The Czech Republic’s taxation authority has excluded the Chinese IT company Huawei from a public tender procedure to build a tax portal for almost 20 million euros.
The decision comes after the Czech National Cyber and Information Security Agency (NCISA) warned of security threats posed by the Chinese telecoms supplier and asked 160 public and private operators to conduct an analysis of risks and act accordingly.
The Czech Republic falls victim of the US-China war, after Washington restricted access for Huawei’s technology as the company faces growing scrutiny over its ties with the Chinese government and allegations that Beijing could use its technology for spying.
“China’s laws require private companies residing in China to cooperate with intelligence services, therefore introducing them into the key state systems might present a threat,” said Dusan Navratil, NCISA director.
“We categorically deny any suggestion that we pose a threat to national security,” said a Huawei spokesman in response. “We call for NCISA to provide evidence instead of tarnishing Huawei’s reputation without any proof.”
The ban on Huawei could cost Europe tens of billions of euros that were meant to be used to build new 5G networks.