China's response is drawing attention as the European Union (EU) raises the pressure to push out Chinese telecommunications equipment makers Huawei and ZTE. The Hong Kong-based South China Morning Post (SCMP) reported on the 21st that the European Commission unveiled a "Cybersecurity Act" package the previous day.
The core is elevating the "5G cybersecurity toolbox," which has recommended halting the use of "high-risk vendor" equipment in mobile networks, into legally binding rules. It also includes grounds to impose financial penalties if member states violate the rules. The scope of regulation extends beyond 5G to 18 key sectors, including solar and power infrastructure, security scanners, cloud, and drones.
The Commission required telecom operators to replace core components within 36 months after the high-risk vendor list is announced. As criteria for designating high risk, it cited links to cyberattacks, concerns flagged in EU security assessments, and the absence of an independent judiciary or democratic oversight capable of challenging government actions, which is being interpreted as effectively targeting Huawei and ZTE.
Henna Virkkunen, the European Union executive vice president for technological sovereignty, security, and democracy, said, "These threats are a strategic risk to democracy, the economy, and our way of life," and "the package will equip us with tools to respond to cyberattacks."
The Commission said that in the second quarter of last year, cyberattacks sponsored by certain countries in member states increased 22% from a year earlier, with 77 related incidents in the year causing $391 billion in damages.
Meanwhile, Huawei said, "The legislative proposal to restrict or exclude specific non-EU suppliers based on nationality, rather than evidence or technical criteria rooted in fact, violates the EU's fundamental legal principles of fairness, non-discrimination, and proportionality, and does not comply with WTO obligations," adding, "As a corporations lawfully operating in Europe, Huawei will continue to provide safe and reliable products and services." It also said, "Depending on how the legislative process unfolds, we will review all measures to protect our legitimate rights and interests, including legal and institutional responses, and are closely monitoring the situation."