The European Union (EU) is preparing to enforce a phase-out of Chinese-made equipment from key sectors of critical infrastructure, including telecom networks and solar energy systems. This move specifically targets companies such as Huawei Technologies and ZTE Corporation, according to a report by the Financial Times.

Shift from Voluntary Guidelines to Mandatory Measures

Currently, the EU operates under a voluntary regime to restrict the use of high-risk vendors in critical infrastructure projects. However, under the proposed cybersecurity regulations, this framework is set to become mandatory for all member states. EU officials, who spoke anonymously to the Financial Times, emphasized that the move reflects increasing concerns over national security risks posed by foreign technology suppliers.

Some telecom operators in major EU markets, including Spain and Germany, have historically resisted such restrictions. The new proposal is expected to be formally presented on Tuesday, signaling a more uniform approach across the EU.

Phase-Out Timelines Will Be Sector-Specific

The timeline for phasing out Chinese suppliers will vary depending on the risk profile of each sector and the availability of alternative technologies. According to the report, the EU plans to consider both the cost implications and the readiness of other suppliers before enforcing the bans.

While Reuters was unable to independently verify the report, requests for comment were sent to the European Commission, Huawei, ZTE, and China’s Ministry of Commerce. None had responded at the time of publication.

Huawei’s European Investments Under Review

Huawei is reportedly evaluating the future of a recently completed manufacturing plant in eastern France. This review comes amid a hardening stance by European governments toward Chinese telecom equipment and the slow rollout of 5G networks across Europe.

Global Context: US Influence on EU Telecom Policy

The EU’s actions echo earlier measures taken by the United States, which banned approvals of new telecommunications equipment from Huawei and ZTE in 2022. Washington has also actively encouraged its European allies to adopt similar restrictions, citing security vulnerabilities associated with foreign equipment in critical infrastructure.

Implications for European Telecom and Energy Sectors

The proposed EU regulations are likely to have a major impact on telecom operators, solar energy providers, and other critical infrastructure companies that rely on Chinese technology. Analysts suggest that the move could accelerate investment in European suppliers and alternative global vendors, while also reshaping the competitive landscape of the telecom and renewable energy sectors.

Looking Ahead

EU member states are expected to discuss the proposal in the coming weeks, with detailed implementation plans tailored to the risk assessment of each sector. As Europe navigates the transition, companies and policymakers will need to balance security concerns, technological availability, and economic costs.