China Threatens EU with Retaliation Over Huawei and ZTE Ban
Beijing’s commerce ministry has formally submitted a 30-page document to the European Commission, warning that its draft Cybersecurity Act could trigger reciprocal measures against European companies in China.
China has formally threatened the European Union with retaliation if a new cybersecurity law leads to the exclusion of Chinese firms, including Huawei and ZTE, from European critical infrastructure.
The document, reported earlier by the South China Morning Post, explicitly warns that Beijing is prepared to invoke its Foreign Trade Law and State Council Supply Chain Security Regulations, legal frameworks allowing China to restrict trade and impose reciprocal bans on foreign companies.
What does the EU Cybersecurity Act propose?
The revised EU Cybersecurity Act, announced in January 2026, represents a significant shift in Brussels' approach to network security. It obliges member states to remove equipment from vendors deemed high-risk within three years of the law's implementation.
The act also enables the Commission to designate entire countries as 'cybersecurity threats,' leading to exclusions extending beyond telecoms into 18 critical sectors, including energy and IT. While not naming Huawei or ZTE explicitly, the intent is clear: to remove Chinese vendors from European networks.
The law does not name Huawei or ZTE explicitly, but the intent is unambiguous: EU Tech Commissioner Henna Virkkunen said it would give the bloc ‘the means to better protect our critical supply chains.’