European Commission plans to ban Chinese companies that America calls 'national security threat' across Europe and why it may not go well

The European Commission is reportedly considering steps to compel countries in Europe to remove Huawei and ZTE equipment from their telecommunications networks. According to a report by Bloomberg, citing people familiar with the matter, European Commission is exploring ways to force European Union member states to phase out Chinese telecom companies Huawei and ZTE Corp from their telecommunications networks.

Both Huawei and ZTE are banned in America. The US government calls Huawei a 'national security threat'.According to the report, Commission Vice President Henna Virkkunen is exploring ways to turn the EU’s 2020 recommendation urging countries to avoid “high-risk vendors” in 5G networks into a binding legal requirement. While infrastructure decisions currently rest with national governments, the proposal would require EU states to comply with the bloc’s security guidance.Virkkunen’s team is also studying ways to curb Chinese equipment in fixed-line broadband networks, as the bloc ramps up efforts to deploy high-speed fiber connections. In addition, the Commission is reportedly considering withholding Global Gateway funding—a major EU investment program—from non-EU countries that use Huawei equipment in projects backed by EU grants.Former Commissioner Thierry Breton later pushed to explicitly name Huawei and ZTE as security risks and pledged to remove their equipment from EU institutions’ networks.

Still, national governments have largely resisted surrendering authority over telecom decisions to Brussels.

Why 'ban China' debate in Europe again

The debate has resurfaced as Germany and Finland consider tighter restrictions on Chinese vendors, Bloomberg noted. By contrast, Spain and Greece continue to allow Huawei’s participation in their telecom networks, highlighting divisions within the bloc. The move reflects growing concern in Brussels over the potential security risks posed by Chinese telecom companies amid deteriorating trade and political ties with Beijing.

EU officials fear that allowing Chinese suppliers access to critical infrastructure could expose national networks to espionage or disruption. Efforts to limit Huawei’s role in Europe date back to the Trump administration’s campaign to isolate the Chinese tech giant globally.

The EU responded with its “5G toolbox” in 2020, which encouraged—but did not require—countries to exclude high-risk vendors. Sweden remains one of the few EU members to have fully banned Huawei, a move that prompted sharp retaliation from Beijing and discouraged others from following suit.

Why some countries not in favour of the ban

Critics argue that the uneven approach undermines collective cybersecurity, while telecom operators warn that banning Huawei could raise costs and delay network rollouts, given the company’s competitive pricing and technology.

China on calling Huawei and ZTE "high-risk" suppliers

China’s Foreign Ministry has previously denounced the EU’s characterization of Huawei and ZTE as “high-risk” suppliers, calling the stance politically motivated and lacking legal or factual basis.