EU Moves to Force Phase-Out of Huawei, ZTE Equipment from Critical Infrastructure
EU to Phase Out Huawei, ZTE from Critical Infrastructure

EU Takes Hard Stance on Chinese Tech in Critical Infrastructure

The European Union is preparing to implement mandatory restrictions on Chinese telecommunications equipment in critical infrastructure sectors. According to a Financial Times report citing official sources, this move specifically targets major Chinese firms Huawei and ZTE.

New Cybersecurity Proposal Targets High-Risk Vendors

The EU's new cybersecurity proposal, scheduled for presentation on January 20, 2026, will require member states to phase out equipment from high-risk vendors. Currently, such restrictions remain voluntary across the bloc. The proposal marks a significant policy shift toward mandatory compliance.

Critical infrastructure sectors affected include telecommunications networks and solar energy systems. These areas represent vital components of Europe's digital and energy security framework.

Implementation Timeline and Considerations

Phase-out timelines will vary based on several key factors:

  • The specific risks posed to EU security interests
  • The characteristics of each affected sector
  • Cost implications for European operators
  • Availability of alternative equipment suppliers

This flexible approach acknowledges the practical challenges of replacing existing infrastructure while maintaining security priorities.

Resistance from Major Telecom Markets

Some European telecom operators have previously resisted voluntary restrictions on Chinese equipment. Germany and Spain, which host substantial telecom markets, have seen particular pushback from industry players concerned about implementation costs and technical compatibility.

The new mandatory requirements would override this resistance, compelling compliance across all member states regardless of previous voluntary participation.

Broader Context of Global Tech Restrictions

This EU initiative follows similar actions by other Western nations. The United States banned approvals of new telecommunications equipment from Huawei and ZTE in 2022. American officials have actively encouraged European allies to adopt comparable restrictions on Chinese technology.

The geopolitical landscape surrounding 5G deployment has grown increasingly complex. Some European governments have hardened their stance on Chinese equipment amid broader security concerns. This has contributed to slower 5G rollouts across parts of Europe as operators navigate changing regulatory environments.

Corporate Responses and Future Implications

Huawei has been evaluating the future of its recently completed manufacturing plant in eastern France. This reassessment comes amid growing regulatory uncertainty across European markets. Neither Huawei nor ZTE immediately responded to requests for comment regarding the EU's proposed measures.

The European Commission and China's commerce ministry also declined immediate comment on the reported proposal. Reuters noted it could not immediately verify all details of the Financial Times report.

This development represents a significant escalation in Europe's approach to cybersecurity and technological sovereignty. The mandatory phase-out, if implemented, would reshape supply chains for critical infrastructure across the continent.