LibraryLeadership Ethics Case Library - University of Arizona Center for Leadership EthicsCaught in a Geopolitical Tug of War: Huawei, 5G, and the European Union
Leadership Ethics Case Library - University of Arizona Center for Leadership Ethics
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Last Updated: 04/02/2026
Case Organization
https://eller.arizona.edu/departments-research/centers-labs/leadership-ethics
Eller College of Management 520-621-2165 1130 E. Helen St. | P.O. Box 210108. Tucson, AZ 85721-0108
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The "fifth generation" (5G) of telecommunication systems will be one of the most critical building blocks of the European Union (EU) digital economy and society in the next decade. The EU has taken significant steps to lead global developments towards this strategic technology. 5G will provide virtually ubiquitous, ultra-high bandwidth, and low latency connectivity not only to individual users, but also to connected objects.1 From artificial intelligence to self-driving cars to telemedicine, all the things Europeans hope will make their lives easier, safer, and healthier will require high-speed, always-on internet connections. However, China-based Huawei Technologies Co., the world’s largest provider of telecom equipment maker and leader of 5G technology, has faced opposition in the EU over building out the new 5G infrastructure on the continent. Amid security concerns, the EU has raised fears that Huawei’s equipment could be used to spy on countries and companies at the behest of the Chinese government. The case involves multiple stakeholders and raises economic, legal, and ethical issues worthy of consideration.Huawei’s technology touches virtually every corner of the globe. Huawei’s carrier business (e.g., networking equipment) has been the company’s heart and soul, but its enterprise business (e.g., cloud computing) has grown at breakneck speed. Huawei got its start supplying telecom equipment to rural areas of China, which remains its largest market. Huawei later expanded to other developing markets before capturing a significant share of Europe’s telecom market. Currently, Huawei along with Chinese peer ZTE, hold a combined market share in the EU of more than 40%.2 Huawei is well entrenched in existing 4G wireless networks on the continent. Huawei’s equipment is priced so cheaply and is of such high quality that EU mobile operators have little choice but to use it. If the EU were to institute a ban on Huawei due to security threats emanating from its products, replacing existing networks would be expensive. For EU countries that have Huawei 4G gear, it makes sense to have their 5G gear as well, as there are financial incentives that can’t be overlooked. Neither operators nor the governments of the EU have the funding to replace Huawei in their networks. |
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Learning Objectives
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This case focuses on the intersection of technology strategy, geopolitical risk, and regulatory decision-making in a critical infrastructure market. Students will examine how security concerns, market dependence, and international politics shape the competitive future of a major telecom provider in Europe. The case builds practical skills in regulatory analysis, stakeholder evaluation, and strategic assessment under uncertainty.
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