The US is encouraging NATO allies to allocate defense funds for replacing Huawei.

      The United States has discovered a new purpose for Europe's increasing defense budgets: eliminating Huawei. Whether allies are receptive to this idea is another question.

      Last month in Brussels, Joshua Young, the State Department's China coordinator, advised NATO officials that member countries should utilize defense-related funding—which contributes to the alliance's spending goals—to remove Huawei devices and replace them with equipment from other suppliers, according to Bloomberg.

      While he did not specify which countries he was referring to, one source indicated that his comments were directed towards Germany. The response was tepid.

      Young, being a relatively lower-ranking diplomat, saw his remarks met with silence from allies who have become accustomed to inconsistent messages from the Trump administration, as reported by those familiar with the private discussions. The State Department chose not to comment.

      The proposal hinges on NATO's new financial framework. Nearly all members concurred last year to raise defense spending to 5 percent of GDP, allocating 3.5 percent for essential military requirements and an additional 1.5 percent for defense-related sectors, in response to a demand from President Trump. A NATO official stated that this latter portion could indeed be used for network defense, including vendor replacements, which is an opportunity Washington seeks to capitalize on.

      Europe remains divided on this issue. The European Commission has categorized Huawei and ZTE as "high-risk suppliers" and aims for stricter oversight through an amendment to its Cybersecurity Act. However, Germany and Spain are spearheading opposition to a blanket EU ban, favoring national control and fearing backlash from Beijing.

      Germany has already grappled with the financial implications, considering the prospect of compensating Deutsche Telekom and other companies with public funds to replace the Chinese technology.

      The magnitude of the task accounts for the hesitance. Chinese providers are estimated to furnish around 30 percent to 40 percent of Europe's 5G infrastructure, and fully removing their equipment would constitute the largest mandatory replacement of telecommunications infrastructure in the history of Europe. By reframing this expenditure as defense spending, the US is presenting allies a method for funding it as well as a justification.

      There is also discord over what expenditures qualify. US officials have critiqued allies for broadening the 1.5 percent category to encompass items only loosely associated with defense; for instance, Italy once proposed the inclusion of a large bridge in Sicily before retracting.

      Network security is a more palatable argument, and this topic will resurface when NATO leaders convene in Turkey next month.

      At this point, it remains merely a suggestion, not an established policy, put forth by a mid-level official and met with indifference. However, it reframes the politically contentious issue of removing Chinese technology as a potential NATO obligation. Should this perspective gain traction, countries with significant Huawei infrastructure might find it easier to justify the associated costs, even as Brussels continues to debate the underlying principles.