• The EU may enforce 2020 rules to drop Huawei and ZTE from mobile networks.
• The move marks Brussels’ toughest stance yet toward Beijing.

The European Commission is considering new rules that could require all EU member states to remove Huawei Technologies and ZTE equipment from their telecom networks, according to people familiar with the matter.

Vice President Henna Virkkunen is reportedly seeking to turn the Commission’s 2020 recommendation—urging countries to avoid high-risk vendors in mobile networks—into a binding law. While decisions about network infrastructure usually rest with national governments, the proposal would make it mandatory for all EU countries to follow Brussels’ security guidance. Those that fail to comply could face legal action or financial penalties.

The renewed push reflects a growing unease in Europe over the role of Chinese telecom companies amid worsening relations with Beijing. Officials in Brussels worry that depending on suppliers closely tied to China’s government could endanger national security and give Beijing potential leverage over Europe’s communications infrastructure.

Virkkunen is also exploring ways to limit Chinese suppliers’ involvement in fixed-line networks. The timing is key: European countries are racing to expand high-speed broadband through new fibre cables, and many have relied on Chinese-made equipment to keep costs low. To discourage that, the Commission may tighten funding conditions for its Global Gateway program, which finances digital and infrastructure projects in developing countries. Under the new proposal, countries using Huawei gear in such projects could lose access to those funds.

“The security of our 5G networks is crucial for our economy,” Commission spokesperson Thomas Regnier said, declining to comment on details of the potential ban.

Huawei did not immediately respond to requests for comment. China’s Foreign Ministry has previously criticised the EU’s position, saying there is no legal or factual basis for classifying Huawei and ZTE as high-risk suppliers.

The report triggered a brief rally in shares of Huawei’s European competitors. Nokia’s American depositary receipts rose as much as 5%, while Ericsson’s climbed 3.7%.

Concerns about Huawei and ZTE have resurfaced across Europe. Germany and Finland are weighing stricter restrictions, while the UK and Sweden banned Huawei years ago. However, countries such as Spain and Greece continue to allow Chinese vendors in their networks. Critics say this patchwork approach leaves gaps in Europe’s collective cybersecurity defences.

If the Commission moves ahead, it is likely to face strong resistance from member states. Many governments are reluctant to give up control over their national network decisions. Telecom operators are also expected to push back, arguing that Huawei’s products are less expensive and often more advanced than Western alternatives.

The debate dates back to Donald Trump’s first term as US president, when Washington banned Huawei and urged European allies to follow. In response, the European Commission created its “5G toolbox” in 2020. The document recommended excluding high-risk vendors from radio and core networks, but left implementation up to each country.

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

Sweden’s decision to fully ban Huawei drew a sharp backlash from Beijing, discouraging other EU nations from taking similar steps. Former Commissioner Thierry Breton later named Huawei and ZTE directly, breaking from earlier practice of referring to “high-risk vendors.” He also promised to remove their equipment from the Commission’s own networks, though the move failed to shift national policies.

With Trump back in office this year, European telecom networks are once again under scrutiny. Huawei’s rival Nokia has warned that Chinese technology remains deeply embedded across European infrastructure, even as China moves to phase out Nokia and other Western suppliers from its domestic market.

The renewed debate highlights how national security concerns, trade tensions, and economic competition continue to shape Europe’s technology strategy. EU officials argue that allowing Chinese firms to maintain a foothold in critical infrastructure could expose the bloc to espionage or disruptions. Meanwhile, telecom providers warn that removing Huawei could raise costs and slow down 5G and fibre rollouts across the continent.

China continues to reject claims that Huawei and ZTE threaten national security, calling the EU’s stance politically motivated and unfounded.

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