The European Union will propose to phase out Chinese-made equipment from critical infrastructure. The measure will affect telecommunications networks (including 5G networks), solar energy systems and security scanners, excluding companies such as Huawei and ZTE. The hypothesis, anticipated by Financial Timeshas a dual objective: on the one hand to reduce the EU’s dependence on companies based outside the old continent, and on the other to prevent sensitive information from being collected.
From voluntary to mandatory: what the tool provides
In the wake of the United States, which has long barred Huawei from its telecommunications networks, the European Union wants to make mandatory an already existing – and so far voluntary – regime to restrict high-risk providers from member countries’ networks. The orientation would mark a qualitative leap compared to the “5G Toolbox” launched in 2020, which has so far been non-binding and applied unevenly. That package already called for limiting or excluding high-risk vendors from networks’ cores and RANs. Brussels, in 2023, also explicitly indicated Huawei and ZTE as the riskiest entities, urging states to act quickly.
The proposal on cybersecurity should be formally presented on Tuesday 20 January. It was created with the aim of making the European approach to the problem more homogeneous, since the indications provided to date have often been ignored by several European countries which continue to rely on “high risk” suppliers.
What are the next steps? After the presentation of the proposal by the Commission, the measure will be discussed by the European Parliament and individual Member States. The legislative process is destined to encounter resistance and, so far, none of the parties involved have released official comments. If the measure is approved, European countries will also have to respect a precise timeline to eliminate Chinese suppliers from the EU’s critical infrastructure. The calendar will be calibrated on the risks associated with each company and on the economic consequences of the search for alternatives. In some industries, such as solar panels – more than 90% of which are produced in China – the process will require a significant commitment of resources.
After the news was disclosed, China called on the European Union not to undermine the confidence of Chinese companies in investing in Europe. In a comment sent to the press agency ReutersChina’s Foreign Ministry called the restriction on Chinese companies without a legal basis “shameless protectionism”, calling on the EU to ensure a fair, transparent and non-discriminatory trading environment for Chinese businesses.
Inhomogeneity in Europe: what is the situation in different countries
In Europe, different countries have adopted different strategies towards Chinese critical infrastructure suppliers. Sweden introduced a total ban, confirmed on appeal, while Germany opted for a gradual removal: Chinese components will have to leave the core of the networks by 2026, with a wider divestment by 2029. Berlin is also evaluating the use of public funds to help operators replace the equipment. Finland is tightening its grip further, Spain is maintaining a case-by-case approach, with recent stops on sensitive contracts, and Greece is targeting Ericsson for 5G, while maintaining Huawei equipment in legacy networks.
How Italy moves
In Italy, however, there is no explicit ban on Huawei or ZTE. The government has chosen a more flexible strategy based on a preventive control system, which allows case-by-case intervention when national strategic interests are at stake. Operators – including TIM, Vodafone, WindTre and Iliad – must notify every agreement with non-EU suppliers, which is evaluated by the Presidency of the Council together with the competent ministries and security services. Based on the risk to national security, the executive can authorize, modify or block the agreement. This approach has led over the years to targeted interventions on Huawei and ZTE supplies. In several cases, the contracts were approved, but with stringent technical constraints, such as the exclusion of Chinese suppliers from the most sensitive components of the networks.
