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The European Commission is exploring ways to compel EU member states to gradually remove Chinese companies Huawei Technologies Co. and ZTE Corp. from their telecommunications networks.
According to Bloomberg, citing people familiar with the matter, Commission Vice President Henna Virkkunen wants to turn the EU’s 2020 recommendation to exclude high-risk suppliers from mobile networks into a binding legal requirement.
Although national governments make their own infrastructure decisions, Virkkunen’s proposal would oblige member states to comply with the Commission’s security guidance. Countries that fail to follow the new rules could face financial penalties.
The EU is increasingly focused on the security risks posed by Chinese telecom equipment makers, fearing that control over critical national infrastructure by companies closely tied to Beijing could threaten national security interests.
Virkkunen is also examining ways to restrict Chinese suppliers in fixed-line networks, while the Commission considers using its Global Gateway funding program to discourage non-EU countries from relying on Huawei-linked projects.
China’s Foreign Ministry spokesperson Lin Jian condemned such moves, saying that “the forced removal of safe and high-quality Chinese equipment has not only delayed countries’ technological progress but also caused major economic losses.”
He added that “politicizing economic and trade issues under the guise of security will hinder technological and economic development.”
Concerns over Huawei and ZTE have resurfaced across Europe as Germany and Finland weigh tougher restrictions, while the UK and Sweden banned Chinese telecom gear years ago. In contrast, Spain and Greece still allow Huawei equipment in their networks.
Telecom operators are expected to push back against stricter limits, arguing that Huawei’s technology is cheaper and more advanced than many Western alternatives.
