The EU could lose nearly €370 billion due to the exit of Chinese tech suppliers
A report jointly released by the European Chamber of Commerce in China and KPMG indicates that if the proposed revision to the EU's Cybersecurity Act is adopted, forcing Chinese suppliers out, the EU could face losses as high as €36.78 billion.
The report points out that the draft amendment to the EU Cybersecurity Act would impose restrictions based on the supplier’s country of origin, rather than on technical risk assessment.
The report states: "If the EU's proposed Cybersecurity Act revision mandates replacing Chinese suppliers across 18 critical sectors, it could result in nearly €36.78 billion in losses."
The report notes this represents a cumulative loss over five years for EU member states. Citing Liu Jiandong, President of the European Chamber of Commerce in China, the impact of this regulatory revision may extend far beyond the information and communications technology sector, affecting industries such as energy, telecommunications, and industrial manufacturing—sectors all reliant on secure, compatible, and continuously updated digital systems.
Liu Jiandong said: "The criteria for identifying so-called 'high-risk suppliers' appear to be politically motivated." He added that such measures could undermine the EU's digital competitiveness and economic security.
The report highlights that direct losses from equipment replacement, dismantling, and asset write-offs will account for the largest share—40%, or €146.2 billion. Social losses—including reduced efficiency and delays in digitalization—will amount to 28% (€102.1 billion). Indirect losses will reach 22% (€81.5 billion), while legal costs related to dispute resolution, re-certification, and compliance will make up 10% (€38.1 billion).
The report says Germany, France, and Italy will be the most severely affected EU member states.
Source: sputniknews
Original article: toutiao.com/article/1864515273693248/
Disclaimer: This article reflects the personal views of the author