China Warns EU Over Cybersecurity Act Targeting Chinese Firms

Severity: Medium (Score: 59.9)

Sources: Chinadaily.Cn, Scmp

Summary

China's Ministry of Commerce has issued a strong warning against the EU's proposed revision of its Cybersecurity Act, which could classify Chinese companies like Huawei and ZTE as 'high-risk suppliers'. The ministry stated that if the EU enforces measures to exclude these firms from critical sectors, it would retaliate with investigations and countermeasures against EU businesses. The proposed act aims to create a mandatory framework for EU member states to remove firms deemed security risks from their 5G networks and other high-tech industries. This marks a significant escalation in tensions between China and the EU, potentially impacting trade and global supply chains. The ministry has raised concerns that the act may violate WTO rules and disrupt economic ties between China and the EU. China remains open to dialogue but insists on countermeasures if discriminatory practices occur. The situation is evolving as both sides prepare for potential fallout from the proposed legislation. Key Points: • China threatens retaliation against the EU's proposed cybersecurity measures. • The EU's act could exclude Chinese firms from critical sectors, impacting trade. • China warns the act may violate WTO rules and disrupt global supply chains.

Key Entities

• China (country)
• Netherlands (country)
• Energy (industry)
• Telecommunications (industry)