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The European Union Takes Measures to Safeguard Vital Technology Against China.
Economy Europe Technology

The European Union Takes Measures to Safeguard Vital Technology Against China.

On Wednesday, the European Union announced strategies to enhance the economic security of its member countries. These strategies include safeguards to prevent sensitive technology from being acquired by geopolitical competitors like China.

The city of Brussels has strengthened its arsenal of trade limitations in order to address potential threats to European economic stability, in response to Russia’s incursion into Ukraine and ongoing international trade disputes.

The repercussions of the conflict in Ukraine greatly impacted Europe, leading the group to seek out alternative energy options. Currently, they aim to prevent a similar dependence on China, who holds a strong monopoly in the production of green technology and essential materials.

EU officials announced on Wednesday a financial security plan that includes five strategies. These include strengthening regulations for evaluating foreign direct investment and starting talks on coordinating export controls.

The European Union (EU) has put forth proposed regulations aimed at maintaining the bloc’s competitiveness during the worldwide shift to environmentally-friendly technology and increasing production in Europe.

According to Margrethe Vestager, the top competition official of the EU, Europe cannot simply serve as a platform for larger players in this competition. Instead, we must have the ability to compete on our own terms.

She informed reporters in Brussels that our proposed action can reduce the risk of our economic interdependencies.

The package that was announced on Wednesday aligns with the EU’s goal of minimizing risk, but not completely separating from China. This initiative has been heavily advocated for by European Commission President Ursula von der Leyen.

Mathieu Duchatel, director of international studies at the Institut Montaigne think tank, stated that the shift in EU-China interactions has been the main factor behind the adoption of economic security, a concept that is unprecedented for the EU.

“Prioritize riskier transactions”

European Union officials have refuted allegations that the plan has been diluted and that certain measures will be implemented too slowly.

An effort is being made to update the EU’s law regarding reviewing foreign investments, however, some are suggesting more talks should be held, causing worries that any action may be delayed.

The commission expressed a desire to encourage more dialogue on improving the assistance for researching and developing technologies that have both civilian and defense applications.

The European Union also requires all of its member countries to implement screening processes, which may ultimately result in the prevention of investments if they are deemed to be potentially risky.

Valdis Dombrovskis, the EU’s trade commissioner, stated that he does not believe the package has been diluted.

He subsequently stated that the European Union’s goal was to prioritize riskier transactions and allocate fewer resources towards lower-risk ones.

The commission will have to navigate the negotiations carefully. National governments have the authority to make decisions about investment and export controls, so the commission must be careful not to overstep its boundaries.