Germany and Spain are resisting the European Commission's push to make Huawei and ZTE equipment bans binding across the EU. Berlin argues its existing national phase-out plan with major telecoms is the appropriate framework, noting Huawei still powers roughly 60% of German 5G radio sites. Spain points to active contracts, including Telefónica's Huawei 5G core deal running until 2030. Both governments warn that a bloc-wide ban would invite Chinese trade retaliation and drive up costs for Europe's AI infrastructure build-out, given that European alternatives Ericsson and Nokia are already at capacity. The European Council is expected to formally consider the binding legislation in the second half of 2026, with the debate now focused on timetables and national exemptions rather than the principle of exclusion.
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