Europe would have to pay an extra €55 billion for 5G networks and suffer an 18-month technology delay if it bans telecom equipment purchases from top Chinese manufacturers, according to a report by the GSM Association, which represents 750 mobile operators worldwide. Ericsson, Nokia and Samsung, the non-Chinese contenders in the 5G market, do not have the capacity to handle all of the shift from 3G and 4G networks to 5G in Europe while honoring contracts already signed in North America and Asia. Huawei and ZTE account for about 40% of the EU market, and Huawei is “currently a pioneer in 5G technology”, according to the GSM analysis.

“A ban on Chinese vendors would severely lessen competition in the mobile equipment market, increasing prices and driving up 5G rollout costs,” the report said. It predicted that a ban would “result in slower rollout of 5G networks in Europe. U.S. President Donald Trump signed an executive order on May 15 to ban the technology and services of “foreign adversaries” deemed to pose national security risks. The U.S. Commerce Department consequently added Huawei and 68 affiliates to its Entity List, banning Huawei from buying parts and technology from U.S. firms without government approval. The U.S. later granted a 90-day reprieve of the ban.

Germany, France and the United Kingdom have so far rejected a total ban of Huawei. German Chancellor Angela Merkel has said companies that meet established safety criteria could take part in tenders for building Germany’s 5G network. The BDI, the federation of German industries, said that “Europe needs to maintain its own course” and the EU would decide independently which companies it would allow to build 5G network infrastructure.

Abraham Liu, Huawei’s Chief Representative to the EU institutions, recently said in Brussels that Huawei’s 5G solution is the best on the market and to a large extent a European product. “It is tailor-made for Europe’s needs,” he said. Huawei has been operating in Europe for almost 20 years and has 12,000 employees there, 70% hired locally. “Huawei is becoming the victim of bullying by the U.S. administration. This is not just an attack against Huawei. It is an attack on the liberal rules-based order. This is dangerous,” he said, as reported by the China Daily.