EU Moves To Limit Chinese Firms’ Role In Critical Infrastructure And Cybersecurity

The European Union is set to announce new plans on Tuesday aimed at keeping “high-risk” Chinese suppliers out of Europe’s critical infrastructure, as Brussels steps up efforts to cut strategic dependencies on non-EU countries. The move comes amid increasingly strained relations between the EU and China, driven by trade disputes, concerns over what the bloc calls unfair competition, and growing security worries often echoed by the United States.

At the centre of the proposal is a revision of EU cybersecurity rules, which the European Commission will publish to tighten controls on foreign companies considered security risks. In 2023, the EU had already urged member states to remove Huawei and ZTE equipment from mobile networks, but officials now want to turn that guidance into a compulsory ban. Despite existing powers allowing national authorities to restrict suppliers, fewer than half of EU countries have acted so far.

If adopted, the mandatory restrictions could go beyond telecoms equipment to include other Chinese-made products, such as solar panels. The commission is also considering adding “sovereignty” criteria to the certification system for cloud services, a step that could exclude US companies that currently dominate the European market. France has been a strong supporter of this approach, though progress has stalled due to sharp divisions among the EU’s 27 member states.

Alongside the security proposals, the commission will unveil plans on Wednesday for a Digital Networks Act to modernise Europe’s telecoms sector. Brussels argues that fragmented national rules in sectors like telecoms and defence are holding back competitiveness and investment. However, funding remains a major challenge, with the EU estimating it needs €200 billion ($232 billion) to upgrade telecoms infrastructure.

A draft of the proposal seen by AFP does not include “fair share” payments from major tech firms for their heavy use of network bandwidth, a long-standing demand from telecoms companies. The idea lost momentum after last year’s EU-US tariff deal, which Washington said included a commitment by the EU not to introduce such fees.

The commission also plans to give member states until 2035 to phase out copper telecoms networks, allowing more time to transition to faster fibre systems. Both the cybersecurity revisions and the Digital Networks Act will still require approval from EU member states and the European Parliament before becoming law.