Europe and the United States are co-dependent and large technology companies cannot rely on a single continent, Nokia CEO Justin Hotard said on Thursday, as the European Union weighs stronger support for homegrown industry.

"Every single one of us cannot subsist on one continent or the other. We need both," Hotard told Reuters in an interview. "Particularly in technology, where the window and the right to win is dictated by that technology cycle, it's really critical that you have as big a market access as possible."

Nokia and its Swedish rival Ericsson ERICb.ST have been touting their credentials as secure Western suppliers of network equipment while governments reassess their exposure to Chinese suppliers.

At the same time, Europe is striving to bolster domestic technological capacity to reduce reliance on third countries, including the U.S.. For Nokia and Ericsson, this creates a challenging balance as both companies generate substantial revenue from both sides of the Atlantic.

"Every single one in Europe and the U.S. that is of scale is dependent on the European and U.S. market for scale. If you just do the analysis, there's a significant codependence," Hotard added.

The U.S. lacks a major domestic supplier of telecoms gear, leaving carriers there reliant on Nokia, Ericsson and South Korea’s Samsung 005930.KS after Chinese vendors were banned for national security reasons.

Earlier this month, the European Commission proposed phasing out so-called high-risk vendors from critical sectors, including 5G networks, a move that may further curb Huawei's share in Europe.

A wider removal of Chinese equipment from European telecom networks could unlock new opportunities for Nokia and Ericsson, following several years of lacklustre 5G investments across the region.

Hotard expressed optimism over recent developments in Brussels but urged the EU to accelerate its efforts and make existing recommendations for operators mandatory.

"Europe needs to support its business champions. That's not just in tech, but in other areas," he said.

Nokia over the years: from mobile phone powerhouse to AI in telecoms https://www.reuters.com/graphics/NOKIA-RESULTS/gdpzjlyldpw/chart.png

-Gianluca Lo Nostro and Agnieszka Olenska/Reuters