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The EU is set to investigate bloc-wide export control measures in sensitive technology areas as part of its strategy to mitigate risks associated with its relationship with China and other authoritarian regimes.
The European Commission has identified four key sectors — semiconductors, artificial intelligence, quantum computing, and biotechnology — for evaluating the necessity of prohibiting the transfer of certain goods and services to other countries.
Věra Jourová, the EU’s digital chief, stated, “Technology is currently a central element in geopolitical competition, and the EU wants to be an active participant rather than a passive observer. To achieve that, we require a unified EU stance based on a comprehensive evaluation of the associated risks.”
However, Jourová emphasized that any action would only be recommended after consulting with the 27 member states, and the EU would remain committed to being an open and predictable global partner.
Brussels is facing challenges in forming a united front to safeguard its economic security in the face of export restrictions imposed by the US, China, and other countries.
Earlier this year, the US pressured the Netherlands to block the sale of advanced silicon chipmaking machines to China, prompting calls for the EU to unite and establish a bloc-wide regulatory framework.
Since the power to restrict exports for security reasons lies with individual member states, the European Commission is working to build a consensus following Ursula von der Leyen’s call for “de-risking” from a more assertive China.
However, internal disagreements have already diminished the ambitions of Brussels. French internal market commissioner Thierry Breton initially proposed an examination of 17 different technologies from a list of 50. Due to pressure from economic liberals and member states, this number was reduced to four, with the possibility of six additional technologies being assessed next year, including energy, robotics, and manufacturing technology.
The aim is to complete risk assessments for the initial four sectors by the end of 2023. These assessments will consider the potential use of these technologies in weaponry and human rights abuses, as well as the EU’s vulnerability to external supplies.
The EU will then determine appropriate actions using a “promote, protect, partner” approach. “Promote” involves investing in EU production, “partner” entails collaborating with other countries on mutual concerns, and “protect” may involve implementing export restrictions, according to an EU official.
However, some member states are skeptical about the process. An EU diplomat stated, “It is not feasible to conduct a credible risk assessment for an entire technology. Semiconductors or AI, in and of themselves, are not inherently dangerous or at risk. Certain aspects of these technologies should be safeguarded, while other aspects may benefit from openness.”
“The commission has set an overly ambitious timeline for conducting the necessary work to conduct more detailed analysis,” the diplomat added.
Additionally, on Tuesday, the EU strengthened its trade defense measures as the European Parliament overwhelmingly approved an anti-coercion instrument.
This instrument will enable Brussels to retaliate against countries, such as China, that employ tactics like trade embargoes to exert pressure on member states.
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