EU considers binding curbs on Huawei and ZTE in national mobile networks

The European Commission is weighing a move to require European Union countries to phase out equipment from Huawei and ZTE Corp in their telecommunications networks, according to reporting by Bloomberg News.

The reported plan would convert the commission’s 2020 “5G toolbox” guidance on excluding high‑risk vendors into a legal obligation and expose non‑compliant member states to infringement proceedings and financial penalties.

Infrastructure choices in telecoms typically rest with national governments, but the proposal from commission vice president Henna Virkkunen would compel alignment across the bloc with existing security recommendations. Bloomberg’s account, preserved by the Internet Archive, says officials are also looking at limiting Chinese suppliers in fixed‑line networks while countries accelerate fibre roll‑outs, and at discouraging non‑EU nations from using Huawei gear by restricting access to Global Gateway funding.

The commission is framing the effort in terms of economic resilience. “The security of our 5G networks is crucial for our economy,” commission spokesperson Thomas Regnier said, while declining to discuss any potential ban.

The commission has previously urged capitals to fully implement the toolbox. “The commission urges member states that have not yet implemented the 5G Toolbox to also adopt relevant measures to effectively and quickly address the risks. A lack of swift action exposes the EU as a whole to a clear risk,” Regnier said.

Beijing has contested the EU’s stance. China’s Foreign Ministry has criticised the characterisation of Huawei and ZTE as high‑risk suppliers as lacking “legal or factual basis,” according to Bloomberg. Huawei did not immediately respond to requests for comment.

Europe’s approach has been uneven. The UK and Sweden banned Chinese vendors years ago, while countries such as Spain and Greece continue to permit deployments. Sweden’s full ban provoked Chinese retaliation, which has been cited as discouraging other governments. Former commissioner Thierry Breton later sought to increase pressure by naming Huawei and ZTE explicitly and pledging to strip their technology from commission networks, but national action lagged.

Any binding curbs would have commercial consequences. American depository receipts of Nokia Oyj rose as much as 5 per cent after Bloomberg’s report, with Ericsson AB up as much as 3.7 per cent. Telecom operators are likely to push back, arguing that Huawei’s technology remains cheaper and competitive against Western alternatives, raising questions over costs, timelines and vendor diversification.

The issue first surged during the presidency of Donald Trump, when Washington barred Huawei and pressed European nations to follow suit. Today, with trade ties strained and security concerns growing, Brussels is testing whether voluntary guidance can give way to a single rulebook across the EU.