Brussels will propose a gradual phase-out of Chinese-made equipment in critical EU infrastructure, banning companies like Huawei and ZTE from accessing telecommunications networks, solar energy systems, and security scanners, citing officials, the Financial Times reports, writes UNN.
Details
The move comes as the EU reviews its security and technology policies, rethinking its reliance on major American tech companies as well as "high-risk" Chinese suppliers, which some officials believe could be used to collect sensitive data. The US has long banned Huawei from accessing its telecommunications networks.
The EU's cybersecurity proposal, expected to be unveiled on Tuesday, will make the existing voluntary regime of restricting or excluding "high-risk" suppliers from their networks mandatory for EU countries, sources said.
Previous recommendations have been unevenly implemented, with several European countries continuing to rely on such "high-risk" suppliers. Spain last summer signed a 12 million euro contract with Huawei to supply equipment for storing court-authorized wiretaps for law enforcement and intelligence agencies.
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"Fragmented national decisions have proven insufficient to achieve trust and coordination across the market," states a preliminary draft of the proposed Cybersecurity Act, which is still subject to change.
This follows intensified efforts by Brussels to curb China's involvement in critical European industries. The European Commission has launched investigations into train and wind turbine manufacturers and raided the European offices of security equipment company Nuctech in 2024.
The exact timing of the phase-out will depend on the assessed risk that a supplier poses to the bloc and a specific sector, officials said. The proposed timelines will also take into account costs and the availability of alternative suppliers.
For example, over 90 percent of solar panels installed in the EU are manufactured in China.
Some industry representatives also point to a lack of viable alternatives, given that the EU must simultaneously reduce its dependence on both Chinese and American suppliers. In particular, telecom operators have warned of the impact of a direct ban on consumer prices.
After the European Commission presents its proposal on Tuesday, the draft will be discussed with the European Parliament and EU countries. As member states are responsible for national security, the proposed timelines are likely to face resistance from some European capitals.
The proposal could cause problems among EU lobbying groups such as SolarPower Europe, a solar industry organization of which Huawei is a member due to its production of inverters used in solar panels, the publication writes.
Beijing said in November that the European Commission's attempts to phase out the use of Huawei and ZTE technologies would violate "market principles and fair competition rules."
"Facts have shown that in several countries, removing quality and secure equipment from Chinese telecommunications companies not only hinders their domestic technological development but also leads to large financial losses," a Chinese Foreign Ministry spokesman said at the time.
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