EU Weighs Legal Measures to Phase Out Huawei and ZTE from Telecom Networks

Commission Vice President Henna Virkkunen is reportedly considering converting the EU’s 2020 recommendation discouraging the use of high-risk suppliers into a binding legal requirement, per Bloomberg. Although decisions on infrastructure are typically made at the national level, this proposal would require all EU countries to follow the Commission’s security framework.

The move reflects growing concerns within the EU over potential security risks associated with Chinese telecommunications companies, especially as relations between Brussels and Beijing become increasingly strained. Officials fear that reliance on firms with close ties to the Chinese government could threaten Europe’s national security and technological independence, according to Bloomberg.

Virkkunen’s plan also extends beyond mobile networks. She is said to be examining ways to reduce the use of Chinese suppliers in fixed-line broadband infrastructure, an area where the EU is rapidly expanding fiber-optic internet coverage.

Additionally, the Commission is reportedly assessing financial measures to discourage dependence on Huawei and ZTE in non-EU countries. According to Bloomberg, one proposal under review would make Global Gateway funding conditional on recipients avoiding Chinese-made equipment in EU-backed telecom projects.

“The security of our 5G networks is crucial for our economy,” Commission spokesperson Thomas Regnier said, while declining to comment on any forthcoming bans.

Related: US Lawmakers Sound Alarm Over China’s Access to Advanced Chip Tools

Huawei did not immediately issue a response, while China’s Foreign Ministry has previously condemned the EU’s labeling of Huawei and ZTE as high-risk vendors, calling the designation legally and factually unfounded.

Following Bloomberg’s report, shares of European telecom equipment makers rose, with Nokia’s American depositary receipts gaining up to 5% and Ericsson’s increasing by 3.7%.

According to Bloomberg, the renewed scrutiny comes as several European countries—including Germany and Finland—reconsider their approach to Chinese vendors. While nations such as the United Kingdom and Sweden have already banned Huawei, others, including Spain and Greece, continue to allow its equipment in their telecom networks. This uneven application of the EU’s security recommendations has sparked warnings from officials who argue that inconsistent standards could expose the bloc to greater risk.

The EU’s efforts to restrict Huawei trace back to the Trump administration, when the United States first barred the company and urged its allies to follow suit. The Commission later issued a “5G toolbox” advising countries to exclude high-risk suppliers from key infrastructure, though compliance was voluntary at the time.

Regnier reiterated that member states yet to adopt the toolbox should “effectively and quickly address the risks,” warning that delays leave the entire bloc exposed. Sweden’s decision to fully ban Huawei previously led to diplomatic pushback from Beijing, discouraging some other European nations from taking similar action.

Source: Bloomberg