The European Union flags in front of EU headquarters in Brussels, Belgium. Photo: VCG

China's business chamber in the EU issued fresh warnings over the bloc's proposed revision of the Cybersecurity Act (CSA2), stating the proposed new rules could introduce overly broad restrictive measures that are not based on a transparent, evidence‑based risk assessment methodology, according to a post published Wednesday on the official WeChat account of the China Chamber of Commerce to the EU (CCCEU).

On Tuesday, the CCCEU submitted its feedback on the EU plan, stating that strengthening cybersecurity and protecting critical infrastructure should adopt a proportionate, risk‑based, evidence‑based, and technology‑neutral regulatory approach, while safeguarding the openness and competitiveness of the EU single market. 

The Chinese chamber noted that certain elements of the current CSA2 proposal could introduce overly broad restrictive measures that are not based on a transparent, evidence‑based risk assessment methodology. In particular, the proposed mandatory, comprehensive, and time‑limited exclusion policies across several critical sectors raise serious concerns. 

These measures could disrupt normal market operations, increase compliance costs for businesses, and have broader adverse effects on Europe's green and digital transitions, industrial competitiveness, and economic relations with key trading partners, according to the post.

The EU's proposed revision of the CSA2 could carry a price tag of nearly 367.8 billion euros ($431.5 billion) if it forces the replacement of Chinese suppliers across 18 critical sectors, a report that the chamber sent to the Global Times on May 6 showed.

In January, the European Commission (EC) proposed a new cybersecurity package, including a "Proposal for a Regulation on the EU Cybersecurity Act", which aims to gradually phase out components and equipment from "high-risk suppliers" in critical infrastructure. This move is widely seen as targeting Chinese companies and forms part of a broader set of EU protectionist tools targeting China. 

In addition to the CCCEU, a number of Chinese business chambers based in European countries, including those in Poland, Spain and Italy, have also voiced their concerns in recent days.

On Monday, the Chinese business chamber in Spain, the CCINCE, issued a statement, stating that an open, fair and fully competitive market is the foundation for Europe's long-term industrial competitiveness, and that "excluding specific suppliers in the name of security essentially sacrifices market efficiency and technological diversity for so-called security." This not only fails to create a sustainable risk governance mechanism, but may also introduce new vulnerabilities, according to the CCINCE statement.

Michele Geraci, former Italian undersecretary of state and NYU Shanghai adjunct professor, told the Global Times in an exclusive interview that the fact that European leaders have been frequently visiting China recently while the EU has been introducing laws such as the proposed revision of the CSA2 is "highly contradictory."

"Instead of seeking cooperation, the EU keeps creating barriers. While China continues to open up, Europe is becoming more closed. It's a very ironic reversal of expectations," Geraci said.

China urged the EU to take a comprehensive, objective and positive view of China-EU economic and trade relations, abide by World Trade Organization rules and market principles, and cease its detrimental actions. If the EU insists on turning the proposal into law and discriminates against Chinese companies, China will take measures to safeguard the legitimate rights and interests of Chinese enterprises, Foreign Ministry spokesperson Lin Jian said on May 8.

"China is closely following the EU's legislative developments and is willing to engage in dialogue and communication with the EU on this issue," Lin said.

Previously, China's Ministry of Commerce (MOFCOM) responded that the proposed revision would cause substantive harm to China-EU economic and trade relations, severely disrupt global industrial and supply chains, and undermine the EU's own digital and green transitions.

China will closely follow the progress of the draft revision and stands ready to engage in dialogue with the EU on the matter, the MOFCOM spokesperson said, warning that should the EU insist on turning the draft proposal into law and discriminating against Chinese companies, China would have to take corresponding countermeasures.