Beijing’s Lobbying Offensive on the EU Cybersecurity Act: A Costly Proposition
The China Chamber of Commerce to the EU (CCCEU) has released a study, conducted by KPMG, which estimates the financial impact of phasing out Chinese suppliers from critical EU sectors due to the European Commission’s Cybersecurity Act. The figure is staggering—€367.8 billion ($432.83 billion) between 2026 and 2030.
Key Points:
- The Cybersecurity Act aims to establish a binding regime for restricting Chinese telecoms suppliers, expanding high-risk supplier exclusions across 18 sectors.
- The study breaks down the cost into infrastructure replacement, operational disruption, lost interoperability, and productivity drag.
- It assumes current Chinese supplier penetration will be replaced by European, Japanese, and Korean alternatives over the specified period.
- While the figure is substantial, it should be interpreted as a self-interested advocacy position from CCCEU.
- The EU’s internal cost analysis is expected to produce a different number when published.
The study highlights the challenges of replacing Chinese legacy chip and telecoms hardware at scale, particularly where alternatives are not readily available. This structural difficulty could result in significant replacement costs, with the legacy semiconductor issue alone accounting for tens of billions across the modeled period.