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Sunday, September 8, 2024

EU to shield critical technologies from China amid trade tensions

The European Union is preparing to announce a list of critical technologies that it believes should not be easily accessible to countries that pose a threat to its security, interests, or human rights. The move is part of the bloc’s efforts to counter China’s aggressive trade policies and protect its economic sovereignty.

The European Commission, the executive arm of the EU, will publish the list on Tuesday, according to sources familiar with the matter. The list will include technologies such as quantum computing, advanced semiconductors, and artificial intelligence, which could enhance the military capabilities of some countries of concern, such as China.

The list will not impose an outright ban on the export or transfer of these technologies, but will require EU member states to apply stricter scrutiny and controls when dealing with third countries. The list will also serve as a basis for future legislation and cooperation with like-minded partners, such as the United States and Japan.

The EU’s initiative comes amid growing tensions with China over trade and human rights issues. The bloc has accused Beijing of engaging in unfair trade practices, such as dumping, subsidies, forced technology transfers, and market access barriers. The EU has also expressed concerns over China’s crackdown on democracy in Hong Kong, its treatment of Uyghurs in Xinjiang, and its assertiveness in the South China Sea.

In response, the EU has stepped up its efforts to diversify its supply chains, reduce its dependence on Chinese imports, and strengthen its own industrial base. The bloc has also adopted a new tool to impose sanctions on countries that coerce or blackmail one of its member states, such as China did with Lithuania over its diplomatic ties with Taiwan.

The EU’s trade commissioner Valdis Dombrovskis visited China last month to discuss the implementation of a bilateral investment agreement that was signed in December 2020. However, the deal has been put on hold by the European Parliament due to China’s sanctions on several EU lawmakers and entities over their criticism of Beijing’s human rights record.

The EU’s president Ursula von der Leyen has said that the bloc seeks to maintain dialogue with China, but also to defend its values and interests. She has called for a strategy of “de-risking” but not “decoupling” from China, which means reducing the bloc’s vulnerabilities while maintaining economic cooperation.

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