• EU proposals to tighten cybersecurity by phasing out equipment from Chinese suppliers could lead to costs exceeding $400 billion over the next five years.
  • According to a KPMG study for the Chinese Chamber of Commerce to the EU, forced replacement of Chinese suppliers in 18 critical sectors would cost the Union €367.8 billion between 2026 and 2030.
  • The hardest-hit sectors would be energy and telecommunications, with Germany bearing the largest burden at €170.8 billion.
  • Affected Chinese companies include Huawei and ZTE, and Beijing threatens countermeasures if clauses on high-risk states are not removed.
  • The European Commission has recommended limiting the use of Union funds for projects involving procurement from high-risk suppliers.

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