Concern over Huawei ahead of 5G auction

European providers to field bids from mobile network tech suppliers

This year, the much-hyped rollout of the fifth generation of cellular networks is set to hit Europe, and it promises to revolutionize the speed and efficiency of mobile technology

European network providers are poised to field bids from suppliers of 5G network equipment, and historically such upgrades have meant a swathe of lucrative contracts for Huawei, the world's largest supplier of mobile network equipment.

But the Chinese company faces its most uncertain auction season yet, after a United States-led boycott of Chinese vendors disrupted the global telecommunications landscape.

Nations including the US, Japan, Australia, and New Zealand have effectively barred Huawei from participating in domestic 5G network tenders.

On Wednesday, it emerged that the European Union may increase its scrutiny of Chinese telecommunications companies following the actions of its allies.

"A number of like-minded countries are increasingly concerned about China's behavior in this sphere," an unnamed Western diplomat told the Financial Times. "EU countries, including Spain, Italy, and Finland, held 5G auctions in 2018, with a clutch of others scheduled for 2019. The sales can raise billions of euros for government. We are urging everyone to avoid making any hasty moves they might regret later."

In December, Czech security officials warned domestic network providers against using Huawei hardware.

The UK has not followed the US in barring Huawei or its Chinese competitor ZTE, however several British security officials have voiced concern that Chinese participation in the UK's 5G rollout could pose a threat to national security.

Last week, Gavin Williamson, the UK's defense secretary, said he had deep concerns about Huawei providing equipment for the 5G network in Britain.

In early December, Alex Younger, the head of the UK's Secret Intelligence Service, which is also known as MI6, also said the government should question Huawei's participation.

On Friday, Wu Qian, China's Ministry of National Defense spokesman strongly rebuked the comments, saying "anxiety and confusion" had led to a series of "groundless allegations".

Wu said British authorities had exhibited "deep-rooted pride and prejudice" when questioning Huawei's involvement in tenders.

In a New Year message to employees, Huawei rotating chairman Guo Ping lamented the "incredibly unfair treatment" the company had received from foreign governments.