Signaling a tougher cybersecurity stance, the European Union is preparing to move toward a mandatory phase-out of Chinese-made equipment from critical infrastructure, a step that could significantly impact companies such as Huawei Technologies and ZTE Corporation.
According to officials familiar with the matter, the EU is set to present a new cybersecurity proposal on January 20 that would require restrictions on so-called high-risk vendors. Until now, such measures across the bloc have largely been voluntary. The proposed rules would apply to sensitive sectors including telecom networks and solar energy systems.
Some large telecom markets, including Germany and Spain, have previously resisted strict implementation of restrictions on Chinese vendors. Under the new approach, timelines for any phase-out would vary by sector and depend on the level of risk involved. Officials said the EU would also consider the cost of replacing equipment and the availability of alternative suppliers.
The move reflects a broader hardening of attitudes toward Chinese technology providers in Western markets. Huawei, in particular, is reportedly reassessing the future of its recently completed manufacturing facility in eastern France. This comes amid a slower-than-expected rollout of 5G in Europe and growing government concerns around security and supply chain resilience.
The United States took a similar step earlier. In 2022, Washington banned approvals of new telecommunications equipment from Huawei and ZTE as part of its broader trade and technology dispute with China. The US has since encouraged its European partners to adopt comparable measures.
In November 2025, another report indicated that the European Commission was exploring ways to compel member states to remove Huawei and ZTE equipment from telecom networks. Several countries have already acted independently. The United Kingdom and Sweden, for instance, banned Chinese telecom vendors from their networks several years ago.
European Commission Vice President Henna Virkkunen is said to be reviewing options to limit the use of Chinese suppliers even in fixed-line networks. This review comes as EU member states continue to invest in expanding high-speed internet access while balancing security concerns.
If implemented, the proposal would mark a major shift in the EU’s approach, turning guidance into binding policy and reshaping the region’s telecom and energy infrastructure landscape.
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