EU cyber plan to remove Chinese hardware could cost $431.4 billion
Updated
Updated · South China Morning Post · May 6
EU cyber plan to remove Chinese hardware could cost $431.4 billion
9 articles · Updated · South China Morning Post · May 6
A study released on Wednesday put the five-year cost at €367.8 billion, with annual losses of €39.1 billion in 2026 rising to €93 billion in 2028.
It said the proposed Cybersecurity Act would force replacement of Chinese equipment across critical infrastructure, while small businesses and end users would face higher costs across Europe’s digital value chains.
The report estimated €102.1 billion in social losses, including €88.3 billion from delayed digitalisation and green transition and €3.3 billion in unemployment assistance, amid EU moves to curb high-risk Chinese suppliers.
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The EU's 36-Month Countdown: Multibillion-Euro Rip-and-Replace of Chinese Vendors in 18 Critical Sectors
Overview
In early 2026, the EU proposed a major revision to its Cybersecurity Act, requiring the removal of high-risk vendors, mainly Chinese firms, from 18 critical sectors. This mandates costly equipment replacements for network operators, especially telecoms, within 36 months, without EU financial aid. The move is driven by fears of remote sabotage and supply chain risks, influenced by U.S. policies on technological decoupling. China strongly opposes the plan, labeling it protectionist and threatening retaliation, including export controls on critical raw materials that could disrupt European industries. Meanwhile, EU political fragmentation creates uncertainty, with operators lobbying for extended deadlines and support. The policy risks fracturing global tech standards and challenges the EU's strategic autonomy amid geopolitical tensions.