Cybersecurity tensions
Adding to the trade tensions is the EU’s draft Cybersecurity Act, which is intended to strengthen the security of tech supply chains.
The EU is preparing tougher, binding measures for telecoms operators to reduce their use of Chinese tech champion Huawei, and plans similar interventions in areas including energy systems, security equipment, medical devices and more.
Brussels is targeting “high-risk” vendors — commonly understood to be Chinese suppliers in critical sectors. The proposed rules set new criteria for European governments when deciding to ban vendors from their networks, including assessing “non-technical risks” like whether companies are subject to political pressure.
China’s Commerce Ministry said this month that “the proposal is a typical unilateral and protectionist measure,” adding in published comments that “If the EU clings to the wrong path, China will act decisively and take all necessary measures to defend China’s legitimate rights and interests.”
Brussels has previously tried to wean telecoms operators off Chinese vendors like Huawei and ZTE, but national governments dragged their feet, fearing retaliation from Beijing.
The diplomatic temperature between Brussels and Beijing remains icy for now, but senior EU officials show little inclination to escalate. Industry Commissioner Stéphane Séjourné, who is overseeing the industry act, recently said the EU wasn’t following Washington’s hard line on China, and maintained the bloc was open to Chinese investment.
China’s Commerce Minister Wang Wentao has meanwhile been invited to Brussels by EU trade boss Maroš Šefčovič. One person familiar with the matter said Wang could visit in late June or early July.
Commission President Ursula von der Leyen has called for a strategy debate on China with her fellow commissioners on May 29. Policymakers are expected to discuss whether the bloc needs new trade defense instruments to protect itself against Chinese commercial encroachment, as well as ways to keep communication open with Beijing.