The European Union is preparing a major shift in its security and technology policy, with Brussels set to propose phasing out Chinese-made equipment from critical infrastructure across the bloc. The move would effectively bar companies such as Huawei and ZTE from sectors ranging from telecommunications networks to solar energy systems and airport security scanners, according to officials familiar with the plans. The proposal, first reported by the Financial Times, marks one of the most decisive steps yet by the EU to curb reliance on what it deems “high-risk” foreign suppliers.
The plan comes as European policymakers reassess long-standing dependencies not only on Chinese manufacturers but also on dominant US technology companies. Officials fear that equipment supplied by certain foreign vendors could be exploited to collect sensitive data or compromise national security. Washington has long taken a hard line on this issue, banning Huawei from US telecommunications networks, and Brussels now appears ready to move closer to that position.
At the heart of the initiative is a new EU cybersecurity proposal due to be presented on Tuesday. It is expected to transform an existing voluntary framework, under which member states were encouraged to restrict or exclude high-risk vendors, into a mandatory regime. Previous recommendations were applied unevenly, leaving gaps in the bloc’s overall security posture. Several EU countries have continued to rely on Chinese suppliers, despite warnings from Brussels, highlighting what officials see as a failure of fragmented national approaches.
Those concerns were underscored last summer when Spain signed a €12mn contract with Huawei to supply hardware used to store wiretaps authorised by judges for law enforcement and intelligence services. An earlier draft of the proposed Cybersecurity Act argued that such cases showed how “fragmented national solutions have proven insufficient to achieve marketwide trust and co-ordination,” language that reflects growing frustration inside the Commission.
The proposal also fits into a broader clampdown on Chinese participation in sensitive European industries. In recent years, the Commission has launched investigations into Chinese train manufacturers and wind turbine makers, and in 2024 it raided the European offices of Nuctech, a Chinese security equipment company. Together, these actions signal a more assertive stance towards economic security and strategic autonomy.
Officials say the timeline for phasing out Chinese equipment would vary depending on the level of risk posed by individual vendors and the sector involved. Costs and the availability of alternative suppliers would also be taken into account, a key issue given the EU’s deep integration with Chinese manufacturing. More than 90 per cent of solar panels installed in the bloc are made in China, making a rapid disengagement particularly challenging for the renewable energy sector.
Industry figures warn that viable alternatives are often limited, especially as the EU seeks simultaneously to reduce dependence on both Chinese and US suppliers. Telecom operators have cautioned that an outright ban could drive up consumer prices, as replacing existing equipment would require substantial investment. The solar industry also faces internal tensions, with lobby groups such as SolarPower Europe likely to be tested by the proposal, given that Huawei is a member through its production of solar inverters.
Once the Commission presents its plan, the draft law will enter negotiations with the European parliament and EU member states. Because national security remains primarily the responsibility of individual countries, the proposed timelines are expected to meet resistance from some European capitals reluctant to shoulder the economic and political costs of a rapid phaseout.
The European Commission declined to comment ahead of the proposal’s publication, and Huawei did not respond immediately to a request for comment. Beijing, however, has already signalled its opposition. In November, China’s foreign ministry warned that efforts to exclude Huawei and ZTE would violate market principles and fair competition, arguing that countries removing Chinese telecom equipment had suffered financial losses and setbacks to their technological development. As Brussels pushes forward, the confrontation highlights how technology, security and geopolitics are becoming increasingly inseparable in Europe’s policy choices.
