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Chinese officials and Huawei Technologies have strongly opposed the European Union’s proposal to broaden its Cybersecurity Act beyond 5G wireless technologies. They warn that excluding companies from the market without concrete evidence or technical justifications poses serious violations of market principles and fair competition regulations.
This stance was expressed following the European Commission’s release of a draft amendment on January 20, which suggests the phased, mandatory removal of information and communications technology equipment from entities designated as “high-risk suppliers.” These measures target critical sectors including telecommunications, energy, and healthcare.
While the draft doesn’t specifically name any country or company, experts believe it will have a significant impact on Chinese technology firms such as Huawei and ZTE. In response, a Huawei spokesperson stated that the proposal to restrict or exclude suppliers based on their country of origin, rather than factual evidence and technical standards, conflicts with core legal principles of fairness, non-discrimination, and proportionality upheld by the EU. They also emphasized that such actions would go against the EU’s commitments under the World Trade Organization.
In recent years, Europe has increased its scrutiny of Chinese tech companies. For example, Germany has formed a special advisory committee to review its trade policies with China and has decided not to incorporate Chinese components in future 6G telecommunications infrastructure.
A spokesperson for the Chinese foreign ministry expressed deep concern over the EU’s latest cybersecurity measures, describing them as an attempt to unilaterally reduce reliance on mobile network supply chains. They criticized the effort, noting that phasing out quality Chinese telecom equipment not only hampers digital development but also results in significant economic losses. Additionally, they argued this move hampers the EU’s technological progress, economic growth, damages its reputation for an open market, and diminishes foreign investor confidence.
The proposed policy notably expands its scope beyond 5G networks, covering hardware, software, and certain AI models. It targets 18 critical sectors, including telecommunications, cloud services, medical devices, surveillance equipment, semiconductors, water systems, power infrastructure, drones, and autonomous vehicles.
Under the draft, mobile operators would have 36 months to gradually remove components from “high-risk” suppliers following the listing. Separate timelines would be set for fixed networks, fiber optics, submarine cables, and satellite communications.
The EU emphasizes that the draft is not aimed at any specific country or company. Any restrictions would only be introduced after a thorough risk assessment that considers market impacts and costs. The revised Cybersecurity Act still requires discussions and approval from member governments and the European Parliament before it can be enacted.
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