The European Commission is assessing various ways to compel member states to phase out Chinese companies Huawei and ZTE from their telecommunications networks, sources told Bloomberg News.
The Commission reportedly aims to transform its 2020 recommendation--which called for the exclusion of high-risk suppliers from telecom networks--into a legally binding requirement.
Currently, decisions regarding telecommunications infrastructure are made at the national government level. However, the Commission's proposal would oblige EU countries to align with its security guidelines. Should these recommendations become legally binding, member states that fail to comply could face infringement proceedings and financial penalties.
The EU's push to distance itself from Huawei and ZTE stems from concerns that handing over control of critical national infrastructure to companies closely linked to Beijing could jeopardize national security interests.
The Commission has declined to comment on the potential ban.
