(Yicai) Jan. 22 -- Chinese officials and Huawei Technologies have voiced strong opposition to the European Union’s plan to expand the scope of its Cybersecurity Act beyond fifth-generation wireless technologies, warning that excluding companies from the market without evidence and on the basis of non-technical standards seriously violates market principles and fair competition.

The comments came after the European Commission on Jan. 20 published a draft amendment to the Cybersecurity Act proposing the mandatory, phased removal of information and communications technology equipment and components supplied by entities labeled as “high-risk suppliers.” The measures would apply to several critical industries, including telecommunications, energy, and healthcare.

Although the draft does not explicitly name any country or company, industry observers believe it will have a tangible impact on Chinese technology firms such as Huawei and ZTE.

Following the release of the draft, a Huawei spokesperson said the legislative proposal to restrict or exclude non-EU suppliers based on country of origin rather than factual evidence and technical standards “contradicts the fundamental legal principles of fairness, non-discrimination, and proportionality upheld by the EU, and does not comply with the EU’s obligations under the World Trade Organization framework.”

In recent years, Europe has intensified scrutiny of Chinese technology. Germany, for example, has appointed an expert committee to reassess its trade policy toward China and has decided not to use Chinese components in future 6G telecommunications networks.

Guo Jiakun, a Chinese foreign ministry spokesperson, said yesterday that China is gravely concerned about the EU’s latest cybersecurity package, which he described as an attempt to forcibly de-risk mobile network supply chains.

“Facts prove that in a handful of countries, phasing out quality, safe, and secure Chinese telecom equipment not only stifles digital and cyberspace advancement, but also causes huge economic loss,” Guo said. “This not only gravely hinders the EU’s technological progress and economic growth, but also tarnishes its reputation for an open market and saps foreign companies’ confidence in investing in the EU.”

Yicai noted that the proposed cybersecurity policy significantly broadens its scope beyond 5G networks, extending from hardware to software and even certain artificial intelligence models. The measures would cover 18 EU-designated critical sectors, including telecommunications networks, cloud services, medical devices, surveillance equipment, semiconductors, water supply systems, power supply and storage systems, drones and anti-drone systems, as well as connected and autonomous vehicles.

Under the draft, mobile operators would be given 36 months to gradually phase out key components from their networks after the publication of a “high-risk suppliers” list. Timelines for fixed networks, fiber optics, submarine cables, and satellite networks would be determined separately.

The EU has stressed that the draft does not target any specific country or company, and that related measures would only be launched after a formal risk assessment that takes into account market impact and implementation costs. Procedurally, the revised Cybersecurity Act must still be discussed with member state governments and the European Parliament in the coming months and can only take effect after consensus is reached among the three parties.

Editor: Emmi Laine