Huawei, ZTE to be hit as EU moves to force phase-out of Chinese equipment in critical infrastructure: Report

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Chinese companies including Huawei and ZTE are staring at expulsion from European Union critical infrastructure, as the bloc moves to force the phase out of Chinese made equipment from its telecom networks and solar energy systems, as per a Financial Times report citing official sources.

The sources said that the EU's new cybersecurity proposal set to be presented on 20 January mandates restriction on high-risk vendors. At present, restrictions are voluntary, it added.

Notably, telecom companies in Germany and Spain, which have large telecom markets, have previously resisted implementing such measures.

EU to phase-out Chinese manufacturers from critical infra: What we know

Timelines for the phase-out will depend on the risks posed to the bloc and the specific sector and would take into account the costs and availability of alternative suppliers, it added.

Reuters was not able to immediately verify the report. The European Commission, China's commerce ministry, Huawei and ZTE did not immediately respond to requests for comment.

Huawei has been considering the future of a recently completed plant in eastern France, Reuters reported in December, amid a hardening stance by some governments on using Chinese equipment and the slow roll-out of 5G in Europe.

The United States banned approvals of new telecommunications equipment from Huawei and ZTE in 2022 and has encouraged European allies to do the same.

(With inputs from Reuters)

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