On October 10, Beijing time, Huawei filed an administrative appeal on Monday against the Spanish government’s 5G national subsidy regulations, because the regulations may cause Huawei to lose its qualifications for subsidies. Spain has pledged more than 500 million euros ($527 million) in state subsidies to develop 5G networks in rural areas of the country, but said certain suppliers deemed "high risk" would be excluded.
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The regulations clearly state that equipment, components and related software in key elements of 5G networks "will not be purchased from suppliers designated by Spain as high risk." They also said that if a supplier is labeled as high-risk, operators that have deployed the supplier's 5G technology may be forced to replace equipment.
In response, Huawei filed an administrative appeal through its Spanish subsidiary, claiming that the Spanish government's exclusion of certain suppliers violated the law, was excessive, and was politically motivated.
"The relevant provision interferes with operators' freedom to select the best provider based on objective criteria that reflect commercial, technical and security requirements. Instead, it attempts to exclude certain suppliers based on arbitrary political criteria," Huawei said in an emailed statement on Monday.
Spain's Economy Ministry, which is responsible for setting the rules, has not yet drawn up a list of banned suppliers. A spokesman for the economy ministry declined to comment.
Just a month ago, Huawei had appealed a 5G decision in Portugal after the country's Cyber Security Commission banned operators from using its equipment in the construction of 5G mobile networks.
The European Commission has stepped up pressure on member states to phase out the use of equipment from Chinese suppliers in their most advanced mobile networks. Among EU member states, Germany and Spain are two countries that rely heavily on Chinese equipment. According to a report published by StrandConsult, as of December 2022, 38% of Spain's 5G networks will come from Chinese suppliers. This compares to 59% in Germany, 17% in France and 51% in Italy.