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EU's 'high-risk' label for China sparks trade and cybersecurity backlash from Beijing

China fires back after the EU brands it a 'high-risk' supplier, calling the move politically driven. Will this escalate into a full-blown trade war?

The image shows a graph on a white background with text that reads "eu imports and non-eu trade"....
The image shows a graph on a white background with text that reads "eu imports and non-eu trade". The graph is composed of two lines, one in blue and one in red, that represent the number of imports and exports from different countries. The blue line is steadily increasing, indicating a steady increase in imports over time. The red line is slightly lower than the blue line, indicating an increase in exports. The graph also includes a legend that explains the meaning of the colors used in the graph.

EU's 'high-risk' label for China sparks trade and cybersecurity backlash from Beijing

The European Union’s decision to label China as a 'high-risk country' has sparked strong opposition from Beijing. Chinese officials warn that the move could damage trust and disrupt supply chains between the two trading partners. The EU’s new cybersecurity rules, seen as targeting Chinese firms, have further strained relations. The EU’s latest cybersecurity package aims to remove components from 'high-risk suppliers' in critical infrastructure. This policy, widely interpreted as targeting Chinese manufacturers, also blocks funding for projects using inverters from China and other designated countries. Beijing has condemned the restrictions as politically motivated rather than based on technical assessments.

Hu Qimu, a professor at the Maritime Silk Road Institute of Huaqiao University, argued that China has long provided Europe with market stability, technological collaboration, and energy security. He described the EU’s actions as unfair and driven by political motives rather than genuine concerns. China’s Ministry of Commerce (MOFCOM) has called on the EU to reverse its decision, labelling it as stigmatisation and discriminatory treatment. Despite tensions, recent visits by European leaders to China suggest expectations for deeper cooperation. However, Beijing has warned it will take steps to protect Chinese businesses if the EU continues its protectionist policies.

The dispute highlights growing tensions between China and the EU over trade and technology. Beijing insists the restrictions lack justification and threaten economic ties. If the EU maintains its stance, further measures from China could follow to defend its industries.

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