Huawei Dominates MWC 2024 Despite Western Bans, Exposing EU Policy Disconnect
Chinese tech giant showcases 5.5G leadership while securing Middle East deals, as fewer than half of EU states enforce restrictions on its equipment.
Huawei exhibited at Mobile World Congress Barcelona 2024 in February with a full portfolio of next-generation network products, signing strategic partnerships with operators in the UAE and Saudi Arabia even as European governments struggled to enforce security restrictions against the company.
The disconnect between policy and practice has become stark. According to Euronews, only 11 of 27 EU member states had implemented legal restrictions on Chinese vendors by August 2024, despite years of warnings from Brussels about national security risks. Meanwhile, Light Reading reported that Chinese vendors supplied nearly a third of all 5G sites across 32 European countries in late 2024—unchanged from mid-2022.
At MWC Barcelona 2024, held February 26-29, Huawei occupied stand 1H50 in Hall 1, showcasing what it called “Advance Intelligence” solutions across 5.5G, F5.5G, and Net5.5G product lines. The company launched the industry’s first telecom foundation model, designed to improve network productivity through AI-powered applications. Huawei unveiled eight 5.5G innovation practices and demonstrated New Calling-Advanced solutions with multi-modal communication capabilities, including voice-controlled digital avatars for enterprise branding.
Middle East Partnerships Offset Western Losses
During MWC 2024, Huawei signed memoranda of understanding with UAE operator du and Saudi Arabia’s Zain KSA, both focused on 5.5G network deployment. The du partnership aims to establish a demonstration benchmark for 5G Advanced commercial networks in the Middle East, while the Zain KSA agreement covers development of “All in 5.5G” solutions for consumers and businesses. Kuwait Telecommunications Company (stc) also signed a 5.5G cooperation agreement at the event.
These Middle East deals illustrate Huawei’s strategic pivot. According to CNBC, Huawei’s 2024 revenue exceeded 860 billion yuan ($118.27 billion), representing 22% year-over-year growth—the fastest since 2016. Dell’Oro Group confirmed Huawei held 31% of the global telecommunications equipment market in 2024, up from 30% in 2023, solidifying its position as the world’s largest vendor despite U.S. sanctions.
Regional revenue data shows the geographic shift. China accounted for 615.3 billion yuan, while Europe, the Middle East, and Africa generated 148.4 billion yuan—up 2.1% from 2023, according to Yicai. Operators using Huawei solutions ranked number one in network experience during 2023 testing in key German, Austrian, and Dutch cities, the company stated at MWC.
Europe’s Enforcement Problem
The European Commission’s 2020 5G Cybersecurity Toolbox recommended member states restrict high-risk vendors, explicitly identifying Huawei and ZTE. But implementation has been glacial. Euronews reported in February 2024 that only 10 countries had imposed actual restrictions, despite nearly all member states establishing regulatory frameworks.
| Country | Status | Timeline |
|---|---|---|
| Germany | Partial ban | Core network by 2026; management systems by 2029 |
| France | License restrictions | No renewals for Huawei 5G licenses after 2028 |
| Sweden | Full ban | Removal completed by January 2025 |
| Italy | Case-by-case | No blanket ban; individual deal blocking |
| Spain | Limited action | Continues to use Chinese equipment |
Germany’s approach exemplifies the compromise. In July 2024, Berlin announced operators must remove Huawei and ZTE components from 5G core networks by end-2026, but crucially allowed them to retain radio access network equipment—the bulk of the infrastructure—if they replaced configuration management systems by 2029. Strand Consult data showed Germany still relied on Chinese vendors for 59% of its 5G sites at end-2024.
Economic factors drive the reluctance. Investment analysts estimate Germany faces €2.7 billion in replacement costs across 91,000 telecom sites. Major operators including Deutsche Telekom, Vodafone, and Telefónica have threatened compensation demands if forced to rip out existing equipment. Countries view Huawei’s technology as affordable and reliable, according to the European Telecommunications Network Operators Association.
Western security concerns stem from China’s 2017 National Intelligence Law, which allows Beijing to compel any organization to assist with intelligence work. While Huawei has consistently denied Chinese government ties and no backdoors have been publicly confirmed, EU cybersecurity assessments warn that software updates could introduce vulnerabilities. The U.S. effectively banned Huawei from its networks in 2019, urging allies to follow suit.
Nordic Vendors Struggle Amid Market Downturn
Huawei’s resilience contrasts with difficulties facing Ericsson and Nokia. Counterpoint Research reported Ericsson’s 2024 revenue fell 5% to $23.5 billion, while Nokia announced 14,000 job cuts following lost contracts. The global telecom equipment market declined 11% in 2024, marking the steepest drop in over 20 years, according to Dell’Oro Group.
North American markets provided some relief—Ericsson saw 24% revenue growth there, driven by AT&T and Verizon contracts. But the European situation remains problematic for Western vendors. Industry analysts note that major European telecom groups like Vodafone and Deutsche Telekom continue to admire Huawei’s 5G capabilities, resisting government pressure to switch suppliers. Only six small EU countries had zero Chinese RAN products deployed by end-2024, per Strand Consult.
Nokia and Ericsson have over 200 publicly reported 5G client engagements each globally. But Huawei’s dominance in China—which manufactured 58% of all Chinese 5G base stations in 2023—gives it massive scale advantages. The company operates in over 170 countries and employs more than 10,000 people in Europe alone, with 18 R&D centers across the continent.
- Huawei’s 2024 revenue grew 22% to $118.27 billion despite Western sanctions, with 31% global telecom equipment market share
- Only 11 of 27 EU states implemented vendor restrictions by mid-2024; Chinese vendors still supply 32% of European 5G sites
- MWC 2024 partnerships with UAE and Saudi operators demonstrate Middle East growth offsetting Western losses
- Replacement costs exceeding €2.7 billion in Germany alone drive operator resistance to ban enforcement
- Ericsson and Nokia posted 2024 revenue declines as global telecom equipment spending fell 11%
What to Watch
The European Commission is reportedly preparing legally binding restrictions to replace its voluntary 5G toolbox, potentially withholding EU financing for telecom projects in non-compliant countries. Whether this pressure will overcome national reluctance remains uncertain. Germany’s compromise approach—allowing RAN equipment but requiring management system replacement—may become a template, though security experts argue it fails to address core vulnerabilities.
For Huawei, the 2024 commercial launch of 5.5G (or 5G-Advanced) represents the next battleground. The company deployed the technology in over 200 cities globally during 2024, per its MWC announcements. With 6G standards development beginning, the window for European operators to diversify suppliers is narrowing. Watch whether 2025 brings actual enforcement or continued policy drift—and whether Middle East and Asian markets can fully compensate Huawei for any eventual European losses. The company’s R&D spending of $24.7 billion in 2024—representing 20.8% of revenue—ensures it will remain technologically competitive regardless of Western restrictions.