The European Commission is taking steps to limit the use of Chinese technology in green hydrogen production in Europe. By imposing new criteria for the second European Hydrogen Bank auction, projects will have to restrict the proportion of Chinese electrolysers to ensure a diversified supply chain and reduce the risk of dependency on China. The move has been welcomed by industry leaders like Jorgo Chatzimarkakis from Hydrogen Europe, who sees it as a positive step towards creating a conducive investment environment in Europe. The Commission's decision follows concerns about oversupply of Chinese electrolysers in the market, prompting the need for explicit criteria to promote European electrolyser supply chains. The new criteria will allocate subsidies from the Innovation Fund to support hydrogen production within the European Economic Area, incentivizing local manufacturing and innovation. In addition to technology restrictions, the Commission also introduced cybersecurity criteria for digital components in the second hydrogen auction. This requirement aims to ensure operational control and data storage within the EEA, with penalties for non-compliance. François Paquet from the Renewable Hydrogen Coalition commended the proactive approach of the Commission, highlighting the importance of creating demand for renewable hydrogen to complement the resilience criteria. Despite the positive reception of the criteria, challenges remain, including the funding gap for renewable hydrogen projects and the need for lead markets in green industrial goods. The future of green hydrogen production in Europe looks promising with the Commission's efforts to balance technology restrictions, cybersecurity measures, and industry development.