Barring Huawei Out of Portugal Unreasonable: CCILC

On Monday, the Board of Directors and Strategic Council of the Portuguese-Chinese Chamber of Commerce and Industry (CCILC) condemned the exclusion of Huawei from Portugal's 5G market as "unreasonable."

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In May, Portugal's Security Assessment Committee, within the scope of the Superior Cyberspace Security Council, released a deliberation on the "high risk" for the security of 5G networks and services from the use of equipment from suppliers that are from outside the European Union (EU), the North Atlantic Treaty Organization (NATO) or the Organization for Economic Cooperation and Development (OECD).

While the deliberation did not explicitly name companies or countries, it effectively excluded Huawei from consideration, sparking widespread controversies across Europe. During a meeting held in Lisbon, the chamber voiced its deep concern about the decision, particularly its disproportionate impact on Chinese companies like Huawei.

It highlighted the potential ramifications for Portugal's economic development, including concerns related to attracting and retaining foreign investors. One of the primary concerns shared by participants in the meeting was the decision's reasonableness, especially when compared to guidance from European bodies and the measures taken by other EU states.

The participants also engaged in discussions about the potential repercussions of this decision on Portugal's international reputation, the increased financial burdens on operators and consumers, and the possible setback in Portugal's digitalization efforts.

"The Strategic Council of the CCILC firmly believes that Portugal should not compromise its own interests under external pressures," said the Chamber following the meeting.

The participants described the Portuguese government's decision as having global implications and characterized it as "hostile" towards foreign entities operating in the country, especially Chinese companies.

The Chamber emphasized that this situation is both "extremely embarrassing" and economically costly for operators, potentially being one of the reasons why other EU member states have adopted milder measures compared to Portugal, which completely excludes Huawei from the country's 5G networks.

Furthermore, it expressed concern about the negative impact of this decision on economic cooperation between Portugal and China, as well as its potential deterrent effect on future Chinese investors.