Financial Times: EU is funding Huawei in critical tech projects despite bans on the Chinese group

By Kate Yuan

(JW Insights) Jun 15 -- The EU is funding Huawei to run cutting-edge research on multiple projects, including AI, 6G and cloud computing, even though several European governments have banned the Chinese tech group from their telecoms networks, Financial Times reported on June 14.

The Financial Times identified Huawei as a participant in 11 projects under the bloc’s flagship Horizon Europe research and innovation programme, receiving up to 14% of funding per scheme totaling €3.89 million ($4.2 million).

Huawei provides infrastructure equipment and AI platforms for the EU-backed research projects, which also include quantum sensing, connectivity and a framework for autonomous driving.

In addition to the 11 Horizon Europe projects where Huawei received EU funding, it is also a participant in two programmes in which it received no EU grants. The commission said that the amount was the equivalent of less than 1% of funding for 6G, AI and cloud computing-related research programmes under Horizon Europe.

Some analysts warned the company’s participation could undermine data security within the bloc as well as the EU’s ambition to stay self-reliant in developing critical technological infrastructure.

“The openness of the Horizon Europe work programme to international co-operation is balanced with the need to safeguard EU interests in strategic areas, as well as with respecting international rules and fundamental EU values,” the commission said.

Huawei said it had participated in more than 30 programmes within the EU’s flagship R&D framework since 2007. It added that international co-operation was vital and the company’s involvement in Horizon Europe was “evaluated independently by different panels of experts selected by the EU” and officially approved.

One of the projects involves research to build a high-security framework around the safety of connected cars and autonomous driving. US chipmaker Intel, Japanese automotive parts supplier Denso, and Stellantis, the world’s fourth-largest carmaker, are also partners in the project.

Thanassis Giannetsos, the project co-ordinator, said Huawei had the “expertise” to support the consortium’s goal of building the methodology for future autonomous driving, according to the Financial Times report.