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EU to phase out high-risk technology targets Huawei and Chinese companies

According to a draft of a proposal released on Tuesday by the European Commission, the European Union intends to phase out equipment and components?from high risk suppliers in critical industries. This move is expected to impact Huawei and other Chinese technology companies.

The revisions of the EU Cybersecurity Act are a response to an increase in cyber attacks, ransomware, and concerns over foreign interference, spying, and Europe's dependency on technology from third-country suppliers.

The Commission of the 27-nation bloc did not mention any country or company.

Europe has however been hardening their stance towards the use Chinese equipment. Germany, for instance, appointed an expert committee to rethink its trade policy toward Beijing and ban the use Chinese components in future 6G networks.

The United States has banned the approval of new telecommunications gear from Huawei and ZTE by 2022, and encouraged Europe to follow suit.

NEW MEASURES CREATE MORE SAFETY, TECH SOVEREIGNTY, EU ?SAYS

In a press release, EU tech chief Henna Vikkunen stated that the Cybersecurity Package would allow the EU to not only better protect its critical supply chains (information and communication technology), but also combat cyber attacks in a decisive manner.

China's Foreign Ministry, in response to an earlier report on the plans, called the restriction of Chinese firms without legal basis "naked protectionionism". It urged the EU provide a fair and transparent business environment that is non-discriminatory for Chinese companies.

The new measures are applicable to 18 sectors that were identified by the Commission. These include detection equipment, connected vehicles and automated vehicles (including autonomous and connected cars), electricity supply systems, storage of electricity, water supply system, drones, and anti-drone systems.

The list also includes medical devices, surveillance technology, semiconductors, and cloud computing services.

In 2020, the Commission adopted a "toolbox" of security measures to limit the use of high-risk vendors like Huawei because of concerns over possible sabotage and espionage. Despite the high costs, some countries are still unable to remove high-risk devices.

The Commission's proposal on Tuesday stated that mobile telecom operators would have 36 months to remove key components from high-risk vendors after the publication of this list.

Later, the phase-out period for fixed networks including fibre optics, submarine cables and satellite networks will also be announced.

"This is a?important step to ensuring our European technological sovereignty and ensuring a higher level of safety for everyone," Virkkunen stated.

The draft proposal stated that restrictions on suppliers from countries with cybersecurity concerns would only be implemented after a risk analysis initiated by either the Commission or three EU member states. Any measures would be taken based on a market analysis and an impact assessment.

Before the updated Cybersecurity act can become law, it will need to be approved by EU countries and European Parliament within the next few months. (Reporting and editing by Joe Bavier; Foo Yunchee is the reporter)

(source: Reuters)