Published by Global Banking & Finance Review®
Posted on January 17, 2026
2 min readLast updated: January 19, 2026
The EU plans to phase out Chinese suppliers from critical infrastructure, targeting firms like Huawei and ZTE, with timelines based on risk and cost.
Jan 17 (Reuters) - The European Union is moving to force the phase-out of Chinese‑made equipment from critical infrastructure, barring companies such as Huawei and ZTE from telecom networks and solar energy systems, the Financial Times reported on Saturday.
An existing regime to restrict high-risk vendors is voluntary but the zone's cybersecurity proposal is likely to make it mandatory for EU countries, the report said, citing unidentified officials.
Some telecom firms in large markets such as Spain and Germany have previously resisted implementing such measures.
The proposal will be presented on Tuesday, the report said.
Timelines for the phase-out will depend on the risks posed to the bloc and the specific sector and would take into account the costs and availability of alternative suppliers, it added.
Reuters was not able to immediately verify the report. The European Commission, China's commerce ministry, Huawei and ZTE did not immediately respond to requests for comment.
Huawei has been considering the future of a recently completed plant in eastern France, Reuters reported in December, amid a hardening stance by some governments on using Chinese equipment and the slow roll-out of 5G in Europe.
The United States banned approvals of new telecommunications equipment from Huawei and ZTE in 2022 and has encouraged European allies to do the same.
(Reporting by Abu Sultan in Bengaluru; Editing by Edwina Gibbs)
Cybersecurity is the practice of protecting systems, networks, and programs from digital attacks. It involves implementing measures to safeguard sensitive data from unauthorized access and damage.
Investment is the act of allocating resources, usually money, in order to generate income or profit. It can involve purchasing stocks, bonds, real estate, or other assets.
Blockchain is a decentralized digital ledger technology that records transactions across many computers. It ensures that the recorded transactions cannot be altered retroactively, enhancing security and transparency.
Telecommunications networks are systems that enable communication over distances through electronic means. They include various technologies such as telephones, internet, and broadcasting services.
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