China Chamber of Commerce: EU Ban on Chinese Telecom Equipment Could Lead to €367.8 Billion Loss

A study released by the China-Europe Chamber of Commerce on Wednesday, May 6, representing the interests of Chinese enterprises in Europe, warns that if the European Union follows Brussels' proposed plan to exclude Chinese telecom equipment suppliers from the European market, the 27 EU countries could face cumulative economic losses of up to €367.8 billion by 2030.

The research was conducted by international consulting firm KPMG at the request of the China-Europe Chamber of Commerce. The report states that once these EU measures are implemented, "they will result in cumulative economic losses amounting to €367.8 billion for EU member states within five years."

The estimated costs include not only telecommunications operators but also the broader economic system, covering additional expenses from replacing existing equipment, the cost of switching to more expensive and potentially less efficient alternatives, as well as administrative, legal fees and delays caused by forced transitions.

The study shows Germany will be the hardest-hit country, with expected losses exceeding €170 billion—nearly half of the total; France and Italy are projected to suffer approximately €46.3 billion and €36.5 billion respectively.

Speaking to the media about the report, Liu Jiandong, President of the China-Europe Chamber of Commerce, said, "Strengthening cybersecurity and protecting critical infrastructure are reasonable and widely shared goals." However, he emphasized the challenge lies in "finding the right balance."

He criticized the European Commission's approach as being "politicized" rather than grounded in "objective and verifiable standards."

In January this year, the European Commission proposed, during the revision of the EU Cybersecurity Act, allowing a ban across the EU on foreign telecom equipment suppliers deemed to pose risks to cybersecurity—including Chinese companies Huawei and ZTE.

The proposed reforms still require approval from EU member states and the European Parliament.

The EU aims to further strengthen these restrictions. Previously, in 2023, the EU had recommended that member states exclude Huawei and ZTE from their 5G networks, but so far, fewer than half of the member states have implemented this recommendation.

Source: rfi

Original article: toutiao.com/article/1864483927994368/

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