Meeting with 4(1)(b)
Brussels, 23 July 2020
• We aim at
building more resilient supply chains in Europe, stockpiling where
needed, strengthening our industrial base and diversifying our supply sources.
• Additional costs need to be balanced against the security of supply and possibly wider
considerations of open strategic autonomy, public security and health. At the same
time, the
EU will remain an open, free trade economy.
• 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, which was welcomed by your company, makes it possible to
restrict technology vendors considered to be of high-risk in order to preserve the
long-term integrity of the 5G infrastructure;
− the
foreign direct investment screening mechanism will address cases where
the acquisition of European companies by foreign investors could pose a risk to
the EU’s security and public order.
• 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. The EU remains indeed a competitive market economy, which protects
high social and environmental standards.
Huawei in the EU
•
Europe is open for business. Everyone who complies with our rules can access the
European market.
•
We welcome Huawei’s contribution to the European economy. I understand from
the Oxford Economics study that Huawei employs 13 300 persons in Europe
[including
UK, Iceland, Switzerland and Norway] with a
direct contribution to Europe’s GDP of
EUR 2.8 billion. Your presence on the European market is very significant.
• We also appreciate Huawei's commitment to Europe and its wish to be a
good
‘corporate citizen’ in the EU market.
Huawei’s contribution to the digital and green transition
• 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.
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.
• The
report on the implementation of the 5G toolbox measures [to be published
prior to the meeting on 22 July] shows that good progress has been made.
• In parallel, the Commission is taking action in various areas to support the toolbox
implementation, 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.
Short medium-term 5G deployment will greatly support the economic recovery, but
moving into 6G will ensure a sustainable long-term growth.
Topics for discussion
2/7
Meeting with 4(1)(b)
Brussels, 23 July 2020
• We are setting up a
new partnership on smart networks and services fostering 5G
deployment and building technology capacities for 6G. The conditions for participation
will take into account the toolbox and security requirements as appropriate without
excluding individual players.
Green Deal and circular economy
• The Commission sees the
European Green Deal as one of the major part of the EU
growth strategy and a path to a
green and lasting recovery from the current health
pandemic and the resulting economic recession.
• 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.
• The
circular economy action plan [adopted on 11 March 2020] provides initiatives
along the entire life cycle of products.
• We are now working on the
circular electronics initiative to ensure that electronics
are designed for durability, maintenance, repair, dismantling, reusing and recycling.
This includes software repairs and updates.
•
We acknowledge Huawei’s sustainability efforts:
− How do you see Huawei contributing to the Green Deal initiatives?
− What are your perspectives particularly on the reduction of CO2 emissions and the
recycling of older products?
Defensives
Because of EU foreign direct investment screening, the Chinese investments in the
EU are dropping (by 80%)
• The drop of Chinese investment into the EU cannot be attributed to the Screening
Regulation because
− it will become applicable only as of October 2020;
− screening on security grounds is not considered a restrictive, protectionist measure.
It is not part of the OECD foreign direct investment restrictiveness index;
− Chinese overseas investments have gone down globally, not just in Europe.
• We also understand that tighter capital outflows restrictions are being implemented in
China.
EU measures are ‘targeting’ China and its State owned enterprises
• We do not develop discriminatory policies targeting any individual country. The EU's
goal is to seek fair conditions of competition and to preserve its own competitiveness
by addressing the distortive effects of foreign State ownership and State financing in
the EU’s internal market.
• The white paper on foreign subsidies
[adopted on 17 June] proposes such a country-
neutral approach.
Huawei’s proposal for a dispute resolution mechanism on information security
issues
• We would need to better understand the objectives, the instruments and the format.
• As for the investment negotiations and beyond, market specific security considerations
are not to be ‘negotiated’.
Topics for discussion
3/7