Chinese industrial and commercial circles have voiced strong concerns over the EU's proposed Cybersecurity Act (CSA2) and the Industrial Accelerator Act, arguing that the measures go beyond legitimate security needs, introduce discriminatory restrictions on foreign suppliers, and risk undermining WTO rules as well as China-EU economic cooperation, a spokesperson for China's trade promotion agency said on Friday.

Yang Fan, a spokesperson for China Council for the Promotion of International Trade (CCPIT) Photo: CCPIT

The draft revision of the Cybersecurity Act would comprehensively exclude products and services from high-risk suppliers across 18 critical sectors, including information and communications, energy, and transport. Meanwhile, the Industrial Accelerator Act imposes multiple restrictive conditions on foreign companies seeking to invest in Europe or participate in public procurement, Yang Fan, a spokesperson for the China Council for the Promotion of International Trade (CCPIT), said on Friday at a press conference.

Chinese businesses believe these approaches exceed what is necessary to safeguard security and conflict with basic WTO rules, international commitments on trade in services, and investment protection norms, said Yang.

"We call on the European side to fully listen to the views of the global business community in the subsequent legislative process, carefully assess the impact of the relevant bills on China-EU business cooperation, the development of the EU's own industries, and the stability of global supply chains," Yang stated.

CCPIT urged the EU to uphold the principle of technology neutrality, and to delete or substantially amend country-specific and discriminatory provisions in order to effectively protect existing investment and future cooperation.

"Chinese enterprises remain important partners in Europe's digital transformation and industrial upgrading. China's business community is willing to continue strengthening cooperation with the EU side to jointly advance cybersecurity governance and green economic development, maintain an open and non-discriminatory market environment, and safeguard the stability and smooth operation of global industrial and supply chains," Yang noted.

Separately, at the second annual meeting of the WTO Council for Trade in Services held in Geneva in June, China has called on the EU to comply with WTO rules and to delete or substantially amend certain provisions in the draft revision of the Cybersecurity Act, and also urged the EU to revise the proposed Industrial Accelerator Act to eliminate discriminatory measures against specific countries, the Xinhua News Agency reported.

China warned that once implemented, the measures would seriously undermine the authority and effectiveness of the multilateral trading system, and urged the EU to amend and adjust them as soon as possible, according to Xinhua.