The European Union said it plans to phase out telecom equipment supplied by companies from “high risk” countries from critical infrastructure, including high-speed telecom networks, within three years. The European Commission’s proposals were released as part of a tightening of cybersecurity rules for the bloc.
The draft legislation would require the phaseout, the EU said, rather than leaving cybersecurity steps to voluntary or uneven adoption across member states. The EU’s plan comes amid broader concerns about vulnerability linked to the dominance of Chinese high-tech manufacturing and U.S. Big Tech services in parts of the technology stack.
Under the executive commission’s draft, telecom equipment from so-called high risk suppliers in third countries would be phased out within three years. The proposals do not name specific countries or companies, but the term “high risk” has previously been used in EU discussions to refer to countries such as China, where Huawei is based.
The European move is widely seen as targeting Chinese companies including Huawei and ZTE. AP reported that Huawei is the world’s biggest maker of networking equipment and that it has long been banned from the United States.
The commission said the shift to mandatory rules addresses past implementation problems. EU cybersecurity measures for 5G, the report said, had previously been recommended or voluntary, resulting in uneven application across the bloc—some countries buying Chinese gear while others shunned it.
The proposed restrictions would also extend beyond telecom networks. The draft covers equipment in other sectors such as security scanners used at border checkpoints, water supply systems, and health and medical devices.
In response to the proposals, Huawei said it is a “legally operating company in Europe” and “reserves the right to safeguard its ‘legitimate interests.’” The company also argued that a legislative proposal limiting or excluding non-EU suppliers based on country of origin, rather than factual evidence and technical standards, violates EU legal principles of fairness, non-discrimination, and proportionality, as well as WTO obligations.
European Commission Vice President Henna Virkkunen told lawmakers at the European Parliament in Strasbourg, France, that the proposal is designed to “protect[] EU citizens and businesses by securing the ICT supply chains that support the critical sectors of our economy and society.” The European Parliament will need to approve the proposals before they can take effect.