The China Chamber of Commerce to the EU, or CCCEU, and the multinational professional services network KPMG issued a joint report on Wednesday that warns the European Union's proposed revision of its Cybersecurity Act could carry a price tag of nearly 368 billion euros ($433 billion), if it calls for the replacement of Chinese suppliers across 18 critical sectors.

The proposed rules, known as CSA2, are expected to introduce supplier restrictions based on country of origin, rather than technical risk assessment.

The report, titled A Huge Cost of 'Guardrails': Security or Blockade?, estimates cumulative economic losses of 367.8 billion euros over five years for EU member states if mandatory replacement is enforced across sectors including energy, telecoms, manufacturing, and financial infrastructure.

Liu Jiandong, chairman of the CCCEU, said the impact could extend far beyond the information and communication technology, or ICT, sector; affecting industries reliant on secure and interoperable digital systems.

"The criteria for identifying so-called 'high-risk suppliers' appear to be politically targeted," Liu said. "This approach politicizes commercial decision-making and runs counter to the EU's principles of equality and non-discrimination."