ESPOO, Finland: Global technology companies must operate across both sides of the Atlantic to compete effectively, Nokia's chief executive said on January 29, as Europe debates how far it should go in backing domestic industry and reducing reliance on foreign suppliers.

Europe and the United States are deeply intertwined, and major tech firms cannot afford to depend on just one region, said Justin Hotard, chief executive of Nokia, in an interview with Reuters.

"Every single one of us cannot subsist on one continent or the other. We need both," Hotard said. "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 Swedish rival Ericsson have increasingly highlighted their roles as secure Western suppliers of telecoms network equipment, as governments reassess their exposure to Chinese vendors on national security grounds.

At the same time, the European Union is seeking to strengthen its domestic technological capabilities to reduce dependence on third countries, including the United States. For companies such as Nokia and Ericsson, which generate significant revenue on both sides of the Atlantic, that push creates a delicate balancing act.

"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 said.

The United States does not have a significant domestic supplier of telecom network equipment, leaving U.S. carriers reliant on Nokia, Ericsson, and South Korea's Samsung after Chinese vendors were barred for security concerns.

Earlier this month, the European Commission proposed phasing out so-called high-risk vendors from critical infrastructure, including 5G networks, a move that could further reduce the presence of China's Huawei in Europe.

A broader removal of Chinese equipment from European telecoms networks could create new opportunities for Nokia and Ericsson, following several years of subdued 5G investment across the region.

Hotard said he was encouraged by recent signals from Brussels but urged the EU to move faster and make existing recommendations binding for telecoms operators.

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