EU plan to phase out Chinese tech could cost bloc over $400 billion, Chinese study says

EU proposals to phase out equipment from Chinese “high-risk” suppliers could impose heavy costs on European markets, potentially weighing on the Europe 50 index. A KPMG study for China’s Chamber of Commerce to the EU estimates forced replacement of Chinese hardware across 18 critical sectors would cost €367.8 billion ($432.8 billion) from 2026–2030, with Germany bearing about €170.8 billion. Energy and telecoms are identified as the most affected sectors, risking asset write-downs, lower efficiency and delayed digitalisation. The European Commission has also recommended limiting EU funds for projects using power inverters from high-risk suppliers, citing risks of remote shutdowns—an additional operational and regulatory headwind. Brussels’ legislative process could change the rules, but the report and Beijing’s threat of countermeasures add policy risk that is likely to be negative for European equities, especially infrastructure- and telecom-related components of the Europe 50.