The European Union (EU) has formulated plans to progressively phase out components and equipment sourced from "high-risk" suppliers within critical infrastructure sectors, a move that is expected to impact Huawei significantly. The European Commission put forth this proposal during the revision of the EU Cybersecurity Act, driven by the recent surge in cyberattacks across the EU and mounting concerns over the growing dependence on technology suppliers from outside the EU.

While not explicitly naming any country, it is evident that Europe has, in recent years, intensified its scrutiny of Chinese technologies. Huawei, in response, criticized the legislative proposal, arguing that it is based on the supplier's country of origin rather than on concrete facts and technical standards. The company contends that such an approach violates fundamental EU legal principles and obligations under the World Trade Organization, and has stated that it will reserve the right to take legal action to defend its interests.

The new measures are set to encompass 18 critical sectors. Mobile operators will be mandated to phase out key components from high-risk suppliers within 36 months of the publication of the relevant list. Additionally, restrictions on suppliers from countries deemed to pose a risk will come into effect following a thorough evaluation process.

The telecom industry's lobbying group has issued a warning, stating that the proposed measures will significantly increase the industry's operational burden. It is important to note that the revised bill must still undergo negotiations with EU national governments and the European Parliament before it can be enacted into law.