EU plans phase out of high risk telecom suppliers, in proposals seen as targeting China

LONDON — The European Union said Tuesday it plans to gradually withdraw equipment supplied by companies based in “high-risk” countries from critical infrastructure such as broadband telecommunications networks, a move seen as targeting Chinese companies including Huawei and ZTE.

Brussels’ proposed measures to boost cybersecurity come amid growing concerns that the bloc’s 27 member countries are vulnerable to both the dominance of China’s high-tech manufacturing industry and U.S. big-tech services.

According to the draft law published by the EU executive commission, telecommunications equipment from so-called high-risk suppliers in third countries would be phased out within three years.

The proposals do not mention any country or company by name, but the term “high risk” has previously been used to refer to countries like China, home to tech giant Huawei. The company is the world’s largest manufacturer of networking equipment, but it has long been banned in the United States.

The bloc’s executive said in 2023 that EU countries were justified in restricting or excluding Huawei and ZTE, another Chinese technology company sanctioned by the United States, because they posed higher risks. But previous EU measures on 5G cybersecurity were recommended or voluntary, leading to uneven enforcement across the bloc, with some countries purchasing Chinese hardware while others avoided it.

Under the new rules, cybersecurity measures would become mandatory.

Huawei said that as a “legally operating company in Europe”, it reserves the right to safeguard its “legitimate interests”.

“A legislative proposal to limit or exclude non-EU suppliers based on country of origin, rather than factual evidence and technical standards, violates the EU’s fundamental legal principles of fairness, non-discrimination and proportionality, as well as its WTO obligations,” the company said in a statement.

The proposed restrictions also cover equipment in other sectors, such as security scanners used at border checkpoints, water supply systems and sanitary and medical devices.

“Our proposal aims to protect EU citizens and businesses by securing ICT supply chains that support critical sectors of our economy and society,” European Commission Vice President Henna Virkkunen told lawmakers at the European Parliament in Strasbourg, France, who will have to approve the proposals.