⚖️ EU removing Chinese hardware from networks

In partnership with

EU Moves to Limit Huawei and ZTE in Telecom Networks

The European Commission is considering turning its 2020 guidance on “high-risk” vendors into legally binding rules, urging member states to phase out equipment from Huawei and ZTE in 5G and next-generation telecom networks. The proposal, championed by EC Vice President Henna Virkkunen, could require EU nations to comply under the threat of infringement procedures and financial penalties. The move is part of a broader effort to secure critical infrastructure and reduce reliance on Chinese technology amid rising geopolitical tensions. Several EU countries, including Germany and Finland, have already taken steps to restrict Chinese vendors, signaling a shift toward stricter controls across the bloc.

Telecom Security and Regulatory Risk

For founders and startups in the telecom and tech sectors, the EU’s potential regulation illustrates how geopolitical considerations are increasingly shaping technology standards. Even if your company doesn’t directly deal with Huawei or ZTE, supply chain dependencies could be affected by regional security policies. The EU’s push also signals that governments are willing to enforce compliance through financial penalties, creating both risk and opportunity for startups that can offer alternative, “trusted” telecom solutions. Observing patterns in EU regulations can provide a predictive lens for how other jurisdictions, including the U.S. and U.K., might tighten their own infrastructure security rules in the near future.

Planning for Compliance and Market Access

Startups involved in telecom infrastructure, 5G deployment, or network hardware should proactively assess their vendor relationships and technology stack to ensure compliance with emerging EU rules. Companies relying on high-risk suppliers may need contingency plans to replace equipment or components to maintain market access. Additionally, startups offering alternative equipment, software, or security solutions could find increased demand as European operators seek compliant options. Founders should engage early with regulatory guidance, consider certification processes, and anticipate that compliance may become a competitive differentiator—being “trusted and secure” could open doors to contracts that others cannot pursue.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more