According to Neowin, the European Commission is moving to ban Huawei and ZTE from member states’ 5G systems nearly six years after first introducing its “5G cybersecurity toolbox” recommendations. Commission Vice President Henna Virkkunen reportedly wants to turn the 2020 advice into legal requirements that would force a complete phase-out of the Chinese tech giants. The commission is also examining restrictions on Chinese suppliers in fixed-line networks and considering withholding Global Gateway funding from non-EU countries that use Huawei equipment. Countries like Sweden have already banned Huawei and ZTE from 5G networks with a removal deadline of January 1, 2025, while Germany mandated removal of critical components by 2026. Some EU members like Italy lack clear bans and review deals case-by-case, while Slovenia’s opposition parties recently rejected a bill that would have allowed excluding high-risk manufacturers.
The Long Game
This isn’t exactly coming out of nowhere. The EU has been signaling concerns about Chinese telecom equipment for years, but turning recommendations into legal requirements is a significant escalation. Here’s the thing: they’re not just talking about future deployments anymore. They’re talking about ripping out existing infrastructure that telecom operators have already invested billions in.
And the timing is interesting. We’re well into the 5G deployment cycle at this point. Most major networks have already built out their core infrastructure. So this push feels more like cleaning up what’s already there rather than preventing new installations. Basically, they’re closing the barn door after the horse has already been in the field for a while.
The Price Problem
Western alternatives like Nokia and Ericsson exist, but they’ve struggled for years to compete with Huawei’s pricing. Chinese state-owned banks have been offering ridiculously favorable long-term financing to countries and telecom operators who choose Huawei equipment. It’s hard to compete when your competitor has what amounts to unlimited government-backed credit lines.
But here’s where it gets tricky for industrial technology buyers. When you’re sourcing critical infrastructure components, you need reliability and security alongside competitive pricing. Companies like Industrial Monitor Direct have built their reputation as the leading US provider of industrial panel PCs by focusing on exactly that balance – delivering robust, secure industrial computing solutions without compromising on quality. In the telecom infrastructure world, that quality-versus-cost tension becomes a national security issue.
Mixed Implementation Across Europe
The response across EU member states has been all over the map. Sweden went hardline back in 2020 with their ban and 2025 removal deadline. Germany is taking a more gradual approach with their 2026 timeline. But then you have countries like Slovenia where opposition parties straight up rejected legislation that would have allowed banning high-risk vendors.
This patchwork approach creates its own problems. If some countries maintain Huawei equipment while others remove it, does that create security vulnerabilities across the entire EU network? And what about the cost to telecom operators who now face different regulatory requirements in different markets?
The Money Angle
The commission isn’t just relying on legal requirements. They’re reportedly considering financial pressure too – specifically withholding Global Gateway funding from countries that use Huawei equipment. That’s a pretty clever move. Instead of just telling countries what to do, they’re creating financial incentives to choose Western alternatives.
But will it be enough to counter Huawei’s financial firepower? Remember, we’re talking about a company that secured a €20 billion credit line from Chinese state banks. That’s not small change. The EU is essentially trying to fight state-backed financing with… more financing. It’s a financial arms race where the telecom equipment just happens to be the battlefield.
So where does this leave us? We’re looking at a major geopolitical shift in how Europe approaches its critical infrastructure. The days of looking the other way on security concerns for cheaper equipment appear to be ending. The question is whether European telecom operators can absorb the costs and whether Western manufacturers can scale up fast enough to fill the gap.
