A report from Oxford Economics finds that Huawei supports more than 220,000 jobs across Europe and makes a significant contribution to the region’s economy.
The study arrives as Huawei faces restrictions and bans in several Western countries amid security concerns led by the United States.
According to Oxford Economics, Huawei contributed €16.4 billion to Europe’s GDP and supported 224,300 jobs in 2019.
Huawei is the world’s largest network equipment vendor by market share, estimated at roughly 35.3 percent. By comparison, the next largest supplier, Nokia, holds around 16.1 percent.
Removing Huawei hardware and replacing it with other vendors’ equipment will be both costly and time-consuming, and could slow the rollout of 5G networks across Europe.
Last month, Huawei published a separate report, conducted by Assembly Research, warning that delays to 5G deployment in the UK could risk as much as £108 billion in economic benefits over the next decade, including the potential creation of 350,000 jobs outside London and the South-East.
That claim—that the UK would be placed in a “digital slow lane” without Huawei—has been disputed. In August, a poll of 3,000 experts by The Chartered Institute for IT found that more than half did not accept Huawei’s assertion that a ban would materially damage the UK’s digital prospects or increase consumer bills.
“Huawei’s claim that the UK will somehow be thrown into a dark age without them looks like hubris, according to most IT professionals,” said Dr Bill Mitchell OBE, Director of Policy at BCS, The Chartered Institute for IT.
At the same time, the majority of those surveyed believed that removing Huawei equipment from national mobile and broadband networks would improve the UK’s security.
Security worries stem from allegations that the Chinese government can influence Huawei, a claim the company has consistently denied.
When announcing Sweden’s decision to ban Huawei, the Swedish Post and Telecom Authority cited the influence of China’s one-party state over the private sector, saying this can create strong incentives for companies to act in line with state goals and national strategies.
Sweden set a deadline of January 2025 to remove Huawei equipment from existing infrastructure, which is two years earlier than the UK’s deadline.
Huawei recently filed a legal appeal against Sweden’s decision, but the company continues to face significant regulatory and political challenges across Europe despite the economic impacts highlighted by the Oxford Economics report.
Oxford Economics’ full report is available from the organisation for those who want detailed findings and methodology.
(Photo by Ben White on Unsplash)
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