EU Pushes to Phase Out Chinese Suppliers from Key Infrastructure: FT Reports

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EU Pushes to Phase Out Chinese Suppliers from Key Infrastructure: FT Reports

The European Union is intensifying efforts to phase out Chinese suppliers from critical infrastructure. This initiative targets major companies like Huawei and ZTE, particularly in telecom networks and solar energy systems.

EU’s Move Against Chinese Suppliers

According to reports by the Financial Times, an existing voluntary regime that restricts high-risk vendors may soon become mandatory for EU member states. The push aims to enhance cybersecurity within the bloc, responding to increasing concerns regarding Chinese-made equipment.

Details of the Proposal

  • The proposal is scheduled for presentation on an upcoming Tuesday.
  • Timelines for phasing out Chinese equipment will vary based on sector-specific risks.
  • Considerations will include the costs and availability of alternative suppliers.

Resistance has been noted among some telecom firms, particularly in Spain and Germany, regarding the implementation of these measures. The European Commission is currently working on plans to enforce these restrictions.

International Context

Concerns about using Chinese technology are not exclusive to Europe. The United States already banned approvals for new telecommunications equipment from Huawei and ZTE in 2022, urging European allies to follow suit.

Amid these geopolitical tensions, Huawei is also reevaluating its ventures in Europe. A recently completed plant in eastern France is under scrutiny, aligning with increasing governmental opposition to Chinese infrastructure projects.

The response from the European Commission, as well as from Chinese officials, Huawei, and ZTE, is still awaited.