EU targets Chinese tech in critical infrastructure

The European Commission is set to unveil measures targeting “high risk” vendors in critical telecoms and solar systems, prompting a strong response from Beijing. China’s Foreign Ministry has condemned the reported plans to phase out Chinese-made equipment from the European Union’s critical infrastructure, describing the idea as “naked protectionism.”

According to a Financial Times report, the European Commission’s cybersecurity proposal would make an existing voluntary regime to restrict or exclude “high risk” vendors mandatory for EU member states. This move could potentially bar companies such as Huawei and ZTE from supplying equipment for telecoms networks, solar infrastructure, and other sensitive systems. The proposal is expected to be unveiled as part of an overhaul of the EU’s security and technology policy.

China’s Foreign Ministry has urged the EU to provide a “fair, transparent and non-discriminatory” business environment for Chinese firms, warning that restricting them without a legal basis would hinder technological progress and economic growth. Beijing has long denied accusations that its suppliers pose security risks and could be used to collect sensitive data.

The reported plan comes amid escalating trade tensions between China and the EU, which have clashed over issues such as industrial overproduction and protectionism. EU officials have launched probes into Chinese participation in European industries, including rail and wind power, and have raided the EU offices of security equipment manufacturer Nuctech.

The European Commission’s move is part of its so-called ‘de-risking’ strategy, aimed at addressing concerns over the security risks posed by certain vendors. Some telecom operators have warned that excluding major vendors could raise costs for consumers. The proposal is expected to be unveiled on Tuesday, and its implementation could have significant implications for the EU’s critical infrastructure and trade relations with China.

The EU’s decision to overhaul its security and technology policy reflects growing concerns over the potential risks associated with relying on equipment from certain vendors. As the EU and China continue to navigate their complex trade relationship, the outcome of this proposal will be closely watched by industry stakeholders and policymakers alike.

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