Finance
EU moves to force the phase-out of Chinese suppliers from key infrastructure, FT reports
Published by Global Banking & Finance Review®
Posted on January 17, 2026
2 min readLast updated: January 19, 2026
Home > Finance > EU moves to force the phase-out of Chinese suppliers from key infrastructure, FT reports
Quick Summary
The EU plans to phase out Chinese suppliers from critical infrastructure, targeting firms like Huawei and ZTE, with timelines based on risk and cost.
EU Takes Steps to Eliminate Chinese Suppliers from Critical Infrastructure
EU's Proposal for Phasing Out Chinese Suppliers
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.
Impact on Telecom Firms
The proposal will be presented on Tuesday, the report said.
Implementation Timelines
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.
Global Context and Comparisons
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)
Key Takeaways
- •The EU is moving to phase out Chinese-made equipment from critical infrastructure.
- •The proposal targets companies like Huawei and ZTE in telecom and solar sectors.
- •The cybersecurity proposal may make current voluntary restrictions mandatory.
- •Implementation timelines will consider risks, costs, and alternative suppliers.
- •The US has already banned new telecom equipment from Huawei and ZTE.
Frequently Asked Questions about EU moves to force the phase-out of Chinese suppliers from key infrastructure, FT reports
1What is cybersecurity?
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.
2What is investment?
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.
3What is blockchain?
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.
4What are telecommunications networks?
Telecommunications networks are systems that enable communication over distances through electronic means. They include various technologies such as telephones, internet, and broadcasting services.
