Welcome to the 70th issue of the CEEasia Briefing.
In this issue, we dissect the following topics:
- Poland adopts a new cyber bill, seemingly targeting China
- EU counters Chinese steel
- Slovakia pushes for closer ties with China
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1. Poland adopts a new cyber bill, seemingly targeting Chinese providers
What’s going on? On 21 October, Poland’s Council of Ministers adopted a draft National Cybersecurity System Act (KSC) to implement the EU’s NIS2 Directive. The bill would allow authorities to exclude suppliers deemed to be national-security risks from critical infrastructure sectors, such as energy, healthcare, water, and banking. It would also require “key” and “important” entities to phase out products or software from any company designated a “high-risk supplier.” Though country-agnostic on its face, the draft law is widely seen as targeting Huawei and other Chinese providers.
Going deeper… The proposed law would align Poland’s cybersecurity framework with broader EU and NATO efforts to safeguard critical infrastructure from potential threats linked to non-EU suppliers, particularly Chinese firms. Huawei, already facing similar restrictions elsewhere in Europe, has strongly objected, arguing the draft is discriminatory and lacks clear criteria. The company claims the rules could violate investment protections under the China-Poland Bilateral Investment Treaty and the Energy Charter Treaty (ECT), warning that potential damages could reach billions of Polish zlotys.
This means… Huawei has signaled it may pursue international arbitration under the ECT if Poland moves ahead, an approach it previously used in Sweden after being barred from 5G tenders. Warsaw’s push mirrors a broader European trend of tightening controls on high-risk suppliers in sensitive sectors. Across the continent, Huawei’s role in critical infrastructure is under mounting scrutiny as national-security concerns increasingly shape ICT policymaking.
2. Countering the Chinese steel: UK joins European momentum
What’s going on? On 7 October, the European Commission unveiled a proposal to protect the EU steel sector from the “unfair impact of global overcapacity.” While it doesn’t name China, the move comes amid a broader set of measures to screen and counter China-related economic risks in Europe. In its wake, British officials have floated a “steel alliance” with the US and the EU to counter growing Chinese overcapacity in the sector.
Going deeper… The European Commission proposal would replace existing steel safeguards set to expire in June 2026 and introduce three key measures. This will reduce current tariff-free import quotas by approximately 47%, double the duty on out-of-quota imports to 50% (up from 25%), and enhance traceability across steel markets. The move aligns with other EU actions over the past year, reflecting a more protectionist stance toward European industries facing heavily subsidised Chinese imports. In late October, Reuters reported that Brussels had already identified “potentially harmful” increases in imports from China across various categories, including textiles, metals, and transport equipment, and cited business groups in Germany and Italy calling for tougher curbs.
In addition… Heightened protectionism in response to Chinese exports is becoming a global concern. Over the past year, countries such as Thailand and Malaysia have imposed restrictions to limit Chinese imports. Most recently, the UK appears to be using steel to push for a more coordinated response to Chinese overcapacity in the sector. In late October, just weeks after the EU proposal, the UK trade minister told the Financial Times that the US, EU, and UK have been discussing a “steel alliance.” The concept isn’t new, but renewed momentum could support more concrete action than in the past.
3. Slovakia pushes for closer ties with China
What’s going on? Chinese Vice Premier He Lifeng met Slovak Deputy Prime Minister Denisa Saková in Beijing on 14 October, where both sides expressed willingness to deepen cooperation in trade, investment, and technology. Slovakia has recently sought to strengthen its economic ties with China, as underscored by the announcement of a €1.2 billion Chinese investment in an electric-vehicle battery plant in Slovakia.
Going deeper… The He–Saková meeting comes amid deepening economic engagement between China and Slovakia. Last month, Slovakia’s prime minister called for closer ties and more investment from Chinese firms, an approach that contrasts with the EU’s more cautious stance on screening Chinese investments. On 28 October, China’s Gotion High-Tech officially inaugurated its €1.2 billion electric-car battery plant project in Šurany, slated to begin production in 2027. It is one of the largest foreign direct investments in Slovakia’s history and the country’s first EV battery plant, underscoring the automotive sector’s importance to the economy (around 10% of GDP).
This means… Recent developments underscore Slovakia’s economic pivot toward China, mirroring a broader shift within the Visegrad Four (V4). Slovak Prime Minister Robert Fico is following the path set by his Hungarian counterpart, Viktor Orbán, who has led the push to attract Chinese investment into Hungary’s EV and battery sectors. Slovakia’s decision to deepen engagement with Beijing will likely raise concerns among EU leaders wary of China’s growing influence within the bloc, further straining Bratislava’s already tense relationship with Brussels.
Quick takes on CEEasia developments
CHINA | A new China–Europe Arctic container express route has begun operations, with the first ship arriving in Gdańsk, Poland, on 19 October after a 26-day voyage from Ningbo–Zhoushan, China. Using the Arctic’s Northeast Passage, ships can reach their first European stop in about 20 days, roughly twice as fast as the Suez Canal route.
CHINA | A new weekly flight from Prague to Sanya—often dubbed the “Chinese Hawaii”—will begin operating on 21 December, with a technical stop in Bishkek, Kyrgyzstan. The 13-hour route will be serviced by a Boeing 737 MAX 9 operated by Kazakhstan’s SCAT Airlines.
VIETNAM | Vietnam is experiencing a significant increase in tourism from Eastern Europe following the introduction of a visa exemption for citizens of Bulgaria, Czechia, Hungary, Poland, Romania, Slovenia, and Slovakia. The policy aligns with Hanoi’s goal of diversifying its tourist base and is poised to boost the Vietnamese economy as interest from these markets grows.
VIETNAM | Vietnamese Prime Minister Phạm Minh Chính has urged the European Commission to send an inspection team to assess the country’s efforts to combat illegal, unreported, and unregulated (IUU) fishing, with the goal of lifting the EC’s “yellow card” on Vietnamese seafood exports.
SOUTH KOREA | Asiana Airlines is set to launch a regular direct service between Seoul and Budapest in summer 2026. The new route will make Budapest Asiana’s eighth scheduled destination in Europe.
INDONESIA | On 20 October, HunIndoTech 6.0, an annual business forum co-organized by the Embassy of Hungary in Indonesia, took place in Jakarta. The event aims to foster closer business and technology ties between the two countries, highlighted by an MoU signed between Hungarian IT-security firm i4p Informatics and PT Tata Sarana Makmur, an Indonesian technology and solutions provider.
