UK defense minister admits ‘grave concerns’ over Huawei 5G equipment

James Chappell, co-founder and chief innovation officer at analysis firm Digital Shadows, told CNBC’s “Squawk Box Europe” Thursday that the EU would eventually be pulled into the debate.

“As countries become manufacturers of devices and technologies themselves, those technologies get pulled into these geopolitical debates, so this will continue,” he said.

“America exports a large amount of telecoms equipment, as does Europe, so I expect we’ll see places where American and European equipment is affected by these geopolitical movers. We haven’t seen Europe get so involved in (these) decisions, but someone’s going to have to decide at some point what they’re going to do because there are some risks to consider.”

Meanwhile Pelham Smithers, managing director of Pelham Smithers Associates, told “Squawk Box Europe” Thursday that it was “very dangerous” to put Huawei equipment into 5G infrastructure.

“It’s less of a problem at the consumer side, but at the service provider end everyone’s worried,” he said. “Maybe the problems will be resolved with Huawei, but for the time being I think telco companies are going to invest and they are going to be looking to providers like Nokia, NEC and Samsung.”

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