Chinese telecommunications firm Huawei voiced criticism of the European Union (EU) on Friday after the bloc deemed the company to pose a “risk” to security. In a statement, Huawei said the adoption of restrictions or exclusions based on discriminatory judgments presents significant economic and social risks, as they could hinder innovation and distort the European market.
The European Commission, the EU’s executive body, identified Huawei and another Chinese company, ZTE, as security risks to the bloc. It announced that it would veto the use of equipment from these two companies in 5G phone networks. Huawei noted that publicly labeling a company as a high-risk supplier without a legal basis goes against the principles of free trade.
In a document issued Thursday, the European Commission highlighted that, based on a wide range of available information, Huawei and ZTE pose materially higher risks than other 5G suppliers. Accordingly, the Commission will take measures to prevent exposure of its corporate communications to mobile networks using Huawei and ZTE as suppliers.
Huawei has sought to diversify its revenue streams after US-imposed sanctions drastically impacted its telecommunications equipment and smartphone businesses. Its 5G system has been blocked in key markets such as the US, UK, and Japan due to security concerns.
The company denies allegations that the use of its networks involves risks of espionage by China.