The US encourages NATO partners to allocate defense budgets to substitute Huawei.

      The United States has identified a new approach to utilize Europe’s increasing defense budgets: eliminating Huawei. However, whether its allies are receptive to this idea remains uncertain.

      Joshua Young, the State Department’s coordinator for China, informed officials in Brussels last month that NATO member countries should allocate defense-related funds—which contribute towards the alliance's spending goals—to remove Huawei equipment and substitute it with alternatives from other vendors, as reported by Bloomberg.

      While Young did not specify which countries he was referring to, one individual suggested his comments were directed at Germany. The response was lukewarm.

      These remarks originated from a relatively lower-ranking diplomat, and allies, accustomed to mixed signals from the Trump administration, did not react immediately, according to sources familiar with the closed meeting. The State Department chose not to provide a comment.

      The proposal builds on NATO's evolving financial framework. Last year, almost all member countries agreed to increase their defense expenditure to 5 percent of GDP, with 3.5 percent allocated for fundamental military requirements and an additional 1.5 percent for defense-related sectors, responding to a demand from President Trump. A NATO official clarified that this latter category can indeed fund network security initiatives, including vendor replacements, which is the opportunity Washington aims to leverage.

      However, Europe remains divided. The European Commission has classified Huawei and ZTE as “high-risk suppliers” and seeks stricter regulation through an updated Cybersecurity Act, yet Germany and Spain are resisting a ban at the EU level, favoring national authority and concerned about potential backlash from Beijing.

      Germany has already struggled with the financial implications, having considered compensating Deutsche Telekom and other providers with public funds to eliminate Chinese technology.

      The magnitude of the task explains the hesitance. Chinese suppliers reportedly account for approximately 30 to 40 percent of Europe's 5G infrastructure, and a complete removal would represent the largest mandatory replacement of telecommunications equipment in European history. By framing this expenditure as a defense expense, the U.S. presents allies with both a means to finance it and justification for doing so.

      There is also discord regarding what qualifies under this category. American officials have criticized allies for expanding the 1.5 percent designation to include items only vaguely related to defense; Italy had previously proposed considering a significant bridge in Sicily before retracting.

      Network security is a more straightforward argument, and the matter will reemerge when NATO leaders convene in Turkey next month.

      Currently, it remains a suggestion rather than an official policy, put forth by a mid-level official and met with indifference. However, it reframes the politically sensitive issue of removing Chinese technology as something akin to a NATO responsibility. If this narrative takes hold, countries with significant Huawei equipment may find it easier to justify the expense, even as discussions in Brussels continue over the fundamental principle.