Henna Virkkunen, nominated as the European Union’s next tech and security commissioner, faces an uphill battle to secure Europe’s telecommunications infrastructure against a looming security threat. The crux of the issue? Europe’s heavy reliance on Chinese tech giant Huawei. This dependency, many argue, hands China unprecedented leverage over Europe, threatening the privacy, security, and stability of an entire continent. As Virkkunen prepares to step into her new role, she’s tasked with a massive mission: dismantling a telecom network where foreign interests have a foothold and pushing EU countries to wean themselves off Chinese technology.
Let’s be very clear about this: any equipment installed in Europe by China is compromised. The Chinese government has the ability to spy on any communications passing through their technology, or shut it down, creating a direct threat to European security. Huawei’s equipment became prevalent due to affordability because it is subsidized by the Chinese government – precisely to achieve this penetration. This was an intentional maneuver, designed to undercut European competitors and install a potentially unrestricted surveillance tool across critical European infrastructure.
Huawei’s dominance in Europe is no small issue. Huawei has woven itself deeply into the telecom fabric of the EU, providing critical infrastructure that underpins everything from personal communications to government data transfer. It’s estimated that Huawei holds 31% of the global telecom revenue market share, making it the leading player. But this comes with a price, and Virkkunen knows it. In her own words, “Europe needs to avoid ‘critical dependencies on single suppliers and de-risking our supply chain from high-risk suppliers.’” Yet, despite the 2020 EU “5G Toolbox” that advised member states to reduce their reliance on Chinese telecom providers, Europe has made only halting progress.
The Stark Reality of Europe’s Dependency
Europe’s situation is dire. In Finland alone, Huawei components make up 41% of telecom infrastructure. This is a troubling statistic, particularly as Finland has not fully implemented the 5G Toolbox plan. The country’s close trade ties with China, a powerful economic partner, complicate matters. For Finland, China represents one of its most important trade relationships, with Finnish companies making nearly €20 billion annually from business with China. John Strand, a telecom consultant, captures Finland’s difficult situation: “Finland hoped that if they were soft on Huawei, the Chinese would throw some crumbs after Nokia. But the reality is that no breadcrumbs came.”
Yet, Finland isn’t alone in this predicament. Only 11 of the EU’s 27 member states have implemented meaningful restrictions on Huawei or ZTE, another Chinese telecom giant. European leaders acknowledge the risk, but the reality is that fully phasing out Huawei is a long, costly process. Despite the EU’s “5G Cybersecurity Toolbox” recommendations, many countries have chosen to address Huawei in their own way, often through slow-moving, incremental steps that do little to secure the network comprehensively.
The Threat Behind Huawei’s Infrastructure
The central concern with Huawei is its relationship with the Chinese government. Under Chinese national security laws, companies like Huawei could be compelled to hand over data or grant access to the Chinese state. This is especially concerning given Huawei’s critical role in Europe’s telecommunications, which could theoretically allow China to spy on sensitive European government communications, citizens’ personal data, and corporate secrets. As Strand, the telecom consultant, ominously points out, “The Chinese can shut down or slow or meddle with the mobile network. It will devastate the European economy. It will make the Russian gas story look like a trailer to a horror movie.”
The security risks are more than hypothetical. China-backed cyberattack groups like Earth Baku have expanded their reach into Europe, targeting everything from healthcare to government agencies. Recent breaches, like those involving spyware on European politicians’ devices and the infiltration of Germany’s telecom network, underscore how vulnerable Europe is. According to cybersecurity researchers, groups like Earth Baku use sophisticated malware that allows them to infiltrate and exfiltrate data from targeted systems with ease. These tools not only harvest sensitive information but also enable potential disruption of entire systems — a power that could grind essential services to a halt if wielded strategically.
Economic Dependence and Political Hesitation
Europe’s hesitancy to cut ties with Huawei stems from both economic and diplomatic reasons. China is a major investor in European economies, with €14.1 billion in investments in Finland alone between 2000 and 2023. Many countries worry that pushing Huawei out too aggressively could sour these valuable trade relations. Finland, for example, faces immense pressure from its business community, which values China as an essential trade partner. Some European leaders fear that a hardline stance against Huawei could provoke economic retaliation from China, much like the fallout Germany faced with Russia over natural gas.
In Germany, officials recently mandated that all Huawei components be removed from the core of the nation’s 5G networks by the end of 2026. However, this approach has drawn criticism as a delayed, minimal effort to address a pressing issue. Many critics argue that by the time this requirement is met, Huawei’s presence in the infrastructure will have already posed years of potential risks.
Henna Virkkunen’s Daunting Task
As Henna Virkkunen prepares for her hearing, she faces a stark choice: enforce a security agenda that may anger key trade partners or risk Europe’s exposure to espionage and sabotage. Her mandate, given by European Commission President Ursula von der Leyen, calls for “protecting and securing the bloc’s digital economy in the global race for tech supremacy.” Virkkunen is no stranger to advocating for a tough stance on China. In the European Parliament, she argued that the EU must “resolutely reduce its dependence on China” and reminded member states of their responsibility to choose “trusted vendors.” Yet, to follow through, she will need to convince hesitant EU countries to take on both the financial and diplomatic costs of ousting Huawei.
The Cost of Action — And Inaction
The financial costs of removing Huawei are high, but the potential consequences of inaction are even greater. Telecom expert John Strand estimates that replacing Huawei’s radio access network in Germany alone would cost around €29 per person. This may seem steep, but compared to the economic catastrophe that could follow a security breach, this one-time investment is minor. And for countries that have yet to integrate much Huawei equipment, such as in 2019 when Strand estimated a replacement cost of just €6.50 per person across Europe, the window of opportunity is closing rapidly.
The EU has earmarked €900 million over the next three years to fund critical tech development, hoping to bolster companies like Nokia and Ericsson as secure alternatives to Huawei. This funding, however, can’t come fast enough, as Chinese tech remains embedded in much of Europe’s infrastructure.
A Slow Goodbye to Chinese Telecom Dominance?
Europe’s dependence on Huawei underscores a dark reality: without immediate, coordinated action, the EU risks remaining under the influence of a foreign power with a troubling track record. Virkkunen’s mission to secure Europe’s digital infrastructure will require overcoming not just technical hurdles, but economic dependence and political inertia. The EU’s measured approach — allowing Huawei’s equipment to remain until new networks are installed — is a dangerous game that could leave the region vulnerable for years to come.
Henna Virkkunen’s appointment comes at a critical juncture. Her challenge will be to unite a divided Europe under a single objective: securing the continent’s telecommunications against foreign control. If she succeeds, Europe might avoid a catastrophic loss of autonomy and security. If she fails, Huawei’s foothold will remain a glaring vulnerability in Europe’s technological landscape. The stakes are high, and Europe can ill afford to delay.