The European Union is set to strengthen its position on Chinese-made equipment by proposing a mandatory phase-out from crucial infrastructure like telecom networks and solar energy systems. This move could have a direct impact on Chinese firms such as Huawei and ZTE, currently utilized by various European telecom operators, as per a report by the Financial Times.
Currently, the EU operates under a voluntary framework to limit high-risk vendors, but an upcoming cybersecurity plan is expected to enforce these restrictions across all member states. The new proposal, likely to be unveiled soon, would necessitate EU nations to gradually eliminate Chinese equipment from sensitive infrastructure.
The timeline for this phase-out would differ based on the risk level to the EU and the specific sector involved. Considerations would include factors like equipment replacement costs and the availability of alternative suppliers, the report highlighted.
Some telecom companies in major European markets like Spain and Germany have previously hesitated to impose strict restrictions on Chinese vendors due to cost implications and reliance on existing infrastructure. The proposed changes could compel these companies to expedite their shift towards non-Chinese suppliers.
While there have been no official statements at the time of reporting, the European Commission, China’s commerce ministry, Huawei, and ZTE have not yet responded. If implemented, the EU’s plan would signify a significant change in Europe’s cybersecurity and critical infrastructure approach, potentially reshaping the telecom and renewable energy supply chains in the region.
In a separate report, the Financial Times mentioned that the European Union is contemplating imposing 93 billion euros ($107.68 billion) in tariffs on Washington or restricting American companies from the EU market in retaliation to US President Donald Trump’s tariff threats concerning Greenland.
