Portugal’s new centre-right government will maintain the ban on Chinese companies supplying equipment for the nation’s 5G network. This policy, introduced in May 2023, restricts companies like Huawei Technologies and ZTE Corporation from providing 5G and 4G network components. The ban was recommended by the CSSC cybersecurity board, a consultative body to the Portuguese prime minister, due to security concerns.
Portugal’s Infrastructure Minister Miguel Pinto Luz confirmed that the government’s stance aligns with European Union (EU) recommendations for member states to assess the risks associated with 5G networks and consider restricting high-risk vendors. Portugal’s major telecom operators, Altice and Vodafone, have already committed to not using Huawei’s technology in their 5G core networks. However, they will still need to remove Huawei equipment from all parts of their infrastructure.
A study by EY, commissioned by Huawei, estimated that excluding Chinese technology could cost Portugal’s economy over €1bn, including €339m for replacing the equipment. Despite these figures, Minister Pinto Luz stated that operators would have an “ample timeframe” to replace the equipment, according to Reuters.
Huawei global bans
Globally, several countries have imposed similar bans or restrictions on Chinese 5G equipment due to concerns over national security, data privacy, and potential espionage.
The 2017 National Intelligence Law and the 2014 Counter-Espionage Law in China, which require Chinese companies to assist in intelligence-gathering activities if requested by the government, have been key reasons for these concerns. This has raised fears that companies like Huawei and ZTE could be forced to provide access to sensitive data or introduce backdoors in their equipment that could be exploited for surveillance.
In Europe, 11 European Union member states have imposed restrictions on telecom suppliers like Huawei and ZTE due to these security concerns. The European Union’s 5G Cybersecurity Toolbox, adopted in 2020, advises member states to apply restrictions to high-risk suppliers to protect against potential cyber threats.
Sweden, for example, has banned Huawei equipment in its networks and mandated the removal of existing equipment by specific deadlines. Germany has also decided to phase out critical components from Chinese manufacturers from its 5G mobile network by 2026.
The UK, on its part, announced in July 2020 that it would ban the use of Huawei Technologies equipment in its 5G networks, citing national security concerns. All UK telecom operators were mandated to stop purchasing new Huawei 5G equipment by the end of 2020, and existing Huawei gear must be removed from their 5G networks by the end of 2027. This decision followed advice from the National Cyber Security Centre, which raised concerns about the security risks posed by Huawei due to US sanctions affecting Huawei’s supply chain and its reliance on American technology.
Last year, the European Commission supported member states’ decisions to restrict or exclude Huawei and ZTE from 5G networks, considering them higher security risks than other suppliers.
European nervousness over China telecoms giant
Following the 5G cybersecurity toolbox, the Commission aims to avoid exposure to networks using Huawei and ZTE. It plans not to procure new services relying on their equipment and will work with Member States and telecom operators to gradually phase out these suppliers from the Commission’s existing connectivity services. This approach is part of the Commission’s corporate cybersecurity policy to enhance the security of its communications infrastructure.
Outside of Europe, countries such as the US, Australia, and Japan have implemented similar bans. The US has cited the risk that the Chinese government could compel Huawei to spy on American citizens or allies. Australia was one of the first to ban Huawei and ZTE from its 5G network in 2018, and Japan has also blocked the involvement of Chinese companies in sensitive sectors, including telecommunications.
Read more: How Huawei is winning over the global south
