Brussels is set to propose a phase-out of Chinese-made equipment from key European Union infrastructure, according to officials cited by the Financial Times.

The EU’s cybersecurity proposal, expected on Tuesday, would make mandatory an existing voluntary regime restricting high-risk vendors such as Huawei and ZTE. Such companies would be prevented from supplying core technologies for telecom networks, solar energy systems, and security scanners.

Officials told the Financial Times that the move reflects concerns that Chinese technology could be exploited to collect sensitive data, a risk the United States highlighted when it banned Huawei from its networks in 2022. The proposed law will establish timelines for removing equipment based on sector-specific risks, cost implications, and the availability of alternative suppliers.

An earlier draft of the Cybersecurity Act noted that “fragmented national solutions have proven insufficient to achieve marketwide trust and co-ordination.” Some EU countries, including Spain, have continued using Chinese suppliers despite previous recommendations, signing a €12 million contract with Huawei last summer to provide hardware for judicially authorised wiretaps.

Industry voices have flagged potential challenges from the phase-out. Telecom operators in large markets such as Germany and Spain warned to the Financial Times that banning Chinese equipment could raise consumer costs. SolarPower Europe, the solar industry body of which Huawei is a member, has highlighted the limited availability of alternative suppliers, with more than 90 per cent of EU-installed solar panels currently made in China.

Beijing criticised the EU proposal in November, with a Chinese foreign ministry spokesperson telling Reuters that “facts have demonstrated that in a handful of countries, the removal of Chinese telecom companies’ quality and secure equipment not only handicaps their domestic technological development but also results in heavy financial losses.”

The European Commission has previously intensified scrutiny of Chinese firms in critical industries, launching investigations into train manufacturers and wind turbine producers and raiding Nuctech’s European offices in 2024. The proposal will now enter negotiations with the European Parliament and member states, where national security responsibilities could complicate adoption.

Huawei has not commented on the draft law. Reuters reported in December that the company was reviewing the future of a recently completed French plant amid slow 5G rollout and tightening government scrutiny.

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