Local Time: July 22, 2026 (Brussels) — According to a formal research report released by GSMA Intelligence, the think tank of the Global System for Mobile Communications Association, the European Union plans to replace Chinese equipment under its revised draft Cybersecurity Act, citing the need to avoid "high-risk suppliers."

According to related reports, if this plan is implemented, the EU will incur losses ranging from €30 billion to €40 billion—equivalent to approximately RMB 308.4 billion—about three to four times higher than the EU’s previous official estimates. In addition to the direct costs of dismantling and replacing equipment (€30–40 billion), further costs of around €8.5 billion are expected between 2027 and 2030 due to reduced market competition and rising equipment prices.

The EU’s earlier estimated cost of €10 billion to €13 billion clearly represents a severe underestimation. GSMA’s calculation of €30–40 billion in direct costs stems from the fact that the EU authorities had previously only accounted for mobile networks (€16–22 billion), while GSMA expanded the scope to include the entire communication network infrastructure—covering fixed networks (€5 billion) and transmission networks (€9–12 billion).

Replacing communication equipment is far from a simple “pull out the old, plug in the new.” Operators must conduct site re-surveys, adapt software, migrate data, adjust spectrum parameters, and complete security testing. The systemic reconstruction across 27 member states involving hundreds of thousands of sites involves engineering complexity and hidden costs that far exceed mere equipment procurement prices.

The European telecom industry already faces sluggish revenue growth and heavy capital expenditures. Forcing operators to prematurely scrap functional equipment will inevitably lead to significant reductions in future investments over the next decade in areas such as standalone 5G networks and industrial internet—slowing down the EU’s digital transformation by several years.

Even more damaging is that operators can only pass on these costs by raising phone bills, broadband fees, and IoT service charges. This means that the politicians’ lofty slogans of “security autonomy” on conference tables will ultimately be paid for by millions of ordinary Europeans and small and medium-sized enterprises—increasing the burden on daily life and weakening the global competitiveness of European businesses.

Knowing the high cost, why does the EU still insist on pushing forward? Fundamentally, this is the outcome of “politics prioritized over economics.”

For years, the United States has exerted continuous pressure, using transatlantic intelligence sharing and NATO defense cooperation as leverage to compel Europe to align with it in building supply chain barriers against China.

Europe itself suffers from persistent anxiety over “technological sovereignty,” attempting to protect domestic vendors through industrial support—yet ignoring the fact that domestic production capacity is fundamentally incapable of filling the market gap.

Conservative factions within the EU have banded together to push this legislation forward. Major powers like Germany and France, seeking to avoid political blame, have chosen compromise and retreat. Politicians gain short-term political capital, but leave behind massive financial burdens and industrial contraction for the sector.

In short, GSMA’s report delivers a sobering warning. The EU’s attempt to purge equipment under the guise of “security” overlooks the fundamental reality that communication networks are the foundational infrastructure of the physical economy. Turning economic and trade issues into security and political ones not only fails to deliver real security, but instead creates massive economic deficits, widening digital divides, and declining industrial competitiveness—ultimately forcing Europe to bear incalculable long-term costs.

These ostensibly noble and polished European politicians, beneath their bright façade, harbor deep political corruption.

Original Source: toutiao.com/article/1871643950550020/

Disclaimer: The views expressed in this article are solely those of the author.