair has yet had, and that a meeting with world leaders on Saturday evening also “went very well.”
However, the initial smiles could not disguise the opposing approaches of Trump and Macron to many problems, including the knotty questions of protectionism and tax.
Before his arrival, Trump repeated a threat to tax French wines in retaliation for a new French levy on digital services, which he says unfairly targets US companies.
Two US officials said the Trump delegation was also irked that Macron had skewed the focus of the G7 meeting to “niche issues” at the expense of the global economy, which many leaders worry is slowing sharply and at risk of slipping into recession.
French riot police used water cannons and tear gas on Saturday to disperse anti-capitalism protesters in Bayonne, near Biarritz. A police helicopter circled as protesters taunted lines of police.
The leaders themselves were gathering behind tight security in a waterfront conference venue, the surrounding streets barricaded by police.

Spat over ‘Mr. No Deal’ Brexit
Macron opened the summit with a dinner at the base of a clifftop lighthouse overlooking Biarritz, where a menu of piperade, a Basque vegetable specialty, tuna and French cheeses awaited the leaders.
Adding to the unpredictable dynamic between the G7 leaders are the new realities facing Brexit-bound Britain: dwindling influence in Europe and growing dependency on the United States.
New Prime Minister Boris Johnson will want to strike a balance between not alienating Britain’s European allies and not irritating Trump and possibly jeopardizing future trade ties. Johnson and Trump will hold bilateral talks on Sunday morning.
Johnson and Tusk sparred before the summit over who would be to blame if Britain leaves the EU on Oct. 31 without a withdrawal agreement.
Tusk told reporters he was open to ideas from Johnson on how to avoid a no-deal Brexit when the two men meet.
“I still hope that PM Johnson will not like to go down in history as Mr.No Deal,” said Tusk, who as council president leads the political direction of the 28-nation European Union.
Johnson, who has said since he took office last month that he will take Britain out of the bloc on Oct. 31 regardless of whether a deal can be reached, later retorted that it would be Tusk himself who would carry the mantle if Britain could not secure a new withdrawal agreement.
“I would say to our friends in the EU if they don’t want a no-deal Brexit then we’ve got to get rid of the backstop from the treaty,” Johnson told reporters, referring to the Irish border protocol that would keep the border between Northern Ireland and EU member Ireland open after Brexit.
“If Donald Tusk doesn’t want to go down as Mr.No Deal then I hope that point will be borne in mind by him, too,” Johnson said on his flight to France.
Johnson is trying to persuade EU leaders to drop the backstop from a withdrawal agreement that was negotiated by his predecessor but rejected three times by the British Parliament as the United Kingdom struggles to fulfill a 2016 referendum vote to leave the bloc.

‘Not the way to proceed’
Despite the Brexit tensions, diplomats played down the likelihood of Trump and Johnson joining hands against the rest, citing Britain’s foreign policy alignment with Europe on issues from Iran and trade to climate change.
“There won’t be a G5+2,” one senior G7 diplomat said.
Indeed, Johnson said he would tell Trump to pull back from a trade war that is already destabilising economic growth around the world.
“This is not the way to proceed,” he said. “Apart from everything else, those who support the tariffs are at risk of incurring the blame for the downturn in the global economy, irrespective of whether or not that is true.”
Anti-summit protests have become common, and on Saturday thousands of anti-globalization activists, Basque separatists and “yellow vest” protesters marched peacefully across France’s border with Spain to demand action from the leaders.
“It’s more money for the rich and nothing for the poor,” said Alain Missana, an electrician wearing a yellow vest — symbol of anti-government protests that have rattled France for months.
EU leaders piled pressure on Friday on Brazilian President Jair Bolsonaro over fires raging in the Amazon rainforest.
Even so, Britain and Germany were at odds with Macron’s decision to pressure Brazil by blocking a trade deal between the EU and the Mercosur group of Brazil, Argentina, Uruguay and Paraguay.
A spokesman for German Chancellor Angela Merkel said not concluding the trade deal was “not the appropriate answer to what is happening in Brazil now.”
The UK’s Johnson appeared to disagree with Macron on how to respond. “There are all sorts of people who will take any excuse at all to interfere with trade and to frustrate trade deals and I don’t want to see that,” he said.