NATO Member Deals Blow to China

Romania, a NATO member, has rejected Chinese telecommunication giant Huawei's request to supply 5G equipment.

The country, which has been a member of the alliance since 2004, has officially denied a request from the Chinese telecommunications giant Huawei to provide equipment for its 5G network, Romanian news outlet Romania Insider reported on Friday.

The decision comes after Romanian President Klaus Iohannis, in June 2021, barred Huawei from participating in developing its 5G telecommunication networks because of security concerns. Huawei has since attempted to have the ban decision reviewed by the government.

Washington has deemed Huawei a security threat because the company allegedly has ties to the Chinese government. Huawei denies these allegations.

The Romanian government explained that the decision was "based on law 163/2021 regarding the adoption of measures related to information and communication infrastructures of national interest and the conditions for the implementation of 5G networks," Romanian news outlet Economedia.ro reported.

The Chinese embassy in Bucharest has criticized the Romanian government's decision to ban Huawei from 5G.

"We resolutely oppose the use of non-technical standards or discriminatory terms to exclude any country or enterprise, and resolutely oppose actions that undermine the principle of fair competition and the spirit of the rule of law," China's embassy in Bucharest said in a statement.

"Huawei has invested and operated in Romania for 20 years, strictly abiding by Romanian laws and regulations, and has maintained a good network security record. Huawei actively participates in the construction of Romania's communications network and is committed to promoting Sino-Romanian information and communications technology cooperation," the statement said.

The Romanian government justified its refusal on the grounds that communication providers must adhere to a strict criterion for selecting 5G technology, equipment, and software. This approval requires prior authorization from the prime minister and approval from the National Defence Council (CSAT), Romania Insider reported. The move is seen as a strategic step to protect the country's national security and defense.

Newsweek contacted China's embassy in Romania for comment.

Romania Insider has reported that the decision was made after assessments conducted by relevant institutions, evaluating potential risks, threats, and vulnerabilities to Romania's national security.

Among European countries that have used regulatory frameworks to restrict Huawei from 5G equipment supply include Sweden and Latvia. At the same time, other European countries have used regulatory restrictions to stop Huawei from supplying 5G equipment for critical government networks.

Romania's decision follows a study commissioned by Huawei in 2021, conducted by law firm Dentons and consultancy Audytel. The study estimated that Huawei would suffer a significant financial setback of €2.7 billion if excluded from Romania's telecommunications market due to the implementation of the 5G law, Romania Insider reported.

Despite the stringent legislation designed to prevent Chinese companies from entering the market, Romania authorized another Chinese tech giant, Lenovo, as an equipment provider for the 5G network last year, Romania Insider reported.

"Huawei has invested and operated in Romania for 20 years, strictly abiding by Romanian laws and regulations, and has maintained a good network security record," the Chinese Embassy in Bucharest said in a statement.