The European Union is reportedly planning to propose phasing out Chinese-made equipment from critical infrastructure in the region. If the proposal is accepted, it will bar companies like Huawei and ZTE from telecommunications networks, solar energy systems, and security scanners across the EU, a Financial Times report claimed, citing officials. The move mirrors similar actions taken by the US in 2022, when the Federal Communications Commission (FCC) banned the sale and import of new telecommunications and video surveillance equipment from Huawei, ZTE, and other Chinese firms. The US ban cited unacceptable national security risks and the fulfilment of requirements from the Secure Equipment Act of 2021 to prevent new devices from these companies from entering the American market. Brussels’ potential action comes as the EU revamps its security and technology policy by reconsidering its dependence on both major US tech companies and Chinese “high-risk” suppliers. According to the FT report, some EU officials are worried that these Chinese suppliers could be used to collect sensitive data from European networks and infrastructure.Earlier, the US designated Huawei and ZTE as national security threats and restricted their use in government-funded networks before implementing the broader 2022 ban. Europe now appears ready to follow a similar path in restricting Chinese technology companies from its critical systems.
What is the EU’s cybersecurity proposal and what changes it may bring
The report cited people familiar with the matter to say that the EU’s cybersecurity proposal, to be presented soon, is expected to make the existing voluntary system that restricts or excludes high-risk vendors from their networks mandatory for EU countries. Previous recommendations have reportedly been unevenly followed, with several European countries continuing to rely on such “high-risk” suppliers. Last year, Spain signed a €12 million contract with Huawei to provide the hardware to store wiretaps authorised by judges for law enforcement and intelligence services.“Fragmented national solutions have proven insufficient to achieve marketwide trust and coordination,” said an earlier draft of the proposed Cybersecurity Act, which is still subject to change.The proposal follows increased EU efforts to curb Chinese participation in critical European industries. The European Commission has launched investigations into train manufacturers and wind turbine makers, and in 2024, raided the European offices of security equipment company Nuctech.The exact timeline for the phaseout would depend on the assessed risk posed by the vendor to the EU and the specific sector, the officials said. The proposed timelines would also take costs and the availability of alternative suppliers into account. For example, more than 90% of solar panels installed in the EU are made in China.Some industry officials also point to the lack of viable alternatives, given that the EU must simultaneously reduce its reliance on both Chinese and US suppliers. However, telecom operators in particular have warned about the impact on consumer prices of a direct ban.After the commission presents its proposal, the draft law will be negotiated with the European Parliament and the EU member states. As member states are responsible for national security, the proposed timelines are likely to face resistance from some European capitals.The proposal could pose challenges for EU lobby groups, such as SolarPower Europe, the solar industry body of which Huawei is a member, due to its production of inverters used in solar panels, the report notes.
What China said about EU’s plans to ban Huawei and ZTE products for critical infrastructure
In November 2025, China said that the European Commission’s 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 at that time.
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