Previously, the European Union operated under a voluntary restriction regime for suppliers deemed risky. However, a new draft cybersecurity regulation could make these measures mandatory for all EU countries. According to officials familiar with this initiative, this will be part of a strategy aimed at strengthening technological independence and protecting against potential threats.
Some major telecommunications operators, including companies from Germany and Spain, have previously protested against such a policy. Representatives of the telecommunications sector in these countries questioned the feasibility of a rapid abandonment of Chinese technologies, pointing to the high costs of replacement and the limited number of alternatives.
The draft is expected to be presented at an official level on Tuesday. The timelines for phasing out Chinese technologies will depend on the level of threat in each specific sector, as well as the availability of other suppliers. It is also planned to take into account the economic burden that may arise for market participants when transitioning to new equipment.
In the meantime, Huawei continues to reassess its positions in the European market. In December, the company announced that it is exploring opportunities at a recently opened factory in eastern France, considering the growing pressure from governments and the slowdown in 5G deployment in European countries.
The U.S. already banned the approval of new telecommunications devices from Huawei and ZTE in 2022. Since then, Washington has been actively urging its allies to follow suit, citing national security risks. The positions of the European Commission, the Chinese Ministry of Commerce, as well as Huawei and ZTE regarding the new initiative have not yet been announced.
