Europe Plans to Follow U.S. Lead: Huawei and ZTE Could Be Banned from Critical Infrastructure

The European Union (EU) is planning to phase out Chinese equipment from its critical infrastructure over security concerns, potentially banning the use of devices from companies like Huawei and ZTE. This move could deliver a significant blow to China’s telecom and solar energy exports, while also delaying the launch of 6G technology in Europe and increasing costs.

Security Concerns Drive the Decision
The EU is re-evaluating its technology and security policies, aiming to reduce reliance on high-risk suppliers from China. According to reports in the Financial Times, some EU officials are concerned that Chinese suppliers could steal sensitive data from European networks and infrastructure. The U.S. had previously labeled Huawei and ZTE as national security threats, banning their equipment from government networks. Europe is now taking similar steps.

High-Risk Vendors to Be Excluded
Under the EU’s proposed cybersecurity regulations, member states would be required to exclude high-risk vendors from their networks. While recommendations to this effect were made previously, they were not strictly enforced. Many European countries still rely on such vendors. For instance, last year Spain signed a €12 million contract with Huawei, allowing the company to provide hardware approved for wiretaps and law enforcement monitoring.

Reducing China’s Role in European Industries
The proposal forms part of the EU’s broader strategy to reduce China’s participation in European industries. The European Commission has already examined train manufacturers and wind turbine companies, and in 2024 conducted raids on the European offices of the security equipment company Nuctech.

Timeline and Impact on Sectors
Officials stated that the timeline for phasing out Chinese suppliers would depend on the level of risk posed by each vendor and the sector in which they operate. Cost considerations and the availability of alternative suppliers will also factor in. Notably, over 90% of solar panels installed in the EU are manufactured in China.

6G Launch Could Be Delayed
Telecom operators have warned that a direct ban on Chinese equipment could impact consumer prices and delay the upcoming rollout of 6G networks.

Potential Resistance from Member States
Once the Commission presents its proposal, the draft law will be negotiated among the European Parliament and member states. Since national security is primarily the responsibility of individual countries, some may oppose the proposed timelines.

U.S. Precedent
This is not the first instance of such measures. In 2022, the U.S. Federal Communications Commission (FCC) banned the sale and import of telecom and video surveillance equipment from Huawei, ZTE, and other Chinese companies, citing national security risks.