Cui noted that the CSA2"s mandatory replacement provisions would lead to high equipment replacement costs. Moreover, new suppliers may charge higher prices while offering relatively lower quality or performance. Overall, this is not cost-effective from either an economic or technological perspective.

　　Previously, China"s Ministry of Commerce (MOFCOM) responded that the proposed revision would cause substantial harm to China-EU economic and trade relations, deliver a severe shock to global production and supply chains, and inevitably hinder the EU"s own digital and green transformation processes.

　　In addition to the proposed revision of the CSA2, the MOFCOM on April 27 expressed China"s position and serious concerns over the EU"s Industrial Acceleration Act (IAA), which imposes restrictive requirements on foreign investment in four key strategic sectors - batteries, electric vehicles, photovoltaics and critical raw materials - and introduces "EU-origin" clauses in public procurement and support policies, constituting significant investment barriers and institutional discrimination, said the MOFCOM.

　　An insider told the Global Times recently that if the EU continues to escalate protectionist measures, China has a broad policy toolkit. "China is neither unfamiliar with nor afraid of trade frictions," the insider said, adding that any escalation would harm both sides, disrupt global industrial and supply chains, and weigh on global growth," the insider said.

　　"EU"s recent actions represent a continuation of its institutions" established policy direction. However, some European countries are beginning to return to a more rational approach at the bilateral level, placing greater emphasis on market principles and real economic interests, and expressing a willingness to maintain cooperation with China," Cui said.