Sepco3 and Huawei: political turmoil over Chinese companies in Belgium
In the past week, two incidents have brought the political turmoil surrounding Chinese companies in Belgium to a head. The first case concerns the construction of a new gas plant in the Liège village of Les Awirs by Chinese multinational Sepco3. The alleged purchase of Huawei hardware by the Belgian military intelligence service ADIV added to the concern. ADIV has since denied the purchase of Huawei computers, but the Sepco3 case highlights how the screening of foreign investments that may undermine strategic security is bogged down by traditional Belgian wrangling between the regions and the federal level.
On Thursday, Het Laatste Nieuws revealed that utility company Engie will be subcontracting the Chinese multinational Sepco3 for the construction of a new gas plant of Les Awirs, Belgium. A remarkable deal, given the risk of foreign interference associated with Chinese companies. Engie emphasised that it will operate the plant itself and that Sepco3 will be brought in to coordinate the work of other subcontractors.
The choice for this company caused concern among both government and opposition parties. Egbert Lachaert, chairman of governing party Open Vld (Flemish liberals), demanded "full transparency on the role of foreign powers in crucial infrastructure such as this" on Thursday. "If there is a risk that a Chinese company, which has obligations to the Chinese government, poses a security risk, we have to act," Lachaert's spokesperson added. "At a time when it is becoming painfully clear that we are dependent on regimes with an anti-democratic agenda (including Russia, ed.) for our gas supply, our electricity supply is being placed in the hands of China. This is completely inappropriate", N-VA (Flemish Nationalists) MP Bert Wollants stated.
On Thursday, Het Laatste Nieuws and VTM also reported that the Belgian military intelligence service ADIV allegedly bought five Huawei computers in the wake of a cyber attack last December. ADIV supposedly had limited access to its servers and invested in new equipment to avoid a similar situation in the future. ADIV strongly denies that these devices were manufactured by Huawei, but not that Chinese equipment in general was used.
The incidents focused attention on whether there are sufficient policy instruments to counter undesirable foreign investments in Belgium. European regulation giving EU Member States a framework to establish a national screening mechanism has been in place since 2019. Fourteen EU Member States have already installed such a mechanism, but Belgian screening is lagging behind. The reason appears to be a tug-of-war between the regional and federal governments.
In 2020, the installation of a screening mechanism was delayed because of disputes over whether such screening is a federal or regional competence. In 2021, there was mention of a federal screening committee with both federal and regional representatives. Today, the task has been placed in the hands of Federal Minister for the Economy Pierre-Yves Dermagne (PS, French-speaking socialists), but agreement has yet to be found on the 'content' of screening and on the composition and functioning of the screening committee, according to De Tijd. "We hope to land soon. The war in Ukraine shows the importance and urgency of such a screening mechanism", the Dermagne Cabinet said to De Tijd.
Disagreement between levels of governance is a familiar script in Belgian politics. The country is a federal state composed of communities and regions, each with their own competences. Six state reforms between 1970 and 2014 transferred various federal competences to the regional level, but the political struggle over which decisions should be taken at which level lives on to this day.
(KOR)
© BELGA PHOTO YORICK JANSENS