Q: We noted that MOFCOM recently submitted comments to the European Commission regarding the proposal for revision of the EU Cybersecurity Act. Could you share more details?

A: On April 17, MOFCOM officially submitted comments to the European Commission regarding the proposal for revision of the EU Cybersecurity Act, outlining its grave concerns and official position.

China believes that the proposal introduces highly subjective and arbitrary “non-technical risk” in the name of cybersecurity and supply chain security. In particular, the proposal identifies “third countries posing cybersecurity concerns” and “high-risk suppliers,” and excludes the listed countries and suppliers from relevant EU supply chains across 18 sectors, including energy, transport, and ICT. This is a typical practice of politicizing trade issues and overstretching the concept of security.

In the comments submitted to the European Commission, China pointed out multiple problems with the proposal. First, the proposal could violate basic WTO principles, including most-favored-nation treatment and national treatment. It could violate the rules of multiple agreements, including the GATT 1994, the General Agreement on Trade in Services, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Technical Barriers to Trade, as well as the EU’s specific commitments on trade in services. Second, it could exceed the EU’s legal mandate by eroding member states’ exclusive competence in managing national security affairs. Third, if adopted, it would cause substantive harm to China-EU economic and trade relations, severely disrupt global industrial and supply chains, and weigh on the EU’s own digital and green transition.

In the comments, China advised the EU side to remove provisions related to “third countries posing cybersecurity concerns” and “non-technical risks”, and delete or substantially revise the criteria for identifying “high-risk suppliers” and related restrictive measures. China hopes the EU side will take China’s comments and revision suggestions seriously and give them careful consideration, strictly abide by WTO rules, refrain from taking discriminatory restrictive measures, and safeguard the stable and unimpeded operation of China-EU and global industrial and supply chains.

China will closely follow the progress of the Cybersecurity Act revision and stands ready to engage in dialogue with the EU side on the matter. If the EU side insists on adopting this proposal and discriminates against Chinese companies, China would have to take corresponding countermeasures. We hope the EU side will not underestimate China’s firm resolve to safeguard national interests and the legitimate rights and interests of its companies, and to prevent China-EU economic and trade ties from moving backwards. (Released on April 20)