Germany and Spain are pushing back against European Commission proposals to ban Huawei and ZTE equipment across EU telecom networks under new cybersecurity rules. According to people familiar with ongoing negotiations, Berlin and Madrid are leading the opposition within the European Council to a draft plan that would introduce binding legislation at bloc level. The resistance is reported to be driven by concerns about potential retaliation from Beijing, as well as the practical and financial implications for telecom operators and for broader efforts to build out AI-related infrastructure. The European Commission’s proposal is framed as a cybersecurity measure intended to reduce risk from specific suppliers. However, the two countries are seeking changes or delaying steps in the legislative process, arguing that a blanket ban could carry external diplomatic and economic consequences. The reporting indicates negotiations are ongoing, with Germany and Spain working to influence the final shape of the rules before a decision is reached at EU level.