The European Union (EU) is preparing to take more concrete steps to gradually remove the equipment of China-based technology companies Huawei and ZTE from networks in order to increase the security of the telecommunications infrastructure across the continent. According to Bloomberg, based on sources familiar with the matter, the European Commission aims to turn the recommendation it presented to member states in 2020 to restrict the use of equipment from “high-risk suppliers” into a binding legal regulation this time.
European Commission Vice President Henna Virkkunen, the name behind this proposal, aims to reduce security vulnerabilities, especially in 5G and next generation networks. In addition, it also brings up limiting the role of Chinese suppliers in fiber internet projects. If the regulation in question comes into effect, EU countries will have to comply with the Commission’s security guidelines. Otherwise, violation procedures and financial sanctions may come to the fore.
Increasing restrictions on Huawei and other Chinese companies on 5G and fiber networks
Although the Commission’s recommendation dated 2020 has been taken into account in many countries, differences are noticeable in practice. In order to prevent this situation, the Commission aims to force member states to act with one voice by imposing a legal obligation. Within the scope of Henna Virkkunen’s proposal, it is aimed to prevent Chinese companies from taking part as hardware providers, especially in the process of accelerating the broadband internet infrastructure. Huawei and ZTE did not respond to Bloomberg’s requests for comment.
The EU’s initiative in this direction has been considered in recent years as part of a broader approach to limiting China’s influence in critical infrastructures. In particular, Germany’s statement that it planned to ban the use of some basic components of Chinese companies such as Huawei and ZTE by 2026 attracted attention. Similarly, Finland is working to ban the use of Huawei equipment in 5G infrastructures on a larger scale.
However, the measures taken against Chinese technology companies are not limited to the EU alone. A series of US-led initiatives in recent years have encouraged allied countries in Europe to impose similar restrictions. Countries such as the UK and Sweden have either completely banned or severely limited the use of Huawei products in their telecommunications networks due to security concerns.
The EU’s possible new regulation can be expanded to cover not only 5G networks but also fiber optic internet infrastructure. This could seriously affect the market share of Chinese technology companies in Europe in the long run. On the other hand, collaborations with domestic or non-EU alternative manufacturers in Europe are expected to gain momentum in the coming period.