EU moves toward Huawei ban across member states over security concerns

Huawei

The European Commission is preparing to take a tougher stance on Chinese telecom equipment makers Huawei Technologies and ZTE Corp., with plans to push for a Europe-wide phaseout of their technology from mobile and broadband networks.

According to people familiar with the matter, Commission Vice President Henna Virkkunen is drafting a proposal to turn the EU’s 2020 “high-risk vendor” recommendation into binding law. If approved, this would require all member states to remove Huawei and ZTE gear from critical infrastructure and impose penalties on countries that fail to comply.

While national governments traditionally decide their own telecom policies, Virkkunen’s plan would align the bloc under a single security framework. The move comes as concerns deepen over the geopolitical and cybersecurity implications of relying on Chinese suppliers closely linked to Beijing.

“The security of our 5G networks is crucial for our economy,” said European Commission spokesperson Thomas Regnier, while declining to comment on the specific details of the proposal.

The draft plan reportedly also explores extending restrictions to fixed-line networks, as EU nations expand their fibre broadband rollouts. Additionally, the Commission may limit Global Gateway funding, the EU’s global infrastructure initiative, for projects in non-EU countries that use Huawei equipment, as part of efforts to reduce dependence on Chinese technology.

The renewed push follows years of uneven implementation of the EU’s 5G “toolbox,” a 2020 framework that urged countries to exclude high-risk vendors from mobile networks but left enforcement optional. Nations such as the UK and Sweden have already banned Huawei entirely, while others, including Spain and Greece, continue to permit its use.

The proposal is likely to ignite political resistance, as several member states and telecom operators have long argued that Huawei’s equipment offers better performance at lower cost than Western alternatives. However, growing alignment between Brussels and Washington under the second Trump administration has intensified scrutiny of Chinese technology in European networks.

Following reports of the potential ban, shares of Huawei’s European rivals rose, with Nokia’s stock up 5% and Ericsson gaining 3.7%, reflecting investor optimism about renewed demand for non-Chinese equipment.

For now, the EU’s message is clear: Europe’s digital sovereignty and network security can no longer depend on the goodwill of Beijing. Whether all member states will agree, however, remains to be seen.