EU announces strict 5G rules, but no Huawei ban

Huawei is one of the few suppliers capable of building 5G networks, along with European telecom companies Nokia and Ericsson. (AFP)
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Updated 29 January 2020
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EU announces strict 5G rules, but no Huawei ban

  • Any bans on Huawei will now ultimately be up to individual member states
  • Huawei is widely viewed as providing the most advanced alternative for super-fast data transfers

BRUSSELS: EU countries could ban telecoms operators deemed a security risk from critical parts of 5G infrastructure under bloc guidelines issued Wednesday, amid US pressure to shut out Chinese giant Huawei.
The plan, which closely mirrors rules set out by Britain allowing a limited role for Huawei, stops short of barring the company from building the next-generation communications network that provides near-instantaneous data transfers.
It leaves member states with the responsibility to ensure the safe rollout of 5G and warns them to screen operators carefully, saying security of the network will be critically important for the entire EU.
The so-called “toolbox” outlined by the European Commission avoids naming Huawei and does not call for an outright ban on any supplier.
But it urges countries to “assess the risk profile of suppliers” and “apply relevant restrictions for suppliers considered to be high risk” accordingly, including shutting them out of “key assets defined as critical and sensitive.”
It also recommends EU states avoid “major dependency on a single supplier” and “dependency on suppliers considered to be high risk.”
The guidelines are the fruit of months of agonizing within the EU, which has struggled to find a middle way to balance Huawei’s huge dominance in the 5G sector with security concerns pressed by Washington.
Any bans on Huawei will now ultimately be up to individual member states, but the commission’s middle road recommendations give cover to European capitals to resist pleas from Washington.
London’s announcement on Tuesday of a limited role for Huawei infuriated Washington, which says it cannot be trusted with such important infrastructure because it is too close to the Beijing government.
The US has banned Huawei from its own 5G roll-out because of security concerns and threatened to limit intelligence-sharing with London in the event of the firm winning a major role in Britain.
Britain, like the EU, plans to exclude risky operators from “sensitive” locations such as nuclear sites and military bases, but a US official insisted there was “no safe option for untrusted vendors to control any part of a 5G network.”
Huawei is widely viewed as providing the most advanced alternative for super-fast data transfers behind technologies such as self-driving cars and remotely operated factory robots.
Along with European telecom companies Nokia and Ericsson, it is one of the few suppliers capable of building 5G networks.
The commission warned that 5G will offer “more potential entry points” for cyberattacks — a growing threat as more and more critical services such as hospitals and power grids depend on data networks.
“5G will be a ground-breaking technology but it cannot come at the expense of the security of our internal market,” commission vice president Margaritis Schinas said in a statement.
“The toolbox is an important step in what must be a continuous effort in the EU’s collective work to better protect our critical infrastructures.”


PIF and RSAH to build integrated aluminum complex in Yanbu 

Updated 10 sec ago
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PIF and RSAH to build integrated aluminum complex in Yanbu 

RIYADH: An advanced integrated aluminum complex is set to be developed in Yanbu after Saudi Arabia’s Public Investment Fund agreed initial terms with Red Sea Aluminium Holdings. 

The project, announced at the Future Minerals Forum in Riyadh, will be operated by Red Sea Aluminium Industrial and will introduce advanced smelting and continuous-casting technologies.

It is expected to include one of the Middle East’s largest continuous-casting facilities for high-value downstream aluminum products, according to a press release. 

The collaboration marks a significant step in PIF’s strategy to build globally competitive industrial ecosystems, diversify Saudi Arabia’s economy, and strengthen its manufacturing capabilities.  

The project will also support the localization of supply chains and position the Kingdom as a regional hub for high-value aluminum products. 

Muhammad Al-Dawood, head of industrials and mining sector at the sovereign wealth fund, said: “PIF continues delivering on its mandate by further developing globally competitive industrial ecosystems that drive Saudi Arabia’s economic transformation and diversification.” 

He added: “RSAI would secure the supply of downstream aluminum products to meet global and local demand.” 

RSAH, a joint venture between Innovation Global Industries, Innovation New Materials, and Shandong Innovation Group, will leverage its shareholders’ expertise as some of the world’s leading producers of downstream aluminum. 

“RSAI aims to become a global downstream aluminum leader, embedded within Saudi Arabia’s industrial and energy ecosystem and designed from day one to meet the needs of international customers,” said Tom Northover, executive board director of RSAH. 

He added: “We are pleased to partner with PIF and leverage its extensive investment knowledge and scale. Our investment in Yanbu reflects the fundamental strength of Saudi Arabia as a global center for advanced industry.” 

PIF’s investment in the aluminum complex complements its broader portfolio in strategic sectors such as automotive, power and utilities, electronics, and construction. 

The project is also expected to promote workforce development through technical training and skills-building initiatives aligned with global best practices. 

The initial terms remain subject to final agreements, including the completion of transaction documents, regulatory approvals, and fulfillment of condition precedents.