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EU Set to Mandate Phase-Out of Chinese Telecom Equipment from Critical Infrastructure

The European Union is preparing to mandate the removal of Chinese-made equipment from critical infrastructure, targeting companies including Huawei and ZTE, according to a Financial Times report published Saturday.

The proposed cybersecurity measures would make it mandatory for EU member states to phase out high-risk vendors from telecommunications networks and solar energy systems, marking a significant shift from the bloc's current voluntary restriction regime, the report said, citing unnamed officials.
The proposal is expected to be presented on Tuesday, according to the report.
Several major EU markets have previously resisted implementing such restrictions. Telecommunications companies in Spain and Germany, two of the bloc's largest economies, have been among those reluctant to adopt voluntary measures against Chinese equipment vendors.

Under the proposed framework, phase-out timelines would vary based on the level of risk to the EU and the specific sector involved. The plan would also consider implementation costs and the availability of alternative suppliers, the report added.

The proposed mandatory restrictions come as Huawei has been reassessing its European operations. The company was reportedly considering the future of a recently completed manufacturing plant in eastern France in December, as some European governments have adopted harder stances on Chinese equipment and 5G deployment across the continent has proceeded slowly.

The United States implemented a ban on new telecommunications equipment approvals from Huawei and ZTE in 2022 and has consistently pressured European allies to adopt similar measures, citing national security concerns.