The European Union (EU) is pushing to legislate a de facto phaseout of Chinese-made equipment from member states' communications networks.
According to Bloomberg on the 10th (local time), the European Commission is discussing converting the recommendation released five years ago to "stop using high-risk suppliers" into a legally binding regulation. The plan is being led by Executive Vice President Henna Virkkunen, who oversees technology sovereignty, security and democracy for the EU.
If the new regulation takes effect, member states will have to phase out the use of Chinese-made equipment, including Huawei and ZTE, in the process of building ultra-high-speed internet and 5G core infrastructure. The European Commission is also considering withholding funding under the overseas infrastructure investment program Global Gateway when non-EU countries use Huawei equipment.
The EU has already designated Huawei and ZTE as "high-risk suppliers," but until now it has left decisions to the discretion of member states. However, once the new regulation is introduced, member states will be required to follow the Commission's security guidelines, and violations could face financial penalties under the "EU law infringement procedure."
Within the EU, as trade and diplomatic tensions with China rise, security concerns are growing over communications infrastructure falling under the influence of corporations linked to the Chinese government. EU Spokesperson Thomas Renier said, "The security of 5G networks is a core element of the EU economy," urging countries to quickly implement risk-mitigation measures.
Still, pushback from individual countries is expected. Sweden and the United Kingdom have already banned Chinese-made equipment for years, but Spain and Greece continue to use Huawei gear. Some member states are reluctant to cede decision-making power over communications infrastructure to the EU, and telecom operators are likely to oppose tighter regulations on the grounds that Huawei equipment is cheaper and offers better performance than that of Western corporations.