"Those who see China as a systemic rival or a potentially hostile state have got it all wrong: they have chosen the wrong target and they are heading in the wrong direction," according to China's Ambassador to the UK, Liu Xiaoming.

In a webinar speech a day after the UK banned Chinese telecoms giant Huawei from its 5G network, Ambassador Liu said: "Win-win cooperation has been the main theme," in the 45 years of China-EU diplomatic relations.

Now, there are new challenges brought by the COVID-19 pandemic that need to be solved, he said. 

"By this I mean the misgivings and doubts of some politicians in Europe who see China as a systemic rival, regard China as a potentially hostile state and believe there will be no going back to business as usual with China." 

He insisted "there is no geopolitical discord or conflict in fundamental interests; there is more cooperation than rivalry, more consensus than differences." 

But he said the Huawei decision had damaged trust between the UK government and Chinese businesses and that the way Huawei is treated will be watched very closely by other Chinese companies. 

"You don't need the government to say anything; the businesses, they can make their own conclusion." 

The UK's decision will make it illegal for UK telecoms operators to buy Huawei's 5G equipment from the start of 2021. UK telecoms companies have been some of the most vocal supporters of Huawei's role in the country's 5G network recently.

BT Group, which has worked with the Shenzhen-based firm on its fixed-line services and through its mobile network EE, said: "Now we have clarity on the timing, it is estimated that these costs can be absorbed within BT's initial estimated implementation cost of $628 million."

One crucial aspect of the decision is the 2027 deadline for existing Huawei 5G infrastructure to be removed from the UK's network.

That has angered some lawmakers in Prime Minister Boris Johnson's Conservative Party, who wanted quicker action, suggesting 2023 as a possible date for removal.

The longer timeline is good news for the nation's telecoms companies as it affords them more time to rip out affected kit.

Commenting on the move, BT CEO Philip Jansen, said: "Clearly this decision has logistical and cost implications for communications providers in the UK market. 

"However, we believe the timescales outlined will allow us to make these changes without impacting on the coverage or resilience of our existing networks."

Finding alternative providers could be a bigger challenge.

Huawei's dominance in the sector is unrivaled and its technology is generally considered more advanced and cost-effective than main rivals Ericsson and Nokia.

But this decision will be an opportunity for the two European tech giants, which may benefit from new investment from Western powers shunning Huawei.

There's also the politics to consider.

Ambassador Liu said the decision by Boris Johnson's government meant "it has become questionable whether the UK can provide an open, fair and non-discriminatory business environment for companies from other countries."

On Wednesday, the UK health secretary, Matt Hancock, said the decision was purely "technical" and that he hoped it didn't impact wider relations.

But the economic importance of China to the UK has ramped up in the past decade. In 2018, total trade between the two was worth more than $85 billion, making the Asian country Britain's fifth largest trading partner.

More than 120,000 Chinese students study at UK universities and billions of dollars worth of Chinese investment spans strategic sectors from automotive to aviation and finance.

A new report by think tank Cambridge Econometrics, which was commissioned by the China-British Business Council, said UK links with China support more than 100,000 British jobs.

Responding to the ban on Wednesday, the Foreign Ministry in Beijing said it is reviewing the decision and will take all measures to "safeguard its interests."

There will be many concerned businesses and individuals on both sides watching what happens next.

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