EU bans Chinese entities from critical tech programs including AI and chips

The European Union has excluded Chinese organizations from its most advanced collaborative technology programs, covering fields like artificial intelligence, quantum technologies, semiconductors, and biotechnology. The EU cites concerns over research security and potential military applications. Chinese space scientist Wu Ji expresses doubt that the policy will significantly harm China and suggests it may instead isolate Europe further.

The European Union's new rules, effective this year, bar organizations based in China from applying for grants under its €93 billion (US$110 billion) Horizon Europe program in designated "critical areas." These include artificial intelligence (AI), quantum technologies, semiconductors, and biotechnology. The EU justifies the measure by citing risks to research security and potential military applications.

Under the rules released in December, researchers outside China in these fields must demonstrate that their partner institutions are not directly owned or controlled by Chinese entities. The document dedicates five pages specifically to restrictions on China.

However, experts in the affected sectors suggest the ban's impact may be limited, as collaboration in some areas has already reached historic lows. Chinese space scientist Wu Ji doubts the policy will hurt China significantly and notes it may instead "make Europe appear more isolated."

Past collaborations between China and Europe in space research, such as the Chinese Society of Space Research's involvement in the SMILE satellite mission and the Double Star project, have been notable. Yet, ties have diminished in recent years. Scholars like Cao Cong from Duke University and Joy Zhang from the University of York indicate that current cooperation levels are already minimal.

Analysis from the Quincy Institute highlights how such restrictions underscore the EU's growing caution regarding technology transfers.

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Piyush Goyal shakes hands with EU official at India-EU FTA signing, with economic symbols and subtle US criticism inset.
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India-EU free trade agreement finalized amid US criticism

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Commerce Minister Piyush Goyal defended the newly concluded India-EU free trade agreement against domestic criticism, emphasizing its benefits for economic growth. The deal addresses key issues like carbon tariffs and mobility for professionals. However, US Treasury Secretary Scott Bessent expressed disappointment, accusing Europe of prioritizing trade over support for Ukraine.

The EU Commission has presented a revised cybersecurity law to better fend off attacks and reduce dependencies on high-risk third countries. In particular focus: Chinese companies like Huawei and ZTE, which are to be effectively excluded from 5G rollout. This follows a recent hacker attack on the Eurail platform.

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The United States has warned of restrictions on major European Union service providers in retaliation for EU tech regulations targeting American companies. This escalation follows a $140 million fine imposed on Elon Musk's X under the EU's Digital Services Act, drawing sharp criticism from the Trump administration. European officials maintain that their rules ensure a fair playing field for all businesses.

China is intensifying bilateral diplomacy to ease trade tensions with the EU, offering market access, visa facilitations, and symbolic gestures to select member states. Even as ties with Brussels sour, Beijing courts European governments aggressively. Examples include aircraft orders in France and reopened beef and pork markets for Ireland and Spain.

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In the wake of China's January 7 ban on dual-use exports to Japan's military—prompted by politician Sanae Takaichi's Taiwan remarks and already protested by Tokyo as 'extremely regrettable'—analysts warn of vulnerabilities in the semiconductor sector, where Japan holds key leverage amid escalating tensions.

The United States announced on Wednesday that it will work with Japan and European countries to develop an action plan for securing critical minerals supplies, amid concerns over potential Chinese export restrictions on rare earths. The initiative seeks to establish a trade bloc with allies to stabilize procurement. The U.S. Trade Representative's office indicated exploration of a plurilateral trade initiative with like-minded partners.

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At a University of Hong Kong seminar, former US diplomat Klein stated that China's hopes for Europe to pivot toward Beijing amid deteriorating US-EU ties are misplaced. He highlighted Brussels' core task of navigating US-China rivalry while seeking balance between the two.

 

 

 

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