China called on the European Union to reconsider its proposed restrictions on network equipment suppliers from Chinese companies, describing the measures as discriminatory. The urging came during a news briefing in Beijing on Wednesday, amid ongoing negotiations over the EU’s Digital Networks Act.
The Digital Networks Act, introduced in January, aims to enhance cybersecurity by banning vendors classified as "high risk" from supplying telecommunications networks within the EU. While the legislation does not explicitly name companies, it is widely understood to target Chinese firms such as Huawei and ZTE. Once identified, telecom operators would have up to three years to remove equipment from these suppliers.
China’s Foreign Ministry expressed concern that such restrictions would harm not only Chinese companies but also the European economy. Ministry spokesperson Guo Jiakun stated that the EU’s approach could lead to missed opportunities in digital transformation and development, and negatively affect the confidence of international companies considering investment in Europe. Guo encouraged the EU to heed the opinions of various European sectors, which he described as rational voices opposing the ban.
Opposition to the proposed restrictions has also come from key European telecommunications leaders. CEOs from major operators including France’s Orange, Germany’s Deutsche Telekom, and Spain’s Telefonica signed an open letter on Tuesday outlining the financial impact of the ban. While the letter did not specifically reference Chinese suppliers, it warned that a blanket prohibition on certain non-EU vendors could impose up to 40 billion euros (approximately $46 billion) in replacement costs on the industry.
The current push for a ban escalated after the European Commission, the EU’s executive branch, recommended excluding Huawei and ZTE from mobile networks in 2023, citing security concerns. However, the commission reported insufficient progress among member states in implementing such exclusions. The United States has maintained a longstanding ban on Huawei equipment and has actively encouraged allied countries to adopt similar policies, citing risks that the technology could be used for surveillance.
Negotiations over the Digital Networks Act continue as the European Union seeks to balance security concerns with economic and technological considerations in its evolving digital policy framework.
