EU Cybersecurity Overhaul Draws Objections From Huawei and Telecom Industry

Published: 21 Jan 2026

Brussels -The European Union is moving closer to adopting tougher cybersecurity rules that would reshape how critical digital infrastructure is built and secured across the bloc, prompting objections from China’s Huawei and concerns from European telecom operators.

The European Commission has proposed changes to the EU Cybersecurity Act that would allow authorities to gradually remove equipment and components supplied by vendors considered to pose heightened security risks. Although the proposal does not identify specific companies or countries, it is widely understood as part of a broader effort to reduce Europe’s reliance on non-European technology providers.

EU officials argue that the plan responds to a sharp rise in cyberattacks, ransomware incidents, and fears of foreign interference in essential services. The revised framework would give the bloc stronger tools to protect supply chains that support public safety, economic activity and national security.

Under the proposal, restrictions on suppliers would be triggered only after a formal risk assessment. This assessment could be initiated by the Commission itself or at the request of at least three EU member states. Any resulting measures would also be supported by market analysis and impact studies.

The new rules would apply to 18 sectors the Commission considers critical, including:

telecommunications networks and detection equipment
electricity generation, storage and water systems
cloud computing services and semiconductors
medical devices and surveillance technology
connected vehicles, drones and space services

For mobile telecom networks, operators would have up to three years from the publication of a high risk supplier list to replace key components. Timelines for fixed networks, including fibre and satellite infrastructure, are expected to be announced later.

Huawei criticised the approach, saying that excluding suppliers based on national origin rather than technical evidence undermines principles of fairness, non discrimination and proportionality. The company also warned that such measures could conflict with international trade rules and said it would closely monitor the legislative process.

European telecom operators have also expressed unease. Industry representatives warn that mandatory equipment replacement could impose heavy financial burdens and divert investment away from network expansion and innovation. Some countries still rely extensively on existing Chinese equipment, making rapid transition costly and complex.

The proposal builds on earlier EU action. In 2020, the bloc introduced a voluntary security framework aimed at limiting the role of vendors perceived as high risk in 5G networks. Implementation has been uneven, largely due to the expense of replacing installed equipment.

Geopolitical considerations continue to shape the debate. The United States has already banned new approvals of Chinese telecom equipment and has encouraged European allies to follow suit. Within the EU, several governments are reassessing technology ties with Beijing as planning begins for future networks such as 6G.

The revised Cybersecurity Act will now be negotiated by EU governments and the European Parliament. The outcome will determine how far Europe is willing to go in prioritising technological sovereignty, even at the risk of higher costs and increased trade tensions.

Sources

Reuter