EU Mandates Removal of Chinese Tech Giants from Critical Infrastructure
Brussels, Saturday, 17 January 2026.
The European Union will present mandatory regulations Tuesday forcing member states to phase out Chinese equipment from telecommunications and energy systems. The proposal targets Huawei and ZTE, making previously voluntary restrictions compulsory despite resistance from major markets like Germany and Spain. China controls 98% of global solar panel wafer production and 85% of panel manufacturing, creating significant supply chain dependencies. The move reflects escalating cybersecurity concerns and follows similar US bans implemented in 2022, potentially reshaping Europe’s technological landscape.
Mandatory Cybersecurity Framework Takes Shape
The European Commission will present its comprehensive cybersecurity proposal on Tuesday, January 21, 2026, transforming what has been a voluntary framework into mandatory requirements for all EU member states [1]. This regulatory shift specifically targets telecommunications giants Huawei and ZTE from telecom networks and solar energy systems, marking a decisive departure from the current voluntary regime that has allowed individual countries to make their own determinations [1][4]. The proposal emerges from growing concerns about supply chain security and follows months of preparation by Commission officials who have been examining methods to limit Chinese equipment suppliers in critical infrastructure [4].
Implementation Challenges and Market Resistance
The new mandatory framework faces significant implementation hurdles, particularly from telecom companies in major European markets including Germany and Spain, which have previously resisted such sweeping measures [1][4]. These markets represent substantial portions of European telecommunications infrastructure, and their resistance highlights the economic complexities of replacing established Chinese technology suppliers. Timelines for the phase-out will vary depending on the specific risks posed to the bloc and individual sectors, taking into account both the costs of transition and the availability of alternative suppliers [1]. This flexible approach acknowledges the practical challenges of immediately replacing deeply embedded technological systems while maintaining service continuity.
China’s Dominance in Critical Technologies
The scope of Chinese technological penetration in European infrastructure extends far beyond telecommunications equipment. By 2023, China controlled an overwhelming 98% of global solar photovoltaic wafer production and 85% of solar panel manufacturing [3]. The nation’s technological dominance expanded further by 2024, when China produced 70% of all wind turbines globally and became the world’s largest producer of hydrogen electrolysers and green hydrogen [3]. Chinese electrolyser costs fell by 40% between 2022 and 2024, demonstrating the competitive pricing that has made Chinese technology attractive to European buyers [3]. Additionally, Chinese state-linked companies have acquired stakes in system operators across multiple EU countries, including Portugal’s REN, Italy’s Terna, Luxembourg’s Creos, Malta’s Enermalta, and Greece’s IPTO/ADMIE [3].
Security Concerns and Strategic Implications
The EU’s regulatory response reflects mounting cybersecurity concerns highlighted by recent infrastructure vulnerabilities. In April 2025, Spain experienced a significant blackout caused by the sudden loss of 2.1 gigawatts of capacity, underscoring the critical nature of energy grid security [3]. EU officials and Members of European Parliament voiced specific concerns in May 2025 about high-risk vendors like Huawei, which holds a 115-gigawatt share of the EU energy market [3]. These security apprehensions are compounded by China’s 2017 National Intelligence Law, Article 7, which mandates that Chinese producers share product information with the state, raising concerns about potential remote access to European infrastructure systems [3]. The regulatory framework follows the precedent set by the United States, which banned approvals of new telecommunications equipment from Huawei and ZTE in 2022 and has actively encouraged European allies to implement similar restrictions [1][4]. The UK and Sweden have already implemented bans on Chinese vendors, positioning themselves ahead of the EU-wide mandate [4].