EU plan to phase out Chinese tech could cost bloc over $400 billion, Chinese study says

BRUSSELS, May 6 (Reuters) - European Union proposals to tighten cybersecurity by phasing retired instrumentality from Chinese suppliers hazard costing the bloc ‌over $400 cardinal successful the adjacent 5 years, with Germany facing ‌nearly fractional of the burden, China's Chamber of Commerce to the EU (CCCEU) said connected Wednesday.

Under ​new cybersecurity rules, the EU plans to signifier retired components and instrumentality from "high-risk" suppliers successful captious sectors, a determination criticised by China's telecoms elephantine Huawei, which is acceptable to beryllium among the affected companies.

Beijing wants clauses that ‌define "countries posing cybersecurity concerns" ⁠and "high risk" to beryllium dropped from the projected rules and past week threatened countermeasures against the EU if important ⁠changes are not made.

A survey for the CCCEU, carried retired by KPMG, said the forced replacement of Chinese suppliers crossed 18 captious sectors would outgo ​the EU ​367.8 cardinal euros ($432.83 billion) betwixt 2026 ​and 2030. The EU would ‌have to regenerate hardware and constitute down assets and contend with little ratio and delayed digitalisation, the study said.

Two of the heaviest-hit sectors would beryllium vigor and telecoms, pillars of the EU's planned integer and greenish transitions.

Six EU countries would look losses of much than 10 cardinal euros - ‌Germany, France, Italy, Spain, Poland and the ​Netherlands. For Germany, the measure would beryllium ​170.8 cardinal euros.

EU governments ​and the European Parliament are successful the aboriginal stages of ‌the lengthy legislative process required ​for the caller rules ​to go law, a process apt to effect successful amendments.

The European Commission besides recommended connected Monday restricting the usage of EU funds ​for projects involving ‌power inverters from "high-risk suppliers", which it said mightiness pb to a ​remote shutdown of an EU member's energy networks.

($1 = 0.8498 euros)

(Reporting ​by Philip BlenkinsopEditing by Tomasz Janowski)