Key Takeaways
- The European Commission has proposed a new cybersecurity act that would force EU member states to remove Chinese companies Huawei Technologies and ZTE from their mobile networks.
- The proposal would require member states to comply within three years of adoption, pending approval by the countries themselves.
- If approved, the legislation could lead to further restrictions on Chinese companies in sensitive sectors, including connected vehicles, electricity and water supply, and cloud computing.
- The move could exacerbate tensions in the EU-China relationship, particularly given China’s focus on promoting "new productive forces" in these sectors.
- The proposal is part of a broader effort by the EU to address cybersecurity risks and protect its critical infrastructure.
Introduction to the Cybersecurity Act
The European Commission has unveiled a sweeping new cybersecurity act that aims to strengthen the security of the European Union’s (EU) digital infrastructure. As part of this effort, the commission is seeking to force EU member states to remove Chinese companies Huawei Technologies and ZTE from their mobile networks. This move is based on concerns about cybersecurity risks associated with these companies, which have been cited by the commission since 2020. Despite these concerns, only 13 of the 27 EU member states have taken action to remove Huawei and ZTE equipment from their 5G networks.
The Proposal and Its Implications
The new proposal would require EU member states to comply with the removal of Huawei and ZTE equipment from their mobile networks within three years of adoption. However, the legislation itself would first need to be approved by the countries themselves. If approved, the proposal could have significant implications for Huawei, ZTE, and other Chinese operators. The commission has published criteria that would allow it to designate a country as a cybersecurity threat, which would in turn make its companies off-limits in sensitive sectors. These sectors include connected vehicles, electricity and water supply and storage, cloud computing, medical devices, space services, and semiconductors.
Potential Consequences for Huawei and ZTE
The potential consequences for Huawei and ZTE are significant. If China is designated as a cybersecurity threat, its companies would be effectively shut out of these sensitive sectors. This could have a major impact on Huawei and ZTE’s business operations in the EU, and could also have broader implications for the EU-China relationship. The EU is a significant market for Chinese companies, and restrictions on their ability to operate in the region could lead to retaliation from Beijing. Furthermore, the move could also have implications for other Chinese companies operating in the EU, particularly those in the tech sector.
The Broader Context of EU-China Relations
The proposal is part of a broader effort by the EU to address cybersecurity risks and protect its critical infrastructure. The EU has been increasingly concerned about the risks posed by Chinese companies, particularly in the tech sector. The commission’s move is also seen as part of a broader effort to promote European companies and reduce dependence on non-EU suppliers. However, the move is likely to exacerbate tensions in the EU-China relationship, particularly given China’s focus on promoting "new productive forces" in these sectors. The EU and China have a complex and multifaceted relationship, with significant trade and investment ties. However, the EU has also been increasingly critical of China’s human rights record and its aggressive behavior in the South China Sea.
The Path Forward
The proposal will now need to be approved by EU member states, which could be a complex and time-consuming process. The commission will need to negotiate with member states to secure their approval, which could involve significant compromises and concessions. If approved, the legislation would mark a significant shift in the EU’s approach to cybersecurity and its relationship with China. The EU would be taking a more assertive stance on cybersecurity risks, and would be willing to take concrete steps to protect its critical infrastructure. However, the move could also have significant implications for the EU-China relationship, and could lead to retaliation from Beijing. As the proposal makes its way through the EU’s legislative process, it will be closely watched by companies, governments, and observers around the world.
