The European Commission tries to balance before inaugurating a new phase in its relationship with the Asian giant. On the one hand, it intensifies its presence in diplomatic forums in China; on the other, it progressively closes access for companies originating from Beijing to community funds. Now, Brussels has given the green light to the veto of certain electronic devices used in numerous energy systems of European projects and which, to a large extent, are produced by the technology group Huawei. The decision marks a new chapter in the community strategy to reduce risks in sectors considered critical, in a context of growing geopolitical and technological rivalry.
The move is not minor. It represents one more step in the policy of “reduction of dependencies” that the European Union has long been designing against actors considered high-risk. The energy transition, one of the pillars of the European project, thus intersects with digital security and technological sovereignty, two areas that have gained central relevance after the pandemic, the war in Ukraine, and the hardening of global competition.
“Our risk assessment confirmed the threats, including the manipulation of electrical parameters… which in practice could mean a blackout,” a European Commission spokesperson said this Monday, justifying the decision adopted within the framework of the Cybersecurity Act, which allows the Executive to draw up a list of possible high-risk third countries. “We recommend that Member States exclude these companies from their connectivity infrastructure,” he stated during the daily press conference.
A silent risk in the energy heart
This time, the focus has been placed on the devices used to transform direct current, usually generated by solar panels, into alternating current, which is the one used in domestic and industrial consumption. Electric inverters—also known as inverters—are responsible for carrying out this conversion, an essential process for the generated electricity to be integrated into the grid and used by consumers.
Without these devices, the energy transition would be unviable. However, their increasing digitalization and internet connection also make them possible entry points for cyberattacks. Brussels' concern lies in the fact that remote manipulation of these systems could alter the functioning of the electrical grid, generate instability, or, in the worst-case scenario, cause supply interruptions.
This type of equipment, now under scrutiny, is used in solar installations as well as in wind farms, energy storage systems —such as batteries— and even in data centers. After having detected cyberattack attempts originating from actors linked to China, Russia, North Korea, or Iran, the European Union has decided this week to leave them out of projects financed with community funds.
The fear is clear: that these products end up serving as a geopolitical lever for third countries, capable of exploiting European technological dependence in a context of growing international tensions.
Shield the supply chain
During the presentation of its new regulation aimed at strengthening the continent's cybersecurity, the European Commission had already warned of the need to incorporate supplier-related risks into the analysis of supply chains. In particular, it stressed the importance of assessing dependence on external actors and possible foreign interference from "third countries".
On this line, a mandatory reduction of risks in mobile networks and critical digital systems was promoted, especially in relation to those companies considered "high risk". The case of electric inverters now expands this approach to the energy sector, a sector increasingly digitized and, therefore, more exposed to hybrid threats.
With the announced measure, projects benefiting from European funding must ensure they meticulously comply with the bloc's new cybersecurity parameters. Although Brussels has shown some flexibility with initiatives already underway, the restrictions are expected to be fully in force by 2027.
Sector Reaction: Between Support and Opportunity
From the industry, the decision has been received with a mix of support and pragmatism. Various actors consider it a necessary step to “safeguard European energy security”, while emphasizing that community manufacturers already have sufficient capacity to cover demand in the different market segments.
Furthermore, it is interpreted as an opportunity to strengthen European industry and reduce dependence on external suppliers, especially at a time when industrial policy has returned to the center of the community debate.
The measure affects the entire set of European Union financing instruments, including the resources of the European Investment Bank and the European Investment Fund. Consequently, these funds may not be used for energy projects that incorporate equipment from countries considered high-risk.
“This decision sends a clear message about the security of critical infrastructures in Europe. Investors are the heart of any solar and energy storage facility and, as internet-connected devices, they represent a potential entry point for cyberattacks,” said the Secretary General of the European Solar Manufacturers Council, Christoph Podewils.
A warning with political implications
The decision also has direct implications for several member states, including Spain, which maintains existing contracts with Huawei in certain technological areas. During the last quarter of last year, the Community Executive already issued a warning to Madrid regarding the risks associated with certain dependencies in sensitive systems, such as the storage of telephone interceptions.
The European Commission has on several occasions identified companies such as Huawei and ZTE as providers with “significantly higher risks” compared to other 5G market players. Consequently, it has reiterated its commitment to limit their access to European funding and protect the continent's communication networks.
Since December, Brussels has been tightening the conditions for access to its economic resources. The objective is to prevent providers considered high-risk from benefiting from programs such as Horizon Europe or the Digital Europe Programme when there is suspicion that they may undermine the economic security of the bloc.
Diversification as a strategy
In parallel, the European Union is exploring formulas to incentivize companies in strategic sectors to diversify their supply chains. One of the options on the table is to require the presence of at least two different suppliers in critical projects, in order to reduce exposure to a single dominant player.
The logic is clear: to prevent excessive dependence from becoming a structural vulnerability. This strategy, however, poses challenges in terms of costs, efficiency, and competitiveness, especially in sectors where production is highly concentrated globally.
“Cybersecurity threats are not simple technical challenges; they are strategic risks to our democracy, economy, and way of life,” warned the Vice-President of the Community Executive at the time, Henna Virkkunen.
A delicate balance with Beijing
Brussels' regulatory offensive comes at an especially delicate moment in relations with China. In just two weeks, the European Union will hold the second EU-China conference, a forum that aims to serve as a platform for an "independent, open, and unrestricted" dialogue on the future of the bilateral relationship.
The meeting will bring together officials, academics, business leaders, and geopolitical experts, in an attempt to keep communication channels open despite the hardening of positions. The European Union is thus walking a fine line: reinforcing its strategic autonomy without closing the door to cooperation with one of the world's leading economic powers.
The tension between security and openness, between protection and interdependence, defines the current moment of European politics. And decisions such as the veto of certain technological devices reflect the extent to which Brussels is willing to prioritize resilience against emerging risks.
In this context, the technological race with China and the competition with the United States will continue to set the community agenda. The energy transition, far from being a purely technical process, is consolidating itself as a key area in the dispute for global power.