The European Union is preparing a decisive policy shift to enhance the security of its most sensitive systems by phasing out "high-risk" Chinese suppliers from critical infrastructure. According to officials, the move is designed to strengthen security, reduce strategic dependence, and protect long-term economic stability. The policy reflects growing concerns about foreign influence over assets that support Europe's daily functioning and national security.
The ban focuses on sectors where disruption could cause severe economic or social damage, including energy grids, transportation, telecommunications, water supply, and digital services. European leaders argue that infrastructure decisions now require more rigorous political and security assessments, viewing supply chains as strategic assets rather than mere commercial choices.
Geopolitical tensions have accelerated this policy direction. Europe aims to ensure uninterrupted access to energy, communications, and transport systems during crises. The EU's action signals a firm commitment to resilience and strategic autonomy, marking a clear shift in EU-China relations.
The European Commission is set to propose a new Cybersecurity Act that would mandate all member states to replace equipment from vendors like Huawei and ZTE. This aligns with Brussels' goal of reducing dependence on both Chinese suppliers and major U.S. tech companies. However, implementation faces challenges as member states show varying levels of commitment.
For instance, Germany has agreed with operators to strip all Huawei and ZTE parts from "core" networks by the end of 2026, and from "access" networks like cell towers by 2029. The German regulator BNetzA has proposed reclassifying the entire Radio Access Network (RAN) as "critical," which could extend strict bans to physical tower components.
In contrast, Spain's Ministry of the Interior signed a €12.3 million contract with Huawei in July 2025 to use OceanStor servers for storing judicially authorized wiretaps used by intelligence and law enforcement. U.S. officials have warned that sharing intelligence with Spain could become risky if sensitive police data is stored on Chinese-made hardware.
The EU's push for technological self-reliance also involves developing local alternatives to avoid sole reliance on U.S. tech, with Sweden's Ericsson and Finland's Nokia emerging as major European options. The bloc has also taken action against other Chinese companies, conducting raids on Nuctech's offices in Poland and the Netherlands in April 2024 and opening an investigation under the Foreign Subsidies Regulation in December 2025. Investigations into Chinese wind turbine manufacturers like Ming Yang are also underway to check if unfair subsidies are helping them dominate the renewable energy market.
Beijing has consistently criticized Europe's measures as violations of market principles, warning that removing their "quality and secure" equipment will result in heavy financial losses for European citizens. The Chinese ambassador to Berlin previously suggested Beijing could declare German cars "unsafe" in retaliation for a Huawei ban.
