EXCLUSIVE How the Presidential Administration explains the authorization of the Chinese company Lenovo to participate in the 5G network in Romania: The organization is under Hong Kong laws, which are based on the rule of law and the independence of the judiciary

The Presidential Administration explains, in a response to G4Media.ro, why the Supreme Council of National Defense (CSAT) endorsed the Government’s decision to authorize the Chinese company Lenovo to participate in Romania’s 5G network: the organisation operates under Hong Kong laws, which are based on the rule of law and the independence of the judiciary, under the principle of „one country, two systems”.

The Romanian Government authorized the Chinese company Lenovo to participate in the 5G network in Romania by a decision taken on 19 July and published in the Official Gazette no. 664. The decision to allow the Chinese company was made in a context where Romania has a special law created from 2021 to keep Chinese companies at bay, due to major suspicions of the Chinese communist state’s involvement in technological espionage activities.

Hong Kong has a special status, different from other Chinese cities. Hong Kong was a British colony for more than 150 years. Part of the city came under British jurisdiction following the War of 1842. Later, China granted a 99-year concession to Britain and the rest of the city – the so-called New Territories.

The two sides reached an agreement in 1984 that Hong Kong would return to China in 1997, but operate under the principle of „one country, two systems”. This gives Hong Kong „a high degree of autonomy, except for foreign and defense policy” for 50 years.

Hong Kong therefore has its own legal system, its own borders and guaranteed rights such as the right to assembly and the right to free speech.

The full Presidential Administration press release is reproduced below:

„In terms of the incidence of the legal norms by which the Supreme Council of National Defense is empowered to function, namely Article 119 of the Romanian Constitution and the provisions of Law No. 415/2002 on the organization and functioning of this state body, its prerogatives are summarized in powers that relate exclusively to the organization and unified coordination of activities related to the defense of the country and national security.

According to the provisions of Art. 3 para. (2) of Law no. 163/2021, the prerogatives of the Supreme Council of National Defense are exercised exclusively in the area of issuing the assent for authorization requests.

Pursuant to Art. 3 para. (1) of Law No. 163/2021 on the adoption of measures concerning information and communication infrastructures of national interest and conditions for the implementation of 5G, both LENOVO PC HK LIMITED and LENOVO GLOBAL TECHNOLOGY HK LIMITED have requested the Ministry of Research, Innovation and Digitalization to issue an authorization for the use of technologies, equipment and software in information and communication infrastructures of national interest and 5G networks.

The Ministry of Research, Innovation and Digitalization has forwarded the requests accompanied by the documentation packages of the two companies to the Supreme Council of National Defense. The assessment carried out at the level of the state institutions in charge of the field did not reveal any elements that could generate risks, threats and vulnerabilities to national security and defense of the country, with a view to obtaining the approval for the use of 5G infrastructure equipment by the mentioned entities.

Both LENOVO PC HK LIMITED and LENOVO GLOBAL TECHNOLOGY HK LIMITED are owned as a parent company, by Lenovo Group Limited, which is a holding and intellectual property investment company and operates as a limited liability company organized and incorporated under the laws of Hong Kong.

The Hong Kong Special Administrative Region’s legal system is based on the rule of law and the independence of the judiciary under the principle of „one country, two systems”.

Accordingly, and basing its decision on the analysis of the data included in the above assessment, the Supreme Council of National Defense has given its assent to LENOVO PC HK LIMITED and LENOVO GLOBAL TECHNOLOGY HK LIMITED.

According to Article 7 para. (1) of Law 163/2021 „if, after the approval pursuant to Art. 3 para. (2) risks, threats and vulnerabilities to the national security and defense of the country are identified, the authorization obtained shall be withdrawn by decision of the Prime Minister, upon request of the Supreme Council of National Defense. The Prime Minister’s decision shall be published in the Official Gazette of Romania”.

To date, the Supreme Council of National Defense has not been informed or notified by the state authorities about the identification of risks, threats or vulnerabilities to the national security and defense of the country, which would lead to the initiation of the procedure for the withdrawal of the authorization for the two LENOVO companies.”

Background

President Iohannis promulgated in 2021 the Law on the adoption of measures relating to information and communication infrastructures of national interest and the conditions for the implementation of 5G networks.

The law stipulates that communication providers will be able to use in 5G networks only technologies, equipment and software from manufacturers previously authorized by a decision of the Prime Minister, based on the assent of the CSAT.

The law gives the Supreme Council of National Defense (CSAT) the final say in authorizing projects and effectively excludes the Chinese company Huawei from equipment development operations.

In order to participate in the construction of 5G telecom networks in Romania, a company must meet several conditions: a) it is not under the control of a foreign government, in the absence of an independent legal system; b) it has a transparent shareholding structure; c) it has no history of unethical corporate conduct; d) it is subject to a legal system that imposes transparent corporate practices.

The law states that the CSAT’s assent „is issued also in relation to the obligations assumed by the Romanian state within the framework of cooperation at the level of international organisations of which Romania is a member, the European Union and bilateral strategic partnerships” – a reference to the strategic partnership with the US, which has taken a highly critical stance towards China in general and Huawei in particular.

The CSAT is an institution headed by Romania’s president and includes several ministers and heads of secret services. Decisions in the CSAT are taken unanimously. President Iohannis has repeatedly said that he wants Romania to build the 5G network with partners from NATO member states.

It should be recalled that the 5G law was preceded by a memorandum signed in Washington in August 2019 in the presence of Presidents Klaus Iohannis and Donald Trump.