The European Union announced on Tuesday its intention to phase out equipment provided by companies based in “high-risk” countries from critical infrastructure, including high-speed telecommunications networks. This initiative primarily aims to address concerns about Chinese companies, notably Huawei and ZTE.
The proposed measures to enhance cybersecurity are being introduced in response to growing concerns that the 27 member states of the EU are susceptible to the influence of Chinese high-tech manufacturing and to the dominance of US technology services. The draft legislation released by the EU’s executive commission outlines a three-year timeline for phasing out telecom equipment supplied by identified high-risk suppliers from third countries.
While the proposals do not explicitly name any countries or companies, the term “high-risk” has been previously associated with nations such as China, which is home to Huawei, the world’s largest manufacturer of networking equipment. This company has faced longstanding bans in the United States.
In 2023, the EU executive body stated that EU member states have valid grounds to restrict or exclude Huawei and ZTE due to the heightened risks these companies pose. Notably, prior EU recommendations on 5G cybersecurity were not mandatory, leading to varied implementation across member states. Consequently, some countries continued to procure Chinese equipment while others opted to refrain from such purchases.
The new regulations will establish mandatory cybersecurity measures. In response to these developments, Huawei has asserted that, as a legally operating entity within Europe, it intends to uphold 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 basic legal principles of fairness, non-discrimination, and proportionality, as well as its WTO obligations,” the company said in a statement.
The proposed restrictions extend to equipment across multiple sectors, including security scanners utilised at border checkpoints, water supply systems, and health and medical devices.
“Our proposal is about protecting EU citizens and businesses by securing the ICT supply chains that support the critical sectors of our economy and society,” European Commission Vice President Henna Virkkunen told lawmakers at the European Parliament in Strasbourg, France, which will need to approve the proposals.
This article used information from The Associated Press.
