Consumers line up outside a Huawei flagship store for Mate 60 pro series on September 3, 2023. Photo: Courtesy of Huawei

Portugal may have to bear significant costs in its telecom sector should the country ban Huawei products, warned a Chinese industry expert. He urged the Western European nation to treat the Chinese technology company fairly and reasonably, without merely following in the footsteps of the US.

These remarks followed media reports which said that Huawei has filed a lawsuit in a Lisbon court against a resolution by Portugal's cybersecurity council, CSSC. This resolution effectively prevents operators from using its equipment in high-speed 5G mobile networks, Reuters reported, citing the company on Tuesday.

Experts commented that Huawei's decision to file a lawsuit is a natural move for the company to defend its legal rights in its target market.

"Huawei has always sought to protect its rights and interests through legal means on similar issues. Even though the Portuguese market is not large, it is worth the effort," said Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, in a statement to the Global Times on Tuesday.

Though the projected odds of winning the lawsuit are 50-50, depending on the judge's inclinations, pursuing it is essential, the expert added.

In May, Reuters reported that Portugal's cybersecurity council, CSSC, issued a resolution potentially barring telecom operators from using Chinese equipment in their high-speed 5G mobile networks and the 4G platforms upon which the new technology is based.

While the CSSC's resolution did not specifically name Huawei, it was perceived as an obstacle to Huawei's efforts to penetrate the standalone networks in Portugal's 5G market.

"In Portugal, Huawei seeks to protect its legitimate interests and legal rights as a company properly established under the country's laws," Huawei informed Reuters when asked about the lawsuit. The company further expressed hope that the Portuguese court would "remedy the multiple violations" of its rights.

As of press time, Huawei has not responded to a request for comment from the Global Times.

Xiang pointed out that many countries aren't eager to impose further sanctions on Chinese tech companies like Huawei. This hesitancy is because the US hasn't systematically responded, and the potential high costs might be a deterrent.

"If Portugal bans Huawei's products, it will lead to significant costs in the nation's telecom sector," Xiang observed, adding, "it will be challenging to find an appropriate substitute, and no one will cover the government's expenses."

There might be continued attempts to contain Huawei in other nations, but the outcome remains uncertain, the expert mentioned.

This news comes just a week after the Chinese tech giant unexpectedly began preorders for its new smartphone. Industry analysts speculate that this phone utilizes a domestically-produced 5G-capable chipset.

This surprise launch underscores the company's ability to pursue independent technological research and development, even in the face of US sanctions.