Brussels’ proposed new Cybersecurity Act would require vast amounts of Chinese equipment to be ripped out and replaced in a slew of industries
The European Union’s push to bar Chinese suppliers from its critical infrastructure under a proposed new Cybersecurity Act would cost the bloc a jaw-dropping €367.8 billion (US$431.4 billion) over the next five years, a new study has warned.
“Given the highly interconnected nature of Europe’s digital value chains … the resulting cost pressures would be borne across the economy, with small and medium-sized enterprises and end users likely to experience higher sensitivity,” said Liu Jiandong, chairman of the CCCEU, in the report released on Wednesday.
Annual losses from the policy are projected to reach €39.1 billion in 2026 and peak at €93 billion in 2028, before plateauing at €91 billion for 2029 and €89.6 billion for 2030, according to the study.
Beyond direct hardware costs, the report predicts €102.1 billion in social losses, with €88.3 billion of that driven by delayed digitalisation and green transition costs. The social losses also include €3.3 billion in unemployment assistance – a figure the report said carried significant policy weight despite its smaller size relative to other categories.
Source: News - South China Morning Post
