EU plans rule to remove Huawei, ZTE from telecom networks

The European Commission is exploring a legal framework to require EU countries to phase out Huawei and ZTE equipment from their telecom networks.

Commission vice president Henna Virkkunen is seeking to turn the 2020 recommendation to avoid high-risk vendors in mobile networks into a binding rule.

The move comes amid growing concerns over security risks related to Chinese telecom suppliers, as trade and political tensions with China rise.

If adopted, the proposal could subject non-compliant countries to infringement procedures and financial penalties.

The commission is also considering restricting Global Gateway funding for projects involving Huawei equipment to discourage non-EU countries from using Chinese vendors.

While some countries like Sweden and the UK have already banned Chinese vendors, others, including Spain and Greece, continue to allow them.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Uneven 5G Toolbox rollout

As of June 2023 1, EU countries have not completed rollout of the 5G Toolbox, the common risk-mitigation toolkit for mobile networks. Sweden and the UK banned Chinese vendors, while Spain and Greece still allow them.
The Commission’s second progress report covers country use of the Toolbox and updates strategic plus technical steps, with recommendations 1. It is weighing a binding plan to phase out high-risk vendors from EU networks after voluntary guidance.
Any infringement procedures (EU legal actions against non-compliant member states) plus fines need country-level inventories of current 4G and 5G gear. Without that, planners cannot size cost or timeline of a phase-out.

Global Gateway limits on Huawei could shift work to non-Chinese vendors

Global Gateway funds overseas infrastructure for the EU. The 2025 flagship list names 46 projects across digital, energy, and transport 2. Digital is 13% 3, and excluding Huawei gear could steer work to European plus allied telecom suppliers.
A Commission partnership with the World Bank announced 18 connectivity investments across Africa plus Asia-Pacific plus Latin America and the Caribbean 4. Vendors plus systems integrators (firms that combine hardware plus software plus services into complete networks) can map procurement criteria, then partner with implementing agencies like development banks or ministries.
For infrastructure investors, energy holds 54% of 2025 flagships 3, while the 13% digital share still offers telecom openings in emerging markets where Chinese vendors held ground.