- The EU Commission moves to exclude certain Chinese telecom firms.
- Huawei and ZTE face potential exclusion from EU telecom networks.
- France previously faced similar telecom equipment bans over security.
The European Union plans to ban Chinese companies Huawei and ZTE from telecom networks as part of a new directive announced January 20, 2026, citing security concerns.
The directive may increase operational costs for telecom operators, while highlighting ongoing geopolitical tensions between the EU and China over market access and competitive fairness.
The EU Commission introduced a directive on January 20, 2026, targeting high-risk vendors, focusing on Chinese firms like Huawei and ZTE. The directive aims to remove their equipment from networks within three years, invoking the Cybersecurity Act.
This move involves significant players such as Huawei Technologies Co. Ltd., which decried the proposal as lacking technical basis. The directive, if enacted, mandates vendors’ exclusion from public procurement processes.
Impacts include potential economic losses from telecom changes, while substantial savings of approximately €14.6 billion over five years are projected from improved incident detection and security measures. Huawei has voiced objections, terming the move politically motivated:
“The proposal lacks technical basis and violates EU and WTO laws,” positioning itself as a “legal operator in Europe, offering secure products,” and vowed to monitor the process to defend its interests. Source
Politically, China’s Ministry of Foreign Affairs rebuked the proposal, citing concerns about protectionism. This decision mirrors previous telecom equipment bans seen in France, which were extended due to high costs and legal challenges.
The proposed EU directive follows a broader trajectory of reducing reliance on Chinese telecom products. Historical precedents, such as the 2019 French law, highlighted similar security concerns, setting a framework for future European Union decisions.
Potential outcomes include shifts in global supply chains, a reshaping of telecommunications markets, and increased scrutiny on international tech collaborations. The directive’s implementation remains a subject of intense political debate, both within the EU and with other global stakeholders.
