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Brussels is to propose phasing out Chinese-made equipment from critical infrastructure in the EU, barring companies such as Huawei and ZTE from telecommunications networks, solar energy systems and security scanners, according to officials.
The move comes as the EU revamps its security and tech policy by rethinking its dependence on big US tech companies as well as Chinese “high-risk” suppliers, which some officials fear could be used to collect sensitive data. The US has long banned Huawei from its telecommunications networks.
The EU’s cyber security proposal, which will be presented on Tuesday, is expected to make an existing voluntary regime to restrict or exclude high-risk vendors from their networks mandatory for EU countries, the people said.
Previous recommendations have been unevenly implemented, with several European countries continuing to rely on such “high-risk” suppliers. Spain last summer signed a €12mn contract with Huawei for it to provide the hardware to store wiretaps authorised by judges for law enforcement and the intelligence services.
“Fragmented national solutions have proven insufficient to achieve marketwide trust and co-ordination,” said an earlier draft of the proposed Cybersecurity Act, which is still subject to change.
It follows increased efforts by Brussels to crack down on Chinese participation in critical European industries. The European Commission has launched probes into train manufacturers and wind turbine makers and raided the European offices of security equipment company Nuctech in 2024.
The exact timeline for the phaseout would depend on the assessed risk the vendor poses to the bloc and the specific sector, the officials said. The proposed timelines would also take costs and the availability of alternative suppliers into account.
More than 90 per cent of solar panels installed in the EU are made in China, for example.
Some industry officials also point to the lack of viable alternatives, given that the EU has to decrease its dependency on both Chinese and US suppliers at the same time. Telecom operators in particular have warned about the impact on consumer prices of a direct ban.
After the commission presents its proposal on Tuesday, the draft law will be negotiated with the European parliament and EU countries. As member states are in charge of national security, the proposed timelines are likely to face resistance from some European capitals.
The proposal could cause challenges among EU lobby groups such as SolarPower Europe, the solar industry body, of which Huawei is a member, thanks to its production of inverters that are used in solar panels.
The European Commission declined to comment. Huawei did not immediately reply to a request for comment.
Beijing said in November that a Commission push to phase out the use of Huawei and ZTE technology would violate “market principles and the rules of fair competition”.
“Facts have demonstrated that in a handful of countries, the removal of Chinese telecom companies’ quality and secure equipment not only handicaps their domestic technological development but also results in heavy financial losses,” a Chinese foreign ministry spokesperson said then.
Additional reporting by Alice Hancock in Brussels
