Report: EU wants tougher measures against Huawei and ZTE

The European Commission apparently wants to take tougher measures to ensure that member states refrain from using network technology from Chinese companies such as Huawei and ZTE. These are considered high-risk providers by the Commission due to their proximity to the Chinese state. If it is up to Commission Vice President Henna Virkkunen, a recommendation to member states that has existed since 2020 is to be converted into a legally binding obligation.

According to the US financial news agency Bloomberg, citing sources who wished to remain anonymous, member states that violate the obligation would face the initiation of infringement proceedings and financial penalties. Currently, it is up to national governments which providers of critical infrastructure they use. In Germany, the federal government and network operators already agreed in July 2024 to exclude Huawei from 5G networks.

Ban is not intended to cover only mobile communications

However, Henna Virkkunen is likely not only concerned with mobile communications. According to the report, she wants to extend the restrictions for Chinese equipment suppliers to fixed-line infrastructure as well. This is intended to prevent their technology from being used in the expansion of modern fiber optic networks. The Commission is also considering dissuading third countries from using Chinese providers. The leverage here would be Global Gateway funding, which is paid to non-EU countries. This would be withheld if projects involving Huawei equipment are planned.

There is currently no uniform approach in the EU regarding Huawei and Co. While Sweden and the former EU member Great Britain have imposed bans, Spain and Greece continue to allow the use of their technology. The lack of swift action exposes the entire EU to risk, said Commission spokesperson Thomas Regnier.

Pressure from the USA and the economy

The EU also assumes that the USA, under the administration of Donald Trump, will exert stronger pressure to forgo network equipment from China. Pressure is also coming from the European economy. Suppliers like Nokia complain that they are being pushed out of the market in China. Accordingly, they see an imbalance if the EU remains open to Chinese providers. However, the legally binding obligation is likely to meet with resistance. Telekom operators argue that Huawei technology is cheaper and technically superior to Western alternatives.

(mki)