The European Commission is investigating ways to oblige EU member states to gradually remove Huawei Technologies and ZTE Corp. from their telecommunications networks.
This was reported by Bloomberg, citing sources familiar with the matter. Vice-President Henna Virkkunen, who is responsible for Technological Sovereignty, Security, and Democracy within the European Commission, wants to turn the 2020 recommendation to avoid suppliers with high security risks into a legally binding obligation. This would require member states to follow the Commission’s security guidelines. Those who fail to do so could face infringement proceedings and financial penalties.
Although decisions on infrastructure formally lie with national governments, concern is growing in Brussels about dependence on Chinese suppliers in critical networks. The Commission is also exploring ways to limit the use of Chinese equipment in fixed networks, while countries are trying to accelerate the deployment of fiber-optic infrastructure.
In addition, it is considering refusing funding through the Global Gateway program to third countries that use Huawei technology in EU-supported projects. According to a spokesperson, the security of 5G networks is of great economic importance, but he did not want to preempt a possible ban.
Debate over Huawei flares up
Huawei has not yet responded to the report. China has previously criticized the classification of Huawei and ZTE as risky, which Beijing says is not based on facts or legislation. The debate about Huawei is flaring up again in several European countries. Germany and Finland are considering stricter rules, while Spain and Greece continue to allow Chinese suppliers. Countries such as the United Kingdom and Sweden have already banned them completely.
Any obligation from Brussels is likely to provoke political resistance, as member states traditionally decide on their own national infrastructure. Telecom companies are also concerned, as Huawei technology is generally considered cheaper and more advanced than Western alternatives. The issue came to the fore earlier during Donald Trump’s presidency, when the United States pressured Europe to ban Huawei.
Less than a year ago, Huawei was optimistic about its position in Europe. At the Huawei Connect conference in Paris in 2024, the company emphasized its desire to support European companies with customized solutions for networks, data storage, and security. CEO Michael Ma spoke about the opportunities offered by artificial intelligence and said that Huawei wants to contribute to Europe’s digital transformation, including through collaboration with local partners across sectors such as education, healthcare, and government. Huawei also stated that it complies with all European regulations and that independent audits confirm that it adheres to high security standards.
The share price of Finland’s Nokia rose by more than 5% after the Bloomberg report, while Sweden’s Ericsson gained nearly 4%. The renewed focus on the role of Chinese technology companies in European networks seems to be gaining momentum again, at a time when Huawei had just tried to restore its reputation in Europe.