Europe Steps Up “Huawei Gate” Investigation to Guard Against Chinese Communist Party

Recently, European governments are investigating a case allegedly involving “cash for influence” schemes, in which up to 15 current and former Members of the European Parliament (MEPs) have received bribes from Huawei, a telecommunications giant from China.

This case, initiated by Belgian intelligence agencies, underscores the need for Europe and other regions to be vigilant against foreign malicious influence activities.

On March 13, over a hundred police officers raided 21 offices in Belgium, France, and Portugal, including the office of Huawei lobbyists in Brussels, the capital of the EU. Several individuals were detained for questioning by federal police. One person was arrested in France. Two European Parliament assistants were under suspicion, and their offices were ordered to be sealed by the court. An office in Portugal was also raided for allegedly receiving wire transfers for MEPs.

On March 14, the European Parliament banned Huawei lobbyists from entering its premises.

The investigation involves allegations of corruption, fraud, organized crime, and potential money laundering. It is reported that as early as 2021, illegal gifting in exchange for political favors occurred in Brussels. These gifts reportedly included food, travel expenses, football tickets, and conference fees, with the value of gifts provided to each MEP exceeding 150 euros – a threshold that must be reported. It seems that for Huawei, the cost of buying a MEP’s influence is not high.

Huawei is suspected of close cooperation with the Chinese military and intelligence agencies, as well as countries like Iran, North Korea, and Cuba. Huawei possesses sophisticated technical means that could cause significant disruptions through espionage and sabotage activities in its active presence in 170 countries worldwide. Despite being banned from participating in the US telecommunications infrastructure, Huawei has engaged in projects in Mexico, referred to as the “trojan horse at the border,” which is dangerous and covert. In Europe, despite warnings from the US and the EU, Huawei continues to have a firm foothold in the telecommunications sector on the European continent, at a level similar to that in 2022.

Huawei has significant resources and broad influence, with a market value of up to $178 billion. The company has used some of these funds to establish connections with high-level European political figures, including building private connections with former European Council President Charles Michel.

Huawei apparently aims to use its influence to integrate and build various aspects of Europe’s artificial intelligence and cloud infrastructure, including providing services to government and university clients. The company has always advocated for achieving a “balance” between security and competitiveness.

However, are Europeans really willing to sacrifice their security for cheaper telecommunications services?

While most of Huawei’s activities in Europe fall within the legal spectrum, the high level of engagement and close ties with the Chinese government still raise significant concerns. In November, Huawei hosted the European Innovation Day 2024 in Paris. Participants reportedly included Nicola Caputo, a member of the European Committee of the Regions, Ximo Puig representing the OECD, Ana Paula Nishio de Sousa from UNIDO, and Rebeca de Sancho Mayoral, EU Innovation and Access to Finance Senior Advisor for the European Commission. One of the events in Paris was co-sponsored by Euronews.

At another event held in Davos, Switzerland in January, a journalist asked Kenneth Fredriksen, Huawei’s CEO for Europe, some moderate questions. He replied that Huawei hopes to become “an option for Europe” in multiple aspects. He explained that Huawei will continue to make contributions to Europe’s digitization, and he believes that Huawei will help Europe fundamentally prepare for the era of artificial intelligence and embrace it.

Fredriksen pointed out that artificial intelligence is not just an application layer. He said, “You need to have end-to-end infrastructure to fully harness the potential of artificial intelligence.”

Reportedly, the Davos event was an “exclusive executive roundtable luncheon,” with attendees including Fredriksen, former European Council President Michel, former Vice President Silvana Koch-Mehrin, and Romania’s Minister of Economy Ivan Bogdan.

Michel expressed some views that Beijing would like to hear, including tacit threats of retaliation in a “trade war” against the United States. He voiced support for the World Trade Organization (WTO) and “multilateralism.” In fact, since the early 1970s when the West opened up to China diplomatically, the Chinese Communist Party has exponentially expanded its global influence through its ideology of free trade, which facilitates its entry into multilateral forms of international governance.

The Beijing regime also seeks to influence the “subnational” level. According to Huawei’s social media accounts, in March this year, Huawei established a partnership with the Barcelona City Council in Spain. Huawei Europe announced on the social media platform X: “The Barcelona City Council collaborates with Huawei to promote ICT innovation and training.” This collaboration will “advance smart city projects and digital skills development through the Huawei Spain Academy and Barcelona Activa’s IT Academy.”

From the local to federal levels, organizations with ties to the Chinese government are actively influencing European and broader international politics. Therefore, at the very least, equal efforts should be devoted to resisting various legitimate and illegitimate forms of penetration from China. The European raids on Huawei lobbyists on March 13 mark a good starting point. Looking ahead, there is a long and arduous journey ahead.

Anders Corr, with a Bachelor’s and Master’s degree in Political Science from Yale University in 2001 and a Ph.D. in Government Management from Harvard University in 2008, serves as the President of Corr Analytics Inc., the publisher of the Journal of Political Risk. His research spans North America, Europe, and Asia. His latest works include “The Concentration of Power: Institutionalization, Hierarchy, and Hegemony” (2021) and “Great Powers, Grand Strategies: the New Game in the South China Sea” (2018).

The article was originally published in English language media.