US pushes NATO allies to use defence spending to replace Huawei equipment: Here's why

NATO allies under US President Donald Trump's administration have reportedly been asked to direct defence spending toward efforts to replace components from Huawei in their networks and critical infrastructure. The move comes as the US government has long viewed Huawei and other Chinese vendors as potential national security risks and has sought to exclude them from American telecommunications networks.

Joshua Young, the US State Department's China Coordinator, reportedly told officials in Brussels in May that they should use defence-related funding received under NATO's spending benchmark to remove Huawei equipment and replace it with products from alternative vendors.

Most NATO allies had previously agreed in 2025 to increase spending on core defence needs to 3.5 percent of gross domestic product (GDP), with an additional 1.5 percent allocated to defence-related investments. The changes followed Trump's demand that allies shoulder a larger share of the alliance's expenditure by investing 5 percent of their economic output in defence and military capabilities.

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Opposition to banning Chinese suppliers from telecommunications networks as part of a broader push to strengthen oversight through revisions to the European Union's cybersecurity framework has reportedly been led by Germany and Spain. Officials from Berlin and Madrid have raised concerns about potential retaliation from Beijing if a widespread ban on Chinese suppliers is imposed. However, European authorities have previously designated Huawei and ZTE as "high-risk suppliers" for telecom networks.

The issue of completely removing Huawei equipment from critical infrastructure has surfaced repeatedly in Germany in recent years. According to Bloomberg, the German government has considered using public funds to help Deutsche Telekom AG and other telecom operators replace Chinese-made equipment in their networks.

Given the significant influence the Chinese government can exert over private companies through regulation, many security officials argue that caution toward Chinese technology providers is warranted. Reports suggest that under President Xi Jinping, the distinction between the public and private sectors has become increasingly blurred, with experts noting that the Chinese Communist Party has sought to expand its influence over private industry.

US officials have frequently pointed to broadly worded Chinese laws that they believe could compel Huawei to assist the government with intelligence-gathering efforts. The effort to remove Huawei equipment from critical communications infrastructure has continued across multiple US administrations. Former President Joe Biden maintained many of the restrictions imposed on the company and introduced additional measures that further limited Huawei's access to key technologies and markets.