Telecommunications companies warn that the 36-month phase-out period could cost the industry billions of euros in extra regulatory expenses.
Huawei has responded to the European Union’s plan to phase out its technology, calling the decision a violation of the union’s principles.
The European Union had earlier proposed a new plan to remove suppliers that the bloc’s decision makers determine to be “high risk” from critical sectors.
The European Commission launched a proposal aimed at removing technology from “high-risk” suppliers across the European Union’s most sensitive industries.
The draft does not name specific companies, but it is widely understood to target Chinese giants Huawei and ZTE. Cryptopolitan previously reported that Europe is attempting to weed out Western technology in order to achieve “technological sovereignty” and protect its infrastructure from foreign interference.
The EU tech chief Henna Virkkunen, the Executive Vice-President for Tech Sovereignty, Security and Democracy, stated that the proposal provides the means to “better protect our critical supply chains” and fight cyber threats decisively.
Cited by Reuters, a Huawei spokesperson stated that the proposal violates the EU’s own principles of fairness and non-discrimination, arguing that the European representative body is making decisions based on the “country of origin” rather than technical standards or factual evidence.
Huawei also reminded that it has the right to escalate the exclusion via the legal route based on what it considers a potential violation of World Trade Organization (WTO) obligations.
The proposed restrictions would apply to 18 key sectors including 5G and satellite networks, semiconductors, electricity and water supply systems, and even connected vehicles and drones. Mobile operators will have 36 months to remove key components from high-risk suppliers once a list of such vendors is officially published.
Connect Europe, a group that represents major telecommunications providers, estimates that the costs of replacing equipment and complying with the new standards could run into the billions of euros.
These costs are a primary reason why some EU countries have been slow to remove Huawei equipment from their current 5G networks.
If companies have to spend billions on new equipment, there is a risk that these costs could be passed down to consumers through higher monthly internet and mobile bills. Some operators also fear that a forced phase-out will slow down the rollout of new technology across the continent.
In response, the EU’s proposal states that restrictions only take effect after a formal risk assessment that can be started by the Commission or by at least three member countries. Any final decision would theoretically be based on market analysis to understand how it affects the economy.
Germany’s Chancellor Friedrich Merz recently announced that Germany will completely ban Chinese components from its future 6G networks. The country has also started the process of removing Huawei gear from its 5G core networks, with a plan for full exclusion by the end of 2026.
