EU regulators have drafted the Cyber Resilience Bill, mandating the removal of hardware and software from vendors deemed “high‑risk” in critical sectors such as energy, transport, health and public administration. The proposal targets equipment like 5G gear, cloud‑computing hardware and semiconductors, and directly challenges Huawei’s market presence in Europe, prompting the company to label the move unfair and discriminatory.
What the EU Cyber Resilience Bill Requires
The draft law obliges governments and public‑sector operators to assess the risk of every hardware and software component used in essential services. If a supplier is classified as high‑risk, the legislation mandates a phased withdrawal of its products, with transition periods that can extend up to five years depending on the sector. The goal is to protect digital sovereignty and guard against espionage or sabotage.
Huawei’s Official Reaction
Huawei’s spokesperson described the EU approach as unjustified, arguing that it undermines a fair and open market. The company warned that the measures could limit competition and restrict the development of innovative services across Europe.
Huawei’s Global Presence
Huawei employs roughly 180,000 people in about 170 countries. It holds around 20 % of the global smartphone market, making it the world’s second‑largest smartphone vendor after Samsung, and it retained the top spot in the Chinese market throughout 2025.
Background of EU Restrictions on High‑Risk Vendors
EU member states have previously imposed bans and limits on Huawei’s 5G equipment, citing security concerns. The new draft expands the scope beyond telecommunications to include a broader range of critical sectors, reflecting a growing consensus that supply‑chain risk extends across multiple technology domains.
Potential Impact on Europe’s Tech Ecosystem
If adopted, the bill could trigger extensive supply‑chain re‑engineering. Telecom operators, cloud providers, and other users of Huawei hardware may need to source alternatives from vendors deemed low‑risk, such as European or U.S. manufacturers. While this shift could boost domestic semiconductor and networking industries, it may also raise costs and delay the rollout of next‑generation services.
Geopolitical Drivers Behind the Proposal
The initiative emerges amid heightened tensions between the West and China over technology standards, data governance, and intellectual‑property enforcement. By targeting “high‑risk” suppliers, the EU aims to reduce reliance on non‑allied technology providers, aligning with similar strategies pursued by other Western governments.
Industry Outlook and Next Steps
The draft will be discussed by EU member states and the European Parliament in the coming months. Implementation is expected to begin with the most sensitive sectors, such as energy‑grid control systems and public‑safety communications. Huawei will need to navigate the evolving regulatory landscape while continuing to compete in smartphones and enterprise solutions.
