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EU plans ban on Chinese tech in critical infrastructure
The European Union is gearing up to phase out Chinese-made equipment from its critical infrastructure, targeting companies like Huawei and ZTE by barring them from telecommunications networks, solar energy systems, and security scanners. This move represents the European Commission's strongest stance yet on Chinese technology in vital European systems, converting prior voluntary guidelines into binding legal requirements that member states must enforce or face penalties.
The proposed measures build on a 2020 Commission recommendation to shun high-risk vendors in mobile networks, now set to become mandatory under law. Vice President Henna Virkkunen, overseeing technological sovereignty and security, has driven this shift from optional compliance to strict obligation. As of June 2025, only 10 of the EU's 27 member states had imposed restrictions on Chinese suppliers under the current voluntary framework, with Huawei and ZTE still commanding 30 to 35 percent of the European mobile infrastructure market, down just 5 to 10 percentage points since 2020.
Non-compliant countries could trigger formal infringement proceedings and financial sanctions. The Commission also plans to withhold funding from its Global Gateway program for third-country projects relying on Huawei technology. These steps aim to mitigate risks in essential sectors amid growing concerns over supply chain vulnerabilities.
The restrictions extend well beyond 5G telecoms. The EU's Economic Security Doctrine, released in December 2025, flagged Chinese solar inverters as a high-risk dependency, given that about 80 percent of new solar installations in Europe depend on them; Huawei alone held over 115 gigawatts of the European market in 2023. Security control equipment raises further alarms, with Chinese firm Nuctech, linked to China's state nuclear company, supplying cargo and vehicle scanners to major European ports, airports, and border posts. Lithuania has blocked Nuctech from airport scanner contracts following a national security review, while Belgium recently excluded it from a tender.
The Commission had slated a revised cybersecurity law for January 14 but delayed the announcement to January 20 amid disagreements among officials and member states on the scope of changes. Geopolitical tensions underpin the push: China has decried the EU's high-risk label for Huawei and ZTE as factually baseless and unlawful, even as Beijing restricts European telecom giants Nokia and Ericsson in its own networks.
Implementation varies across the bloc. Germany has committed to removing Huawei and ZTE components from 5G core networks by late 2026 and fully from access and transport networks by 2029. Finland plans to expand existing curbs, but Spain and Greece still permit Chinese suppliers. Telecom operators warn that stripping out Huawei gear could hike costs and delay network rollouts, as Chinese technology often undercuts Western alternatives in price.
