EU ban on Chinese technology in 5G revolution would hit trade, investment and cooperation, analysts say
- Beijing hints at retaliation if Europe takes punitive action against Huawei
- Analyst says development of 5G has become geopolitical football
Trade, investment and scientific cooperation between Europe and China are at risk of taking a “big step back” as the European Union considers banning Chinese telecom giant Huawei, analysts said.
Beijing has hinted at retaliation should the European Union go ahead with the ban. The 28-member bloc is planning ways to ban Chinese firms from work to develop its 5G networks, and that might spell trouble for joint efforts to test 5G in China and Europe.
Last week, EU officials said they were in the early stages of making plans to strengthen procurement rules, or change the legal definition of critical infrastructure.
Such plans, if enacted, would effectively exclude Chinese telecom providers from development of European high-speed information networks.
“The global economic implications of comprehensive bans on major Chinese tech firms almost go without saying – they would have enormous effects,” said Cui Hongjian, a senior fellow with the China Institute of International Studies. “It would definitely affect trade relations as well.”
The EU is China’s biggest trading partner, averaging more than €1 billion (US$1.14 billion) per day, while China is the EU’s second-largest after the United States.