In a major setback for China, the European Union (EU) is reportedly mulling to remove Chinese-made equipment from its telecommunication infrastructure, and might impose a ban on purchasing equipment from Chinese telecom giants like ZTE and Huawei.
Why EU proposes ban on Chinese equipment?
As per a Financial Times report, the EU is working on revamping its security and technology policy, and is likely to take steps to reduce dependence large US tech companies and high-risk Chinese suppliers, which would prevent Chinese firms like Huawei and ZTE from selling their telecom equipment, solar power systems, and security scanners to European clients.
EU’s move stems from concerns about data theft as several EU officials fear Chinese suppliers could harvest sensitive data from European networks and critical government infrastructure.
How ban will impact EU nations?
Under the new cybersecurity proposal, EU countries, many of which are reliant of high-risk vendors, will be required to exclude these suppliers from their networks.
Last year, Spain signed a 12 million euro bond with Huawei, under which the Chinese firm will supply hardware to store wiretaps (recordings of conversations) approved by law enforcement and intelligence services.
According to the report, the proposal is part of the EU’s efforts to reduce China’s involvement in European industries.
Previously, the European Commission has investigated train and wind turbine manufacturers, and in 2024, raids were conducted on European offices of Nuctech– a Chinese security inspection products company, which is partially state-owned.
Will EU remove Chinese equipment from networks?
Notably, the EU does not plan to remove all Chinese-made equipment in a single swipe, instead the timeframe for phasing out equipment would depend on the risk the supplier poses to the EU and the specific sector it operates in.
As per EU officials, the proposed timeframe would take into account costs as well as the availability of alternative suppliers. For example, more than 90% of solar panels installed in the EU are manufactured in China.
Proposed timelines may also face opposition from some European countries as national security is the domain of EU Member States, they said.
What impact would the ban have on EU’s telecom sector?
Meanwhile, telecom operators in the EU have warned about the impact of an outright ban on Chinese equipment, stating that it would result in a significant hike in consumer prices, and also delay the planned launch of 6G services.
The United States has already banned the use of Huawei and ZTE equipment in government networks, citing threat to national security.
In 2022, US Federal Communications Commission (FCC) banned the sale and import of telecom and video surveillance equipment from Huawei, ZTE, and other Chinese companies, citing threat to national security.
