Nation voices concerns over EU's discriminatory label on Chinese firms

China voiced "grave concerns" and "firm opposition" to the European Union's move to label certain Chinese tech firms as "high-risk suppliers" on Thursday, following Brussels mandates to restrict such suppliers from critical sectors like 5G.

"We firmly oppose the EU's discriminatory practices against Chinese enterprises and its misguided approach of politicizing and over-securitizing economic and trade issues," said He Yongqian, spokeswoman for the Ministry of Commerce, at a news conference.

The bloc is set to unveil a new Cybersecurity Act proposal this week, aiming to mandate phasing out so-called "high-risk" Chinese suppliers like Huawei and ZTE from critical infrastructure, extending beyond voluntary measures and impacting 5G, energy and transport.

He noted that Chinese companies have long operated in Europe in full compliance with laws and regulations, providing high-quality products and services to European citizens and making significant contributions to the development of Europe's telecommunications and digital industries.

The EU's use of non-technical criteria to forcibly restrict or even prohibit market access not only severely undermines fair competition and distorts the market, but also harms others without benefiting itself — creating unnecessary risks and jeopardizing the security of supply chains in the digital industry, she said.

"We urge the EU to adhere to the principle of technological neutrality in matters of cybersecurity, refrain from broadening the definition of security, and avoid going further down the path of protectionism or hindering normal economic and trade cooperation between China and Europe," she said.

China will closely monitor relevant actions by the EU. Should the EU adopt any discriminatory measures against Chinese enterprises, China will take resolute steps to firmly safeguard the legitimate rights and interests of Chinese companies, she added.

Chinese tech company Huawei said in an announcement earlier this week that the EU's new act restricts or excludes suppliers based on their nationality or origin rather than transparent technical standards, objective equipment testing results and factual evidence.

Such an approach not only blatantly contradicts the fundamental legal principles including fairness, non-discrimination and proportionality that the EU itself has long championed, but also constitutes a flagrant violation of WTO rules as noted in the announcement.

Such an approach does little to enhance cybersecurity but instead undermines the fairness of global technological competition. Huawei firmly opposes this practice and reserves the right to take further legal action to protect its legitimate rights and interests, the company said.