China warned the EU its draft cybersecurity law could harm trade and trigger retaliation.
China has voiced strong opposition to the European Union's proposed revision of its Cybersecurity Act, warning that the draft could politicize trade, disrupt global supply chains and undermine bilateral economic ties, the Ministry of Commerce said on Monday.
A ministry spokesperson said China remains open to dialogue but will take necessary countermeasures if Chinese companies face discriminatory treatment.
In a 30-page document submitted to the European Commission on Friday, China’s Ministry of Commerce explicitly warned that broad retaliation was on the table if firms such as Huawei and ZTE were penalised by the law, which was announced in January but is still in draft form.
The Ministry expressed serious concerns over provisions that introduce so-called non-technical risks and designate "high-risk suppliers", which could exclude certain countries and companies from key sectors such as energy, transport, information and communication technology, according to an online statement.
The spokesperson pointed out that the draft may violate core rules of the World Trade Organization, including principles of most-favored-nation treatment and national treatment, and could conflict with agreements such as the General Agreement on Tariffs and Trade 1994 and the General Agreement on Trade in Services.
The ministry urged the EU to remove or amend the relevant provisions, warning that such measures could harm China-EU economic ties, disrupt global supply chains and slow the bloc's digital and green transitions.
Source: China Daily, SCMP
