The EU Is Restricting Access of Chinese Equipment to Critical Infrastructure

The European Commission intends to update the Digital Networks Act by introducing restrictions or a phased ban on Chinese suppliers’ access to critical EU infrastructure. The initiative aims to unify the member states’ approaches and reduce the risks of unauthorized access to data.

The proposed restrictions first of all concern Huawei and ZTE, their equipment in telecommunications networks, security systems, and certain segments of solar energy, in particular inverters. The law provides for a transition from voluntary restrictions to mandatory rules: identification of “high-risk” equipment at the EU level, its gradual withdrawal from critical infrastructure segments, and establishment of differentiated replacement deadlines depending on the sector and the level of threat.

The schedule for phasing out equipment will be determined based on sectoral risks, replacement costs, and the availability of alternatives. In solar energy, dependence on China is critical – about 90% of panels in the EU are of Chinese origin. Telecom operators warn of a possible increase in tariffs for consumers in case of accelerated decommissioning of equipment.

The Digital Networks Act is part of the European Commission’s broader policy to control the participation of Chinese companies in the transport, energy, and security sectors. This could accelerate the reorientation of supply chains, stimulate European technology investment, and foster alternatives in telecommunications and green energy.