EU gives Huawei millions in R&D funding

Huawei has received millions of euros from the EU to fund some of its R&D activities, despite the EU itself heaping pressure on telcos to avoid using the vendor’s kit.

The Financial Timesreported (paywall) on Wednesday that Huawei is participating in no fewer than 11 projects under the EU’s Horizon Europe research and innovation programme, which runs to 2027 and has a budget of €95.5 billion. One of its pillars, called ‘Global challenges and European industrial competitiveness’, covers everything from healthcare, agriculture and animal welfare, to high-performance computing, transport, and smart networks and services, among others.

Huawei has hoovered up €3.89 million, which isn’t much a of dent, but as the FT notes, this is more about a Chinese vendor playing a role in the development of next-generation network technologies that could one day underpin European comms infrastructure.

That wouldn’t be a problem if the EU was fine with Huawei technology being present in European telco networks. But it is very much not fine with that.

Thierry Breton, EU commissioner in charge of the internal market, emphasised at an event last week the importance for telcos to take seriously the EU’s 5G toolbox framework.

Developed in 2020, it stopped short of banning Huawei from networks, but advised operators not to buy kit from what the EU termed ‘high-risk’ vendors that it warned may jeopardise the security of their networks. It essentially meant the EU could be anti-Chinese tech without resorting to bombast.

Breton last week praised those telcos that have interpreted the advice as more of a tacit instruction, but noted that others “are late”, and urged those late-runners to get a move on.

At the same time, a separate FT report alleged that the EU is close to issuing an outright ban on member states using companies that represent a risk to the security of 5G networks. Citing Breton, the report claims just a third of EU countries have taken action to prevent Huawei 5G gear from ending up in comms networks.

The EU is also quite prepared to use its influence to pressure countries beyond its borders into not using Chinese network equipment.

The EU’s envoy to Malaysia, in tandem with their US counterpart, last month warned Malaysia against taking any action that might open the door to Huawei. The intervention was prompted by the government’s decision to review the tender process for its state-backed shared 5G network. Since then, Malaysia has confirmed plans to create a second national wholesale network, and doesn’t seem particularly bothered by telcos collaborating with Chinese vendors, undoubtedly to the US and the EU’s chagrin.

This staunch anti-China stance therefore makes Huawei’s participation in Horizon Europe all the more puzzling.

If Huawei really does represent a threat to the future security of Europe’s 5G infrastructure, then there is no justification for paying it millions of euros to help design the future of this infrastructure.

Get the latest news straight to your inbox. Register for the Telecoms.com newsletter here.