EU Identifies Sensitive Technologies and Targets China in Trade Policies
Brussels, the capital of the European Union, has taken steps to safeguard sensitive technologies from falling into the wrong hands and to counter China’s aggressive trade policies. The EU has revealed a list of critical technologies that it believes should be closely monitored due to their potential to compromise the bloc’s security if misused. These technologies include advanced semiconductors, artificial intelligence (AI) including cloud computing, quantum technologies, and biotechnologies such as genetic modification techniques.
In addition to identifying sensitive technologies, the European Parliament has approved a mechanism that enables the bloc to impose tariffs, restrict investment, and limit access to public contracts for countries engaging in economic blackmail. This response comes after a trade dispute between China and EU member Lithuania, which faced trade restrictions when it strengthened ties with Taiwan.
The deteriorating relationship between China and the EU has caused concern in China, prompting calls for a frank, sincere China-EU dialogue on economic and trade issues. There is apprehension about the potential adverse effects of decoupling the Chinese and EU economies, as both countries have benefited from globalization in recent decades.
The EU’s Executive Vice-President Valdis Dombrovskis, who recently visited China, has raised concerns about Europe’s growing trade deficit with China, which currently stands at €400 billion. While the EU seeks to maintain dialogue with Beijing, it has intensified efforts to address critical trade imbalances with China without completely severing economic ties. European Commission President Ursula von der Leyen has emphasized the need for Europe to produce more goods on the continent and collaborate with friendly nations to ensure economic security.
To reduce dependency on China for critical raw materials, the EU is preparing legislation that aims to diversify sources. There are concerns that some technology exports may enhance the military capabilities of certain countries, prompting the need for the EU to assess which technologies may be potentially damaging for the bloc.
Brussels has also recently initiated a probe into Chinese electric car subsidies due to allegations of unfair competition in the EU market. This investigation has raised concerns about a potential trade war with Beijing, as the EU could implement tariffs on Chinese electric cars above the standard 10 percent EU rate if unfair practices are identified.
The EU is determined to protect its interests and security by closely monitoring sensitive technologies and implementing measures to counter aggressive trade policies. These actions highlight the bloc’s commitment to maintaining economic stability and safeguarding critical industries.
