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You are here: Home / cat / Why the EU’s Plan to Block Chinese Companies Deemed US Security Risks Could Backfire

Why the EU’s Plan to Block Chinese Companies Deemed US Security Risks Could Backfire

Dated: November 11, 2025

The European Commission is reportedly exploring measures to compel EU member states to remove Huawei and ZTE equipment from their telecommunications networks. Citing sources familiar with the matter, Bloomberg reported that the Commission is looking to turn its 2020 recommendation urging countries to avoid “high-risk vendors” in 5G networks into a binding legal requirement. Currently, infrastructure decisions are left to national governments, but the proposal would require EU states to follow the bloc’s security guidance.

Vice President Henna Virkkunen’s team is also examining ways to limit Chinese equipment in fixed-line broadband networks as Europe ramps up high-speed fiber deployment. In addition, the Commission is considering withholding Global Gateway funding from non-EU countries that use Huawei equipment in EU-backed projects. Former Commissioner Thierry Breton has advocated explicitly naming Huawei and ZTE as security risks and pledged to remove their equipment from EU institutions’ networks, although most national governments have resisted ceding telecom authority to Brussels.

The debate over banning Chinese vendors has resurfaced as Germany and Finland consider stricter restrictions, while Spain and Greece continue to allow Huawei in their telecom networks, reflecting divisions within the EU. The move stems from growing concerns about potential security risks amid strained trade and political ties with Beijing. EU officials fear Chinese access to critical infrastructure could expose networks to espionage or disruption. Efforts to curb Huawei in Europe trace back to the Trump administration’s global campaign against the company, and the EU’s 2020 “5G toolbox” encouraged, but did not require, countries to exclude high-risk vendors. Sweden remains the only EU member to fully ban Huawei, which prompted strong retaliation from Beijing and discouraged wider adoption of similar bans.

Some EU countries and industry critics argue that an outright ban could raise costs and delay network rollouts due to Huawei’s competitive pricing and advanced technology. China has previously condemned the EU’s characterization of Huawei and ZTE as “high-risk” suppliers, calling it politically motivated and lacking factual or legal basis. The debate highlights ongoing tensions between collective cybersecurity goals, national autonomy, and the EU’s relationship with China.

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