Brussels Plans EU-Wide Ban on Huawei and ZTE

The European Commission (EC) is planning to push EU member states to gradually remove Chinese telecom equipment makers Huawei Technologies and ZTE Corp. from their networks. The move aims to strengthen the security of Europe’s critical telecom infrastructure.

Currently, the EC’s 2020 recommendation advises member states to avoid suppliers considered “high security risks.” Brussels now wants to turn this recommendation into a legally binding obligation. If a member state fails to comply, it could face infringement proceedings and financial penalties.

The focus is not only on mobile networks but also on fixed telecom networks, as Brussels is concerned about Europe’s dependence on Chinese suppliers for critical infrastructure. The EC is also considering restricting funding under its Global Gateway programme for third countries that use Huawei equipment in EU-supported projects.

Huawei has yet to respond to the report, while China has previously criticized labeling Huawei and ZTE as “high risk,” arguing that such claims are not legally or factually justified.

The news has reignited debates across Europe. Countries like Germany and Finland are considering stricter rules, whereas Spain and Greece still allow Chinese suppliers. The UK and Sweden have already imposed full bans.

However, implementing a ban may be complicated because decisions on telecom infrastructure largely fall under national governments’ authority. For telecom companies, replacing Chinese equipment could be costly, even though Chinese technology is often considered cheaper and advanced.

The financial market reacted positively to the news. Finland’s Nokia Corporation shares rose more than 5%, while Sweden’s Ericsson AB shares increased by about 4%, signaling opportunities for Western telecom suppliers if Chinese gear is restricted