EU to Assess Semiconductor and AI Tech Risks, Potentially Restricting Exports & Investments
The European Union (EU) is set to evaluate the potential risks associated with semiconductor, artificial intelligence (AI), quantum technologies, and biotechnology, which could result in restrictions on exports and investments by third countries like China. As part of its European Economic Security Strategy announced in June, the European Commission has identified four technologies to be assessed, with six more to be examined later.
The EU’s main concern is the risk posed by the use of these technologies for military purposes or human rights abuses by countries deemed as countries of concern. However, before implementing any measures, the EU will conduct a comprehensive risk assessment in collaboration with its 27 member states and consulting firms. In some cases, the response might involve stimulating investment or seeking alliances to reduce dependencies.
It is important to note that this risk assessment will not target any specific third countries, although the EU executive emphasizes that geopolitical factors will be taken into account to determine the extent of the identified risks. The goal is to mitigate economic vulnerabilities and decrease reliance on countries like China, although China is not explicitly mentioned in the economic security paper.
The choice of the four technologies for immediate risk assessment is based on their perceived likelihood of posing significant risks. Advanced semiconductor technologies, such as microelectronics and chip-making equipment, will be scrutinized, along with AI technologies like data analytics and object recognition. Quantum cryptography, communications, and sensing will also be assessed. Additionally, the evaluation will explore genetic modifications and new genomic techniques within the field of biotechnology.
While the EU completes its assessment by the end of this year, it may propose the evaluation of other technologies in early 2024. This move by the EU aligns with similar actions taken by countries such as the United States, Japan, Britain, and Australia, all of whom have conducted their own risk assessments.
The EU previously conducted a security assessment of its 5G networks, leading some member states to impose restrictions on the use of equipment manufactured by Chinese companies like Huawei and ZTE.
In conclusion, the EU’s decision to assess the risks associated with semiconductor and AI technologies, as well as quantum technologies and biotechnology, is part of its efforts to enhance economic security. By identifying potential risks, the EU aims to reduce dependencies and build alliances with like-minded countries, while also partnering with different countries to de-risk the situation. The final risk assessment will be determined in consultation with its member states and consulting firms, and the EU’s response may vary depending on the severity of the risks.
