China Urges EU to Heed Cybersecurity Law Concerns for Global Supply Chain Stability

Stock News04-20

On April 20, China's Ministry of Commerce responded to inquiries regarding the EU's revised draft Cybersecurity Act. The ministry's spokesperson stated that China had recently submitted formal comments to the European Commission concerning the proposed amendments. In its feedback, China recommended the removal of provisions related to "countries of cybersecurity concern" and "non-technical risks" from the draft. It also called for the deletion or substantial revision of criteria for identifying "high-risk suppliers" and associated restrictive measures.

The spokesperson emphasized that the EU should carefully consider China's submitted comments and proposed amendments, adhere strictly to WTO regulations, and avoid implementing discriminatory restrictions that could undermine the stability and smooth operation of Sino-European and global industrial and supply chains. China will closely monitor the progress of the draft's revision and remains open to dialogue with the EU on the matter. Should the EU proceed with enacting the law in its current form and apply discriminatory treatment to Chinese companies, China would be compelled to take corresponding countermeasures.

The spokesperson further warned the EU not to underestimate China's firm resolve to safeguard national interests, protect the legitimate rights of Chinese enterprises, and prevent a regression in China-EU economic and trade relations.

In its detailed comments submitted on April 17, China expressed serious concerns and outlined its official stance. It criticized the draft for using cybersecurity and supply chain security as pretexts to introduce highly subjective "non-technical risk" factors. Specifically, the draft identifies "countries of cybersecurity concern" and "high-risk suppliers," and proposes to exclude listed countries and suppliers from EU supply chains across 18 sectors—including energy, transportation, and ICT—in what China views as a typical case of politicizing economic issues and overstretching the concept of security.

China's submission highlighted several problems with the draft: First, it potentially violates fundamental WTO principles such as most-favored-nation treatment and national treatment, contravening multiple agreements including the General Agreement on Tariffs and Trade 1994, the General Agreement on Trade in Services, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Technical Barriers to Trade, as well as conflicting with the EU’s commitments on trade in services. Second, the draft may exceed the EU’s legal authority by encroaching on member states’ exclusive jurisdiction over national security affairs. Third, it could cause substantial harm to China-EU economic relations, severely disrupt global industrial and supply chains, and hinder the EU’s own digital and green transformation efforts.

China reiterated its recommendations that the EU delete the clauses concerning "countries of cybersecurity concern" and "non-technical risks," and either remove or substantially revise the standards for designating "high-risk suppliers" and related restrictions. It urged the EU to treat China’s comments with high seriousness, abide by WTO rules, and refrain from discriminatory measures to ensure the stable and uninterrupted flow of Sino-European and global supply chains.

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