The European Union is considering a law to phase out Huawei and ZTE equipment from the bloc’s telecommunications networks

The European Commission is stepping up efforts to strengthen the security of Europe’s telecom networks by urging member states to phase out equipment from vendors such as Chinese tech giants Huawei and ZTE from 5G and next-generation networks, Bloomberg reported, citing anonymous sources.

The European Commission recommended in 2020 that member states stop using technology from “high-risk” vendors like Huawei and ZTE, and now its vice president, Henna Virkkunen, is seeking to turn that recommendation into regulation, Bloomberg reported.

Virkkonen’s proposal could push EU countries to follow the Commission’s security directives more closely. If the recommendations become legally binding, member states that ignore the rules could face infringement measures and even financial penalties, the report said. Virkkunen is looking to limit Chinese vendors’ involvement in fiber network projects amid pressure for faster broadband deployment.

Huawei and ZTE did not respond to requests for comment.

The move comes amid a broader effort to limit China’s influence in key infrastructure as the European Union’s relations with the world’s second-largest economy deteriorate. Last year, Germany’s top security official said that starting in 2026, the country would ban the use of key components from Chinese companies ZTE and Huawei. In addition, Finland reportedly plans to expand its ban on the use of Huawei components in 5G networks.

In recent years, the United States has persuaded European allies such as the United Kingdom and Sweden to restrict or ban Huawei equipment over concerns that Beijing could exploit it for cyber espionage or disrupting vital communications.