Europe Moves to Lock Out Huawei and ZTE — Beijing Fires Back

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Brussels Takes a Firm Stand

The European Commission took a significant step on Monday, recommending that EU member states bar equipment from Chinese telecom manufacturers Huawei and ZTE from their connectivity infrastructure. A Commission spokesperson confirmed the recommendation at a press briefing in Brussels, signaling a decisive shift in Europe's approach to digital security.

The move is part of a broader cybersecurity package currently working its way through the EU's legislative process. Once enacted, the new rules would give the bloc the legal authority to formally ban so-called "high-risk suppliers" from operating in the EU market — making what was once a recommendation into binding law.

Years in the Making

This latest development is not a sudden change of course. The European Commission first flagged Huawei and ZTE as security risks back in 2019 and has been recommending their removal from 5G networks since 2020. However, progress has been uneven: only 13 of the EU's 27 member states have acted on those earlier recommendations, according to Commission sources.

The new Cybersecurity Act would change that. For the first time, the removal of high-risk vendors would become mandatory — with member states required to comply within three years of the law's adoption. The legislation also introduces a formal framework for designating entire countries as "cybersecurity threats," which could trigger broader exclusions across 18 critical sectors, including energy, transport, and information technology.

China Pushes Back — Hard

Beijing has wasted no time in making its displeasure known. Last week, China's Ministry of Commerce submitted a 30-page document to the European Commission, explicitly warning that broad retaliation was on the table if Huawei and ZTE were penalized under the new law. Chinese diplomats have since been lobbying both the Commission and individual EU governments to kill the proposed rules.

A Chinese diplomat, speaking anonymously at a briefing, accused the EU of applying "typical double standards" and called the cybersecurity law discriminatory. Beijing wants key clauses deleted — specifically those defining "countries posing cybersecurity concerns" and "high-risk suppliers."

China's commerce ministry spokesperson put it bluntly: if the EU proceeds with the rules as written, Beijing "will be forced to take countermeasures."

What's at Stake — For Both Sides

The stakes are considerable. Huawei and ZTE together hold an estimated 33 to 40 percent share of Europe's 5G infrastructure, according to research firm Strand Consult. A full removal would represent the largest forced replacement of telecom equipment in European history — a logistical and financial challenge that has already given some member states pause.

China's threats are not without teeth either. When Sweden banned Chinese vendors from its 5G networks in 2020, Ericsson's revenues in China dropped by 46 percent the following year — a painful illustration of Beijing's willingness to use economic leverage.

At the same time, European telecoms vendors like Nokia and Ericsson stand to benefit enormously from a full Huawei phase-out, and EU officials argue the long-term security dividend outweighs the short-term disruption.

A Law Still in Progress

Despite the heated rhetoric, the Cybersecurity Act is still far from final. It must pass through negotiations with both EU member governments and the European Parliament — a process that could take considerable time. Member states with deep economic ties to China, including Germany, France, and the Netherlands, are seen as potential swing votes, and Beijing is clearly betting that pressure on those capitals will soften the final text.

For now, the Commission is holding firm. The recommendation issued Monday is a clear political signal: Europe is no longer content to leave cybersecurity up to individual national governments — especially when the risks are as visible as a 30-page lobbying document from Beijing's commerce ministry.

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Sources

1. Reuters – EU recommends member states exclude Huawei, ZTE from connectivity infrastructure (May 4, 2026): https://www.reuters.com/sustainability/boards-policy-regulation/eu-recommends-member-states-not-use-huwaei-zte-connectivity-infrastructure-2026-05-04/
2. South China Morning Post – EU moves to force Huawei out of networks (Jan. 21, 2026): https://www.scmp.com/news/china/article/3340610/eu-moves-force-huawei-out-networks-opening-door-wider-chinese-tech-bans
3. South China Morning Post – China threatens EU firms over cybersecurity plans: https://www.scmp.com/news/china/diplomacy/article/3350763/china-threatens-eu-firms-over-cybersecurity-plans-targeting-chinese-companies
4. The Next Web – China threatens the EU with broad retaliation: https://thenextweb.com/news/china-threatens-eu-retaliation
5. ChinaTechNews.com – Retaliation warnings from China as EU cyber bills advance (May 2, 2026): https://www.chinatechnews.com/2026/05/02/121042-retaliation-warnings-from-china-as-eu-cyber-and-industrial-bills-threaten-systemic-discrimination
6. Reuters via Yahoo News – China threatens action if EU does not revise tech rules (Apr. 29, 2026): https://www.yahoo.com/news/articles/china-threatens-action-eu-does-172123726.html

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