On May 27th, local time, Bloomberg reported, citing sources familiar with the matter, that Germany and Spain are leading efforts to oppose a plan proposed by the European Commission. This plan aims to ban Chinese technology suppliers from participating in telecommunications network construction, as part of new cybersecurity regulations.
Sources familiar with the situation said that officials from Germany and Spain wish to retain decision-making power at the member state level. They also express concerns about banning Chinese suppliers products at the EU level. These officials believe that such measures could lead to countermeasures from China. Additionally, they noted that Germany and Spain have warned that such bans could increase the costs associated with building artificial intelligence infrastructure in the EU.
Previously, the European Commission had listed several Chinese companies as so-called high-risk suppliers of telecommunications networks. Brussels has urged its member states to exclude these companies from being involved in communication infrastructure projects. Although the decision-making power regarding infrastructure construction lies with each government, the European Commission is trying to strengthen regulations by revising the Computer Security Act (CSA).
The revised bill will expand the scope of cybersecurity assessments, taking into account the risks posed by foreign governments and the risks of dependence on certain suppliers. Additionally, the recommendations of the European Commission will thus become legally binding across the entire EU.
April 29, 2026, Brussels, Belgium – Headquarters of the European Commission. IC Photo
Bloomberg notes that European governments are currently caught in a dilemma between the great power games between China and the United States. On one hand, they wish to maintain trade relations with China. On the other hand, they face pressure to scrutinize their critical infrastructure from external sources.
German Chancellor Merz previously claimed that Germany relies too heavily on China. However, this year he announced that he would work hard to implement a new initiative aimed at strengthening German-China relations. In addition, the European Union plans to propose a temporary lifting of sanctions against a Chinese chip supplier, in order to stabilize Europes automotive supply chain.
Over the years, lawmakers in the United States and Europe, along with so-called security experts, have been concerned that Chinese companies might install backdoors in their devices, thereby exposing European citizens personal data to unauthorized access. Chinese companies have denied these false accusations and stated that excluding suppliers based solely on their country of origin violates the basic legal principle of fairness within the EU.
A spokesperson for the European Commission refused to comment on the specific positions of individual member states. However, he insisted, Europe must not tolerate its strategic networks being exposed to threats from high-risk suppliers.
The European Commission estimates that European mobile communication companies will need to invest an additional €3.4 billion to €4.3 billion over the next three years if they switch to new technologies.
In fact, the Hong Kong-based South China Morning Post cited a recent report as saying that the EUs unreasonable demands for many industries to dismantle and replace a large number of Chinese equipment will result in an astonishing cost of up to 367.8 billion euros for the EU within the next five years.
According to a report jointly released by the China Chamber of Commerce in the EU (CCCEU) and KPMG, the high cost of this legislation is mainly due to the need to dismantle and replace a large number of Chinese hardware devices. The cost alone could reach up to 146.2 billion euros. Other costs include resource reallocation, service interruptions, employment adjustments, and legal fees.
The revised Cybersecurity Act proposed by the European Commission in January this year aims to restrict the use of Chinese devices in 18 critical areas. These areas include detection devices, connected and automated vehicles, power supply and storage systems, water supply systems, as well as drones and anti-drone systems. Additionally, cloud services, medical equipment, surveillance devices, aerospace services, and semiconductors are also classified as critical areas.
A spokesperson for the German Interior Ministry stated that discussions regarding the Cybersecurity Act are still underway. He also noted that negotiations between various departments have begun this week. Representatives of the Spanish government expressed their support for amending the law, and they believe that EU member states must continue to have appropriate rights to participate in decisions regarding whether a particular country, supplier, or product constitutes a structural risk.
Bloomberg reported that Spanish Prime Minister Sánchez visited China four times over a period of four years, actively seeking investment from China in areas such as electric vehicles and renewable energy.
This, of course, caused discomfort in the United States. Reuters reported on May 27 local time that U.S. Ambassador to Spain Benjamin Leon deliberately strained Sino-US relations. He stated that Spain must be extremely cautious when deepening its relations with China, in order to prevent China from gaining control over key areas such as data, defense, and telecommunications. These are precisely the areas where China attempts to establish its dominance.
Additionally, according to people familiar with the situation, despite differences within the ruling coalition and among various departments responsible for related matters, the German government has also joined in its efforts to establish contacts with China.
In 2024, the German government decided, based on so-called national security considerations, to remove components from Chinese companies 5G mobile communication networks by the end of 2026.
Previously, in response to the EUs efforts to suppress Chinese companies, Lin Jian, a spokesperson for the Chinese Ministry of Foreign Affairs, stated that Chinese companies have long operated legally and in accordance with regulations in Europe. They have provided high-quality products and services to European citizens, and have also made positive contributions to the economic and social development as well as employment opportunities in Europe. Without any legal basis or factual evidence, imposing administrative restrictions or even banning companies from participating in the market is a serious violation of market principles and fair competition rules.
Lin Jian pointed out that it has been proven that the forced removal of high-quality and secure equipment by certain countries from China Telecom has not only delayed their own technological development, but also caused huge economic losses. Turning economic and trade issues into security-related issues or political issues will hinder technological progress and economic development. This is a situation that harms both others and oneself.
