Ref. Ares(2020)7020386 - 23/11/2020
Meeting with
Video-call, 23 July 2020
Steering brief
Scene setter
You are meeting
at Huawei
.
Over the past ten years, Huawei has become the
number one supplier of mobile
communications equipment in the world. In November 2019, the consultancy Oxford
Economics published a
study commissioned by Huawei, showcasing Huawei’s
contribution to Europe’s economy in terms of growth and jobs.
National security concerns - 5G cybersecurity risks
A number of countries, including Germany, Denmark, Czechia, the United States,
Australia and India have raised concerns about the national security risks of contracting
Huawei and blocked – or set strict conditions on – Huawei’s participation in public tenders.
The United States restricted Huawei from accessing national semiconductor software or
technology.
To address 5G cybersecurity risks, the EU has put in place a coordinated, risk-based
approach, including a toolbox of mitigating measures to address cybersecurity risks at
national and Union level. Huawei fears that the EU’s toolbox will not allow it to participate
in critical network infrastructure.
EU-China relations
Huawei’s presence on the European market should be seen in the wider context of
increasingly
tense EU-China commercial relations. Many European companies have
accused China of discriminatory practices on its domestic market. In the
telecommunication sector, China's ‘Made in China 2025’ policy stipulates that 80% of the
telecom equipment should be manufactured by Chinese vendors, leaving only 20% of the
market to foreign suppliers. Overall, Huawei projects itself as a champion of multilateral
cooperation.
Huawei and sustainability
Huawei, in its 2019 sustainability report, claims to have increased the energy efficiency of
their products by up to 22%, cutting CO2 emissions intensity by 32.7% compared with the
base year, and recycled 86% of returned products. Huawei supports the European Green
Deal.
Objectives of the meeting
• What we want:
− Reinstate that the initiatives undertaken at EU level to address 5G cybersecurity
aim at keeping the Single Market open for business while ensuring the EU core
values and interests are respected.
− Seek Huawei’s assessment on the situation on the Chinese market (for 5G but also
other technologies), in particular concerning the treatment of EU companies.
• What the interlocutor wants:
− Highlight the contribution that Huawei makes to the European economy in terms of
growth, jobs, and the twin (digital and green) transition.
− Reassure the Commission about the ongoing national security concerns raised
about Huawei, and discuss the EU’s security toolbox for 5G networks.
Steering brief
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Meeting with
Video-call, 23 July 2020
Key messages
On EU-China relations
•
European companies have expressed strong concerns about the Chinese market.
In particular, the share of EU network equipment vendors has decreased dramatically.
• I would be interested in
your views on the current state of play on the Chinese
market regarding access of European companies.
On global value chains
• The Commission is working to
assess the vulnerabilities of the EU industrial
ecosystem and value chains, with the aim of building more resilient supply chains.
• The Commission has been developing
new tools and instruments to address
challenges stemming from a fast-evolving technological and political environment. For
example the
5G toolbox or the
foreign direct investment screening mechanism.
• These tools and instruments allow keeping the
Single Market open while ensuring our
core values and interests are respected in a challenging global economic
environment.
On Huawei in the EU and its contribution to twin transition
•
We welcome Huawei’s contribution to the European economy. Your presence on
the European market is very significant.
• The
telecoms sector, and in particular 5G and 6G connectivity, are
indispensable for
the success of our digital transition, and are also crucial
enablers of the green
transition.
On 5G and 6G
• On
5G cybersecurity, EU Member States have committed to jointly move forward
based on an objective assessment of risks and proportionate mitigating measures.
• In parallel, the
Commission is taking action in various areas, including
standardisation and certification, the screening of foreign direct investment or the
application of security conditions for EU-funded programmes.
•
These measures will apply to everybody, without targeting any actor or country in
particular. EU Member States have the right to decide whether to exclude companies
from their markets for national security reasons.
• We have to be forward-looking,
positioning ourselves for the upcoming 6G race.
On the Green Deal and circular economy
• The
common European Green Deal data space will use data to support actions on
climate change, circular economy, zero-pollution, biodiversity deforestation and
compliance assurance.
• We are now working on the
circular electronics initiative to ensure that electronics
are designed for durability, maintenance, repair, dismantling, reusing and recycling.
•
We acknowledge Huawei’s sustainability efforts. How do you see Huawei
contributing to the Green Deal initiatives?
On digital finance
• The Commission is planning to adopt a
new strategy for digital finance in the coming
months. We want to ensure the European financial sector drives the digital revolution in
finance and that consumers benefit from it.
Contacts – briefing coordination:
Steering brief
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