ASIATODAY.ID, BRUSSELS – The global technology war between the United States and China has entered a decisive new phase.
After banning Chinese telecom giants Huawei and ZTE from its own networks since 2022, Washington now appears to have successfully persuaded its European allies to follow suit.
The European Union (EU) is reportedly preparing to remove Chinese-made equipment from critical infrastructure, including telecommunications networks, solar energy systems, and security scanning technology.
The move is widely seen as a strategic victory for the United States in its long-running effort to curb China’s technological influence.
According to a Financial Times report on Tuesday, January 20, 2026, the European Commission is set to unveil a new cybersecurity proposal that could transform existing voluntary restrictions into mandatory rules for all EU member states.
The measures would effectively force countries to block so-called “high-risk vendors”—a category widely understood to include Huawei and ZTE.
Huawei and ZTE Face Expulsion from Europe’s Critical Infrastructure
If approved, the new EU rules could bar Chinese firms from supplying equipment for: telecommunications networks, solar power infrastructure, sensitive security and scanning systems.
Several major EU countries, including Germany and Spain, had previously resisted such measures due to high replacement costs and a lack of alternative suppliers. However, mounting geopolitical pressure and growing security concerns have hardened Europe’s stance.
The Financial Times reports that the timeline for phasing out Chinese equipment will depend on risk assessments, transition costs, and the availability of non-Chinese vendors. The proposal is expected to be formally published later this week.
Beijing Hits Back: ‘Naked Protectionism’
China reacted angrily to the reported plan. The Chinese Foreign Ministry condemned the EU’s approach, calling it “naked protectionism.”
Beijing warned that restricting Chinese companies “without legal basis” undermines free trade principles and risks politicizing economic and technological cooperation.
According to China, turning trade issues into security matters would: slow technological progress, damage global economic growth, and ultimately harm all sides.
Chinese officials urged the EU to provide a fair, transparent, and non-discriminatory business environment for Chinese firms operating in Europe.
European Consumers May Pay the Price
Telecom operators across Europe have cautioned that excluding Huawei and ZTE could drive up network deployment costs, potentially leading to higher prices for consumers. Chinese vendors have long been known for offering cost-efficient alternatives to Western suppliers.
Despite these warnings, EU officials insist the measures are necessary under the bloc’s “de-risking strategy.” European authorities argue that Chinese equipment could pose national security risks and be used to collect sensitive data—claims Beijing has repeatedly denied.
Ripple Effects: Huawei’s French Factory Under Threat
The tightening stance is already affecting Chinese investment in Europe. In December 2025, Reuters reported that Huawei was reconsidering the future of its newly completed manufacturing plant in southern France, amid increasingly hostile regulatory and political conditions.
The tougher EU position, combined with Europe’s slow rollout of 5G networks, has cast fresh uncertainty over Huawei’s long-term prospects in the region.
A New Cold War—Fought with Chips and Data
The EU’s reported plan comes amid escalating trade tensions between Brussels and Beijing, including disputes over alleged Chinese industrial overcapacity and investigations into Chinese participation in European sectors such as railways and renewable energy.
In 2024, EU authorities even raided the bloc’s offices of Chinese security equipment firm Nuctech, a move strongly criticized by China.
For many analysts, the developments signal a new Cold War, no longer defined by missiles and military alliances, but by semiconductors, 5G networks, renewable energy systems, and data control—with Europe increasingly caught in the middle. (AT Network)
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