The European Commission has unveiled its plan to revise the Cybersecurity Act, proposing the phased removal of equipment supplied by high‑risk companies from critical sectors.
Without explicitly naming any country or company, these measures are expected to primarily impact China’s telecom giants Huawei and ZTE.
“With this new cybersecurity package, we will have the means to better protect our critical information and communications technology supply chains, and to decisively counter cyberattacks,” says Henna Virkkunen, the European Commissioner for the Digital Economy and Society.
The text will apply to eighteen key sectors identified by the Commission, including detection equipment, connected and automated vehicles, electricity and water supply systems, drones, cloud computing services, medical devices, and semiconductors.
Variable transition timelines
Under the proposal, mobile operators will have thirty-six months from the publication of the list of high‑risk suppliers to remove the essential components sourced from these companies. Timelines for fixed networks, including fiber optics and submarine cables, as well as for satellite networks, will be announced later.
Restrictions will apply only after a risk assessment initiated either by the Commission or by at least three member states. The measures taken must be based on a market analysis and an impact study.
The EU executive had already in 2020 adopted a toolbox of security measures for 5G networks to limit the use of high‑risk suppliers such as Huawei, due to concerns about potential sabotage or espionage. However, some countries have yet to remove these equipments, notably because of the high costs involved.
Spain even signed last summer a contract worth €12 million with Huawei to provide equipment intended for storing intercepts authorized by courts for police and intelligence services.
Beijing denounces “pure and simple protectionism”
China did not delay in reacting. The Chinese Ministry of Foreign Affairs called the restrictions imposed on Chinese companies without a legal basis “pure protectionism,” urging the EU to provide a fair, transparent, and non‑discriminatory business environment for Chinese firms.
Beijing had already stated in November that such an initiative would violate market principles and the rules of fair competition, noting that the withdrawal of Chinese equipment in some countries had hampered their technological development and led to significant financial losses.
Europe between two dependencies
This initiative sits within a broader Brussels effort to reduce reliance both on China and on major American tech firms. Germany has recently appointed a commission of experts to rethink its trade policy toward Beijing and has prohibited the use of Chinese components in future 6G networks.
The United States, for its part, banned in 2022 the approval of new telecommunications equipment from Huawei and ZTE.
That said, implementing these restrictions could be complex. More than ninety percent of the solar panels installed in the EU are manufactured in China. Some industry representatives also highlight the lack of viable alternatives, with telecom operators warning of potential effects on consumer prices.
The bill still needs to be approved by the member states and the European Parliament in the coming months before it becomes binding. The proposed timelines are likely to face resistance from some European capitals, as member states remain responsible for their own national security.
