Chinese telecom company ZTE Corp has revealed plans to expand its 5G rollout in Europe following the economic bloc's decision not to ban Chinese telecommunication companies from its 5G networks. The move is direct defiance to the US' push to ban Chinese firms from the region's 5G rollout.
Despite the torn stance of EU countries, ZTE Corp will likely still have an uncertain prospect in the UK in particular given its continued ban on China-based corporations. ZTE's chief security officer, Zhong Hong, mentioned that the company believes that the UK would eventually come up with a more transparent and evidence-based method in determining which companies it would be working with despite where they are from. Zhong added that the UK's framework to manage security risks could eventually lead to its eventual certification.
The Shenzhen-based telecommunication products provider added that it has a fully transparent policy when it comes to its customers. It is also inviting regulators and interested third-parties to conduct their own independent security assessments on their equipment if needed. Zhong pointed out that it is also committed to assisting its customers to meet their specific requirements.
The UK, particularly its National Cyber Security Center, originally banned the use of ZTE's equipment in 2018 after it expressed possible security concerns. Despite the ban, ZTE has expressed interest in investing in the UK's 5G rollout using the $1.6 billion it raised from a private placement of A-shares in China last month.
ZTE was previously brought close to collapse after the US imposed massive sanctions against it back in early 2018 after it was accused of breaching trade regulations. ZTE eventually reached a settlement with the US government in June 2018.
As of the moment, countries within the European Union are still torn with the issue of allowing Chinese companies to become involved in the bloc's 5G development. Last week, the European Commission endorsed a so-called joint toolbox of taking action to address the security risk of its 5G-network rollout. The commission has called on member countries to put in place measures by the end of April this year.
The global 5g rollout is estimated to reach more than $249 billion by 2025. Companies from China and other countries are all vying to take a piece of the pie as economies are accelerating their efforts to implement the next-generation wireless infrastructure. In the EU, the rollout is particularly important, but officials have expressed legitimate cybersecurity concerns given its allies continued warnings. Some as a key decision-maker for other EU members is seeing the UK's stance on the entire issue.
