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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China's international clout and economic stability are rebalancing its relations with Europe, focusing more on cooperation and less on rivalry, according to former ambassador Wu Ken. European leaders have made a flurry of visits to Beijing in recent months amid US tariff threats and a push to acquire Greenland. Since 2019, the European Union has defined China as a cooperation partner, economic competitor, and systemic rival.

China's Commerce Ministry announced measures against 40 Japanese companies and entities on Tuesday, citing national security concerns over their military ties. It imposed export controls on 20 entities and added another 20 to a watch list for stricter reviews of dual-use items. The actions aim to curb Japan's remilitarization and nuclear ambitions.

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Quantum physicist Zhu Zijie has returned to China from Switzerland to join Fudan University as a Xianghui Young Scholar and associate professor at the Xianghui Academy. He aims to conduct cutting-edge research in cold atoms. Previously, he graduated from Peking University and studied at ETH Zurich, Albert Einstein's alma mater, staying for postdoctoral work.

China has implemented a new supply chain security regulation that elevates protecting industrial and supply chains to a national security issue, granting officials power to punish entities threatening vital resources. The 18-point regulation was passed and took effect on March 31, with its full text published on Tuesday. It comes as Beijing faces a turbulent global outlook.

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China's Supreme People's Court states that its courts "properly adjudicated cases involving artificial intelligence" and "accurately grasped the 'margin for error' in technological innovation". In a report presented to the National People's Congress, the court emphasized applying "resolute legal regulation" to acts exploiting AI that infringe on rights or disrupt social order, while promoting orderly development of the digital economy. The Supreme People's Procuratorate reported that China prosecuted 4,739 individuals last year in cases related to data security breaches in fields such as artificial intelligence and e-commerce.

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