歐盟企業(yè)在中國(guó)建議書(shū)（2024-2025）信息與通信技術(shù)工作組（英文）

2024/2025

EuropeanBusinessinChinaPositionPaper歐盟企業(yè)在中國(guó)建議書(shū)

InformationandCommunicationTechnologyWorkingGroup

KeyRecommendations

1.RemoveIndirectBarrierstoEuropeanInformationandCommunication

Technology(ICT)Companies’MarketAccessandtheirAbilitytoFullyContributetoMarketDevelopment

?ImplementmeasurestoimprovemarketaccessforEuropeanICTcompaniestoensurelong-termequaltreatmentintheChinamarket.

-Avoidanoverlyrestrictivedefinitionof‘madeinChina’inthecontextofgovernmentprocurement.

-IdentifyallICTmarketsegmentswheremarketaccessislackingorbiddingrulesareunfairforEuropeanUnion(EU)companies(especiallywithincreasingrequirementsonself-relianceandlocalisation)anddevelopactions—jointlydefinedbyChineseandEuropeanstakeholders—thataddressthekeychallengestodoingbusinessinChina.

-Reviewthestatusofmarketopennessandmarketshareregularly.

?EstablishanopenandeffectivemonitoringandcorrectionsystemforequalICTmarketaccessandbiddingrulesforEuropeanICTcompanies,withbilateralsponsorship,toaddressthecurrent,prominentissues.

2.AvoidBifurcationofSupplyChainsandEcosystemstoSecureForeign

SectionFour:Services

InvestmentandEmbedChinaMoreDeeplyintotheGlobalSystem

?Ensurethatregulatorycontrolsimproveoverallsupplychainresilience,insteadofpursuingself-sufficiencyattheexpenseoflong-terminterdependenciesandcooperationprospects.

?Relyoninternationallyharmonisedstandardstothelargestextentpossible,ratherthanimposingunduerestrictionsonboththeusageofsuchstandards,andthescenariosinwhichtheycanbeused.

?EnsuretechnologyneutralityinICTpolicies,regulationsandstandardstodriveinnovation,competitionandlong-termgrowth.

?Limitregulatorycontrolstowhatisstrictlynecessary,includingbyclearlydelineatingtheboundariesofconceptslike‘nationalsecurity’and‘criticalinformationinfrastructure’.

?Ensurethatcommercialmarketsarefreefromundueregulatorycontrolsandinterventionsbygovernmentauthoritiesandrelatedorganisations.

?Avoidexpandingthescopeofprocurement-relatedlocalisationprogrammestocommercialmarkets.

?Maintainconsistencyinmacro-policyorientation,especiallyregardingpoliciesdevelopedbygovernmentauthoritieswithdifferentsecurityanddevelopmentmandates.

3.DevelopandImplementCommercialCryptographyLaws,Regulations,

StandardsandConformityAssessmentSystemssothatTheyareClear,FairandConducivetoInternationalHarmonisation

?Allowtheadoptionofinternationalstandardsrelatedtocommercialcryptography.

InformationandCommunicationTechnologyWorkingGroup327

Europeanchamber中國(guó)歐盟商會(huì)

?Adopttheprimaryfunctiontestinfurtherrule-makingandintheroll-outofrelevantmechanisms.

?Limitthescopeofcommercialcryptographytesting,certificationandapplicationsecurityassessmenttocriticalinfrastructureinformation(CII),andadoptaholisticapproachinaddressingtheunauthorisedanddiscretionaryexpansionofthescopeofapplicationofsuchprogrammesacrossgeographiesandindustries.

?Clarifytherequirementsrelatingtotheexportcontrolofcommercialcryptography.

?Ensuretechnology-neutralandstreamlinedconformityassessmentprocessesforcommercialcryptography,andtheprotectionofintellectualproperty(IP)andtradesecrets.

?Define‘commercialcryptographyinmassconsumerproducts’as“cryptographyfeaturesincomponentsandproductsopenlyavailabletothepublic,thatcanbeeitherchargedorfree,forpersonalorbusinessuse,andwherethecryptographicfunctionalitycannotbemodifiedbytheenduser”.

?EnsurethatanyimplementingregulationsandstandardsarefullyinlinewiththeCryptographyLaw.

4.OpenupValue-addedTelecomsServices(VATSs)sectorforInternational

Companies

?ReducefurthertheNegativeListandallowincreasedinternationalparticipationintelecoms-andinternet-relatedsectors.

SectionFour:Services

?ContinuetoopenuptheTelecomServicesCatalogueandallowforeign-investedenterprises(FIEs)toobtainVATSlicences,particularlyforinternetresourcecollaboration(IRC),internet-protocolvirtualprivatenetworks(IP-VPNs),internetserviceproviders(ISPs),onlinedataprocessingandtransactionprocessingservices,andinformationservices.

5.CreateaPolicy,RegulatoryandStandardsSystemConducivetothe

SustainableDevelopmentofEmergingandFuture-orientatedIndustries

?Ensurethetimelyavailabilityofthe57–64gigahertz(GHz)bandforunlicenseduse.

?StrengthenEU-Chinaexchangesregardingspectrumregulation,includingbyintegratingspectrumtopicsinrelevantgovernment-to-governmentdialogues.

?Incorporategreendevelopmentmandatesintodevelopmentplansatanearlystageforemergingandfuture-orientatedindustries,andencouragetheadoptionofenergy-efficientandlow-carbontechnologies.

?Strengthenindustryparticipationinexploringthebestdatagovernanceapproachtoimprovetheavailability,qualityandinteroperabilityofdata.

?Increaseinternationalharmonisationofthegovernanceframeworksforemergingandfuture-orientatedindustries,andidentifyEU-Chinasynergiesinkeyfields.

?Adoptarisk-basedapproachtoregulatingrelevantindustries,sothatlow-risktechnologiesandapplicationsarefreefromunduerestrictions,includingmarketentrylimitations.

CybersecuritySub-workingGroup

1.EnsurethatChineseCybersecurityLegislationDoesNotCreate

DiscriminatoryMarketAccessBarriers

?Define‘nationalsecurity’asnarrowlyaspossibleanddifferentiateitfrom‘commercialsecurity’

328InformationandCommunicationTechnologyWorkingGroup

EuropeanBusinessinChinaPositionPaper歐盟企業(yè)在中國(guó)建議書(shū)

2024/2025

inaclearmanner.

?NarrowthescopeofindustriessubjecttoforeigninvestmentsecurityreviewandscenariossubjecttotheCybersecurityReviewMeasures(CSRM).

?RefrainfromimposingunduerestrictionsontheuseofICTproductsandservicesinlevelthreenetworksundertheClassifiedCybersecurityProtectionSystem(CCPS).

?Limittheapplicabilityandinfluenceofnon-bindingcybersecurityregimes,insuchamannerthattheydonotgobeyondbindinglegislation.

?Minimisethescopeofmandataryproductcertificationonlytowhatisabsolutelynecessary,toreducemarketaccessbarriers.

?Promotemutualrecognition,adoptionandrelianceuponapplicableinternationalstandardsandglobalindustrybestpractices.

?Ensurethatmultinationalcorporations’(MNCs’)intellectualpropertyandtradesecretsareprotected.

2.ContinuetoOptimiseChina’sCyberandDataSecurityPoliciestoEnsure

theyFacilitateIndustry,ForeignInvestmentandGlobalExchanges

?Givefurtherguidanceonexemptionsandnecessitydeterminationsandavoidoverlystringentinterpretations.

?Clearlyandnarrowlydefinethescopeofimportantdata,refrainfromclassifyingproductionandR&Ddataatlargeas‘importantdata’,andavoidconflatinglargevolumesofpersonalinformationandsensitivepersonalinformationwithimportantdata,oratleastreviseupthevolumethresholds.

?Provideasufficientgraceperiodbetweenanyfuturereleaseofimportantdataidentificationguidelinesandtheirimplementation.

SectionFour:Services

?StrengthenEuropeanUnion(EU)-Chinadialogueondataandcybersecurity,andidentifyconcreteareasforcooperationwherepossible.

?Avoidmandatingthedisclosureofinformationrelatedtounmitigatedvulnerabilitiestopartiesirrelevanttothecoordinatedvulnerabilitydisclosure(CVD)process.

?Ensureacoordinatedandunifiedapproachforoversightandenforcementamongtheauthoritiesinvolved.

?ClearlydelineatetheboundariesbetweenCriticalInformationInfrastructure(CII)andnon-CII,andavoidinterpretingandapplyingrelevantrequirementsinanexpansivemannertocoverbroadernetworks.

3.EnsureProportionality,IndustryInvolvement,GlobalHarmonisationand

Non-discriminationwhenFuture-proofingSecurityLegislation

?ProvideinatimelymanneranopenandtransparentplatformthatallowsEuropeanbusinessestofullycontributetothedraftingofforward-lookingsecuritylegislation.

?GivemoreconsiderationtothebusinessandoperationalneedsofMNCs.

?Ensuresecurityregulationsareappropriateandcommensuratewiththerisk.

?Increaseinternationalcooperationandcollaborationamonggovernments,regulatorybodies,industryassociationsandcybersecurityexperts.

?Supportglobalcybersecurityinitiativesandframeworkstoprovideguidanceandbestpracticesforbusinesses.

?Ensurethatforward-lookingsecuritylegislationisfreefromunduemarketaccessimpediments.

InformationandCommunicationTechnologyWorkingGroup329

SectionFour:Services

Europeanchamber中國(guó)歐盟商會(huì)

RecentDevelopments

Emergingandfuture-orientatedindustries

The2024GovernmentWorkReportemphasisedthedevelopmentof“newqualityproductiveforces”,aconceptthatenvisagesincreasingoverallproductivitythroughthemodernisationofChina’sindustrialbase,andthepromotionofinnovationinthedigitaleconomyandotherfuture-orientatedindustries.1&2Withtheinformationandcommunicationtechnology(ICT)industryasacornerstoneofthisstrategy,EuropeanICTcompaniesseeampleopportunitiesahead.

Onesuchfuture-orientatedindustryisartificialintelligence(AI).The2024GovernmentWorkReportstatesthatChinawill“stepupresearchanddevelopment(R&D)andapplicationofbigdataandAI[and]launchanAIPlusinitiative”.

TheMinistryofIndustryandInformationTechnology(MIIT)andthreeothergovernmentagencieshavealreadypublishedguidelinesonstandardisingtheAIindustry.Theguidelinesenvisagethat,by2026,morethan50nationalandindustryAIstandardswillhavebeendeveloped,andthatChinawillhaveparticipatedinthedraftingofover20internationalstandards.3TheMIITalsoplanstoestablishanewAIstandardisationtechnicalcommittee.4

On9thMay2024,theStateCouncilissuedits2024LegislativeWorkPlan,citingthedraftArtificialIntelligenceLawasalegislativeprojectinprogress.5

Spectrum

On4thJune2023,theMIITannouncedthatChinawouldcontinuetoenhancethewholeindustrychains

1FullText:ReportontheWorkoftheGovernment,Xinhua,StateCouncil,updated13thMarch2024,viewed22ndMay2024,<

/

news/202403/13/content_WS65f0dfccc6d0868f4e8e5079.html

>

2Theconceptof'newqualityproductiveforces'wasfirstputforwardbyPresidentXiJinpinginSeptember2023,beforebeingmentionedagainduringtheDecember2023CentralEconomicWorkConference,andthenfurtherpromotedinthe2024GovernmentWorkReport:Xictionary:Newqualityproductiveforces,Xinhua,6thMarch2024,viewed22ndMay2024,<

https://

/20240306/a2905236963f4b00adae5e8b1b6c2c2f/c.html

>

3PubliclySolicitingOpinionsontheGuidelinesfortheConstructionofaComprehensiveStandardisationSystemfortheNationalArtificialIntelligenceIndustry(DraftforOpinion),MIIT,17thJanuary2024,viewed15thMay2024,<

/jgsj/kjs/gzdt/art/2024/art_956f95c93db8432e824b5e68

dcc7d2fc.html

>

4AnnouncementonPlanofEstablishinganAIStandardizationTechnicalCommittee,MIIT,1stJuly2024,viewed17thJuly2024,<

/

zwgk/wjgs/art/2024/art_f9fabce91533494aadb17796a09def14.html

>

5CircularoftheGeneralOfficeoftheStateCouncilontheIssuanceoftheLegislativeWorkPlanoftheStateCouncilfortheYear2024,StateCouncil,9thMay2024,viewed15thMay2024,<

/zhengce/

zhengceku/202405/content_6950094.htm

>

330InformationandCommunicationTechnologyWorkingGroup

forbothmobileandopticalcommunication,planfornext-generationinternetandotherfrontierareas,andpromotesixth-generation(6G)technologyR&D.6On27thJune2023,theMIITupdateditsRadioFrequencyAllocationProvisions,effectiveasof1stJuly2023.7Itcontainsseveralnotablerevisions,includingtheallocationofthe6425–7125-megahertz(MHz)frequencybandforinternationalmobiletelecommunications(IMT),includingfifth-generationmobiletechnology(5G)and6G,makingChinathefirstcountrytodoso.Italsomadeclearthatthe79–81gigahertz(GHz)frequencybandwillbereservedforapplicationslikeautomotiveradaronaprioritybasis.WithChinanowatacriticalstageinthelarge-scaledevelopmentof5Gapplications,priorityisnowbeinggiventotheevolutionof5G,supporting5G-A8developmentandincreasing6GtechnologyR&D.9

Overthepastyear,theMIITalsopublishedspectrumregulationsrelatingtoultra-widebandradioequipment,civiliandronesandradiofrequencyidentification.

TheICTindustryisnowawaitingtheidentificationofadditional,large,andcontiguousmillimetrewavefrequencyrangesforunlicenseduse.Formoreinformation,pleaserefertokeyrecommendation(KR)5.

Datasystemsandinfrastructure

On25thOctober2023,ChinainauguratedaNationalDataBureau(NDB),administeredbytheNationalDevelopmentandReformCommission.TheNDBisresponsiblefor:advancingthedevelopmentofdata-relatedinstitutions;coordinatingtheintegration,sharing,developmentandapplicationofdataresources;andadvancingthedevelopmentoftheDigitalChinaInitiative,thedigitaleconomyandadigitalsociety.10Anumberofpolicieshavealreadybeenpublishedinthisregard,suchas:

6Graph:TheMIITwillcomprehensivelypromotetheresearchanddevelopmentof6Gtechnology,Xinhua,5thJune2023,viewed9thMay2024,<

https://www.

/zhengce/jiedu/tujie/202306/content_6884571.htm

>

7RadioFrequencyAllocationProvisions,MIIT,27thJune2023,viewed10thMay2024,<

/gyhxxhb/jgsj/cyzcyfgs/bmgz/wxdl/art/2023/art_1e

98823e689f42ca9ed14dcb6feec07a.html

>

85G-A(5G-Advanced),whichisbasedontheevolutionandenhancementof5Gnetworkinfunctionandcoverage,isakeyinformationtechnologytosupportthedigitalupgradingofindustriessuchas3Dinternet.

9HowtoviewthesituationofChina'sindustrialdevelopment?Howtopromotethedevelopmentofsmallandmedium-sizedenterprises?JinZhuanglong,MinisterofIndustryandInformationTechnology,talkedaboutpromotingnewindustrialisationonthe"Minister'sCorridor",MIIT,9thMarch2024,viewed20thMay2024,<

/jgsj/bgt/xwxc/art/2024/art_272488abf1e045

4e8925f49606ddb9f2.html

>

10SpotlightontheofficialinaugurationoftheNationalDataBureau,ChinaNewsAgency,25thOctober2023,viewed17thMay2024,<

/

s?id=1780735076224705803&wfr=spider&for=pc

>

On31stDecember2023,theNDBand17otherdepartmentsjointlyissuedtheThree-YearActionPlanforDataElements(2024–2026),whichaimstopromotetheintegrationofdatain12keyareas,suchassmart

manufacturing,smartagricultureandtechnologicalinnovation,acceleratetheapplicationofdigitaltechnologiesandpromotethedigitaltransformationofindustries.11TheNDBalsomaderepeatedhigh-levelpledgestooptimiseChina’sdata-relatedregulations.

On8thOctober2023,sixdepartments,includingtheMIITandtheOfficeoftheCentralCyberspaceAffairsCommission,jointlyunveiledanactionplanforthehigh-qualitydevelopmentofcomputingpowerinfrastructure.12TheplanforeseesthatChina’stotalcomputingpowerwillhavereachedover300exaflopsby2025,andcallsforthedevelopmentofefficient,smart,greenandlow-carboncomputingpower.

Telecommunications

InApril2024,theMIITissuedtheCircularonthePilotSchemefortheFurtherOpeningofValue-addedTelecomServicestoForeignInvestment,aimingtoeliminate,undercertainconditions,foreignownershiprestrictionsinsixdomesticvalue-addedtelecomservices(VATSs)acrossfourkeypilotregions—Beijing,Shanghai,HainanandShenzhen.13ThesixVATSsare:1)internetdatacentres(includingsub-serviceinternetresourcescollaborationservices);142)contentdeliverynetworks;3)internetserviceproviders;4)onlinedataprocessingandtransactionprocessing;5)informationpublishingplatformsandinformationdeliveryservices(excludingservicesrelatingtointernetpublishing,internetradioandtelevision,andinternet

11CircularoftheseventeendepartmentsontheissuanceoftheThree-YearActionPlanforDataElements(2024–2026),CyberspaceAdministrationofChina,5thJanuary2024,viewed8thMay2024,<

/2024-01/05/

c_1706119078060945.htm

>

12CircularoftheMinistryofIndustryandInformationTechnologyandsixotherdepartmentsontheissuanceoftheActionPlanforHigh-qualityDevelopmentofComputingPowerInfrastructure,MIIT,8thOctober2023,viewed20thMay2024,<

/zwgk/zcwj/wjfb/tz/art/2023/art_fcb3aa793e674960b1c0

0d7e3b6ad448.html

>

13CircularonthePilotSchemefortheFurtherOpeningofValue-addedTelecomServicestoForeignInvestment,MIIT,10thApril2024,viewed10thMay2024,<

/zwgk/zcwj/wjfb/tg/art/2024/art_2326271e1b424e09b6e

5924ad2948863.html

>

14InternetResourceCollaborationService(IRCS)referstothedatastorage,internetapplicationdevelopmentenvironment,internetapplicationdeploymentandoperationmanagementservicesprovidedtousersthroughtheinternetorothernetworksintheformofreadyaccess,on-demanduse,readytoexpand,collaborativesharing,etc.TheIRCSlicenceisparticularlyimportantforenterprisesengagedincloudcomputing,cloudhosting,webhosting,serverleasingandotherbusinesses.

2024/2025

EuropeanBusinessinChinaPositionPaper歐盟企業(yè)在中國(guó)建議書(shū)

culturemanagement);15and6)informationprotectionandprocessingservices.

CommercialCryptography

On7thOctober2023,theStateCryptographyAdministration(SCA)releasedtwoadministrativemeasures,onebeingtheAdministrativeMeasuresontheSecurityAssessmentofCommercialCryptographyApplications(Measures).16Thesemeasuresweredesignedtosupporttheroll-outoftherevisedCommercialCryptographyRegulationsreleasedon1stJuly2023.17AccordingtotheMeasures,operatorsofnetworksandinformationsystemsthatare“requiredbylaws,administrativeregulationsandotherrelevantprovisionsofthestate”tobeprotectedbycommercialcryptography,alsoreferredtoas“importantnetworksandinformationsystems”,shallcarryoutregularsecurityassessmentofcommercialcryptographyapplications.Thisisahighlycontroversialrequirementthatcouldpotentiallyleadtofurthermarketaccessbarriers,asdiscussedinKR3ofthispaper.

KeyRecommendations

1.RemoveIndirectBarrierstoEuropean

ICTCompanies’MarketAccessandtheirAbilitytoFullyContributetoMarketDevelopment

Concern

Thelackofreciprocalmarketaccess,coupledwithincreasedlocalisationrequirementsinkeyICTmarketsegments,hasstartedtoresultinsomeEuropeancompaniesde-prioritisingtheChinamarketandjeopardisesthefutureofEuropeanUnion(EU)-ChinaICTindustrycollaboration.

Assessment

DuetotheirmanyyearsofoperatinginChina,EuropeanICTcompaniesaredeeplyawareoftheimportanceofsustainablemarketaccessforplayersacrossindustrysegmentsandalongthevaluechainto

15Internetculturemanagementreferstoactivitiesthatprovideinternetculturalproductsandtheirservicestomakeprofit,bycharginginternetusersorobtainingbenefitsbymeansofe-commerce,advertisementorsponsorship.Theymainlyinclude:1.musicandentertainmentproducts;2.gameproducts;

3.worksofart;4.performances;5.animationandfilmproducts;6.operationofinternetculturalproductsincybercafés;and7.exhibitionsandcompetitions.

16AdministrativeMeasuresontheSecurityAssessmentofCommercialCryptographyApplications,SCA,7thOctober2023,viewed17thMay2024,<

/sca/xxgk/2023-10/07/content_1061109.shtml

>

17CommercialCryptographyRegulations,StateCouncil,24thMay2023,viewed7thMay2024,<

/zhengce/zhengceku/202305/content_6875928.

htm

>

InformationandCommunicationTechnologyWorkingGroup331

SectionFour:Services

SectionFour:Services

Europeanchamber中國(guó)歐盟商會(huì)

developandthrive.Inthisregard,thecurrentdynamicofthemobilemarketlandscapeisemblematicof

theunfortunateimpactofindirectbarriersonmarketaccess.

Theglobalsuccessofthemobileindustryreliesonharmonisedstandards.Inthisfield,ChinaandtheEUhavemadethemostcontributionsandhavecooperatedonbothfourth-generation(4G)andnow5Gstandards,tomutualbenefit.However,asChina’scommercialdevelopmentof5Gexploded,18Europeanfirms'marketsharedroppedfromaround30percentin4Gtolowsingledigitsin5G—adropsosharpitcannotbeexplainedbycommercialreasonsalone.Accordingtothelatestdatapublishedin2024,19Europeanindustry’saccumulated5GmarketshareinChinawasjusteightpercentin2023,comparedto92percentfordomesticvendors.Meanwhile,Chinesevendorshadwonmorethan30percentoftheEuropean5Gmarketbytheendof2022,representingafour-foldimbalance.20

ThisincreasingimbalanceisasignificantconcernandhasseriouslyweakenedtheimportanceoftheChinamarkettoEuropeaninvestorsinkeyICTmarketsegments,ledtoade-prioritisationofChinainglobalinvestmentplanning,andjeopardisedtheoutlookforEU-ChinaglobalcollaborationinthebroaderICTindustry.

Lookingbeyondthemobileindustry,localisation(ordomesticsubstitution)requirementshavebecomeaseriousfaircompetitionchallengeandincreasinglyade-factomarketaccessbarrierforEuropeancompaniesdoingbusinessinChina.Inmanyindustrysectors,companiesarefacinggrowinglocalisationrequirements,whicheithermandatedomesticsupplychainsupportbygivingitsignificantweightinginthetenderscoringsystemor,moreseverely,byspecifyingarequiredlocalisationpercentageinthequalification

18In2019,Chinabeganamassivedeploymentof5Gtechnology,andnowhastheworld’slargestandmostadvanced5Gnetwork.AccordingtoMIITstatistics,bytheendof2023,Chinahaddeployed3.34million5Gbasestations,ayear-on-yearincreaseof46percent,andhad805million5Gsubscribers.China’stotal5Ginvestmentin2023amountedtoChineseyuan(CNY)190.5billion:InterpretationoftheICTIndustryStatistics2023,MIIT,24thJanuary2024,viewed7thMay2024,<

/gxsj/tjfx/txy/art/2024/art_c3f0194

a3a8141488885fc26ca5c98fd.html

>

19Marketshareof5GbasestationmanufacturersinChinain2023,Statista,June2023,viewed24thJune2024,<

/statistics/1194757/

china-market-share-of-5g-base-stations-by-manufacturer/

>

20Rühlig,T,andTurcsányi,R,EvaluatingPublicSupportforChineseVendorsinEurope’s5GInfrastructure,GermanCouncilonForeignRelations,August2023,viewed10thMay2024,<

/en/research/publications/

evaluating-public-support-chinese-vendors-europes-5g-infrastructure#

>

332InformationandCommunicationTechnologyWorkingGroup

criteria.Althoughlocalisationrequirementsvaryamongdifferentindustries,thecommonlyobservedtrendisforincreasedlocalisationrequirements,whichmaybecomeanexistentialthreattosegmentsoftheEuropeanICTindustryinthefuture.

Addedtotheseexistingconcernsisthependingdefinitionof‘madeinChina’ingovernmentprocurement,astherearefearsthatitmaybedefinedinanoverlyrestrictivemanner.

TheICTWorkingGroupbelievesthatwhileindustrialpolicysupportforindigenousindustriesisunderstandablewithinreasonableandproportionatelimits,commercialmarketsmustbefreefromunduelocalisationmandates.Ensuringmarketaccessbygivingallcompaniesfairandequalopportunitiestocontributetomarketdevelopmentfullyiscrucialtomaintainingandfurtherpromotingvitalinterdependencies.

Recommendations

?ImplementmeasurestoimprovemarketaccessforEuropeanICTcompaniestoensurelong-termequaltreatmentintheChinamarket.

-Avoidanoverlyrestrictivedefinitionof‘madeinChina’inthecontextofgovernmentprocurement.

-IdentifyallICTmarketsegmentswheremarketaccessislackingorbiddingrulesareunfairforEUcompanies(especiallywithincreasingrequirementsonself-relianceandlocalisation)anddevelopactions—jointlydefinedbyChinese

andEuropeanstakeholders—thataddressthekeychallengestodoingbusinessinChina.

-Reviewthestatusofmarketopennessandmarketshareregularly.

?EstablishanopenandeffectivemonitoringandcorrectionsystemforequalICTmarketaccessandbiddingrulesforEuropeanICTcompanies,withbilateralsponsorship,toaddressthecurrent,prominentissues.

2.AvoidBifurcationofSupplyChainsand

EcosystemstoSecureForeignInvestmentandEmbedChinaMoreDeeplyintotheGlobalSystem

Concern

Bifurcationofsupplychainsandecosystemsrisksleadingtoadismantlingoftheglobalisedsystem,

resultinginfragmentedmarkets,reducedefficiencyandhighercosts.

Assessment

Overthepasttwoyears,China’stopleadershiphasgivenseveralpositivesignalsincludingsuccessivehigh-levelguidelinestoattractforeigninvestmentandcreatealevelplayingfield.21ThesesignalsprovidetheidealcontextfortheEUandChinatojointlyfacilitategrowthandsustainablemarketaccess,asadvocatedinKR1.

Inthisrespect,theICTWorkingGroupwouldliketohighlightthattreatingself-relianceastheoverridingandabsolutepriority,ratherthanoneofmanymeanstoachievesupplychainresilience,risksfurtherdismantlingtheglobalisedsystem.InadditiontothelocalisationmandatesmentionedinKR1,anumberofotherchallengesexistinmoretechnicalformsandcouldfurtherbifurcateICTsupplychainsandecosystems:

?SomeICTstandardsdifferfrominternationallyharmonisedones.Restrictionsmaybeimposedeitherontheusageofinternationalstandards,oronthescenariosinwhichtheycanbeused.

?Certainpolicies,regulationsandstandardscontainspecifictechnologymandates.Thelackoftechnologicalneutralityhindersinterconnectivity,technologicalinnovation,competitionandlong-termgrowth.

?Astheboundariesofconceptssuchas‘nationalsecurity’and‘criticalinformationinfrastructure’,aswellasbetweentheconceptsof‘criticali