The Commission also intends to “reflect this decision in all relevant EU funding programmes and instruments”. A report finds that the current situation would create a clear risk of persisting dependency on high-risk suppliers in the internal market with potentially serious negative impacts on security for users and companies across the EU and the EU’s critical infrastructure.
Here is the official press release: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3309
I don’t know about banning. The text sounds a bit like it’s voluntary.