The European Union is considering a proposal to ban the use of Chinese-made equipment in its telecommunications networks, according to a report by Bloomberg. The proposal, led by European Commission Vice President Henna Virkkunen, aims to turn a 2020 recommendation on excluding “high-risk” vendors from mobile networks into a binding legal requirement. This move is part of the EU’s efforts to address escalating trade tensions with China, which have been ongoing for over a year.

The proposed ban would apply to both mobile network gear and fixed-line infrastructure, including fiber optic and broadband expansions. EU member states that fail to comply with the regulation could face financial penalties and infringement proceedings. The European Commission is also exploring options to limit the use of Chinese equipment in future network expansions.

The EU’s concerns about Chinese tech giants Huawei and ZTE are centered around the potential risks they pose to the security of European telecommunications networks. While some EU member states, such as Sweden, have already banned the use of Chinese vendors in their 5G networks, others, including Germany and Finland, are considering tighter restrictions.

In response to the proposed ban, China’s Foreign Ministry has criticized the EU’s approach, stating that it “severely violates market principles and the rules of fair competition.” The Chinese government has accused the EU of protectionism, while the EU has expressed concerns about China’s industrial overproduction.

The latest development marks a significant escalation in the trade tensions between the EU and China. Earlier this year, the Dutch government seized control of a China-owned chipmaker, citing risks to Europe’s technological security. China retaliated by banning exports of the company’s chips, prompting the Dutch government to consider handing back control.

The proposed ban on Chinese-made equipment is part of a broader effort by the EU to reduce its dependence on Chinese technology and promote the development of European alternatives. The European Commission is also seeking to encourage non-EU countries to join the ban, forming a coalition against Chinese telecom suppliers. As the trade tensions between the EU and China continue to escalate, the outcome of the proposed ban remains uncertain, with significant implications for the future of telecommunications in Europe.