Companies operating in Europe could face regulatory costs, political risk and supply-chain exposure, analysts say, as contingency plans may be in the works.

Chinese firms must be extra vigilant in Europe as policymakers there weigh tougher measures against a pair of iconic hi-tech suppliers while France has threatened to suspend fast-fashion retailer Shein, analysts say, as the moves come after a seizure of Chinese-owned chipmaker Nexperia. The European Commission’s reported plan to force member states to phase out Huawei Technologies and ZTE gear from telecoms networks could mark a fresh regulatory hurdle while serving as a warning to roughly 3,000…

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