EU cybersecurity plan to ban Chinese suppliers could cost €367.8 billion

A new study warns that the European Union's proposed Cybersecurity Act, which would bar Chinese suppliers from critical infrastructure, could cost the bloc €367.8 billion (US$431.4 billion) over five years. The report, released Wednesday by the China Chamber of Commerce to the EU (CCCEU), projects annual losses rising from €39.1 billion in 2026 to a peak of €93 billion in 2028, then plateauing at €91 billion in 2029 and €89.6 billion in 2030. Beyond direct hardware replacement costs, the study estimates €102.1 billion in social losses, including €88.3 billion from delayed digitalisation and green transition, and €3.3 billion in unemployment assistance. CCCEU chairman Liu Jiandong noted that due to Europe's interconnected digital value chains, cost pressures would affect the entire economy, especially small and medium-sized enterprises and end users.