Europe faces rising geo-economic rivalry between the United States and China over digital technology. The controversy whether to allow a Chinese technology-giant such as Huawei to participate in the buildout of Europe’s 5G critical digital infrastructure or export controls of advanced semiconductors are only one of many contentious digital policies that affect Europa-China relations. Europe faces hard choices.

Economically, Europe has to deal with a quickly emerging Chinese technology sector. In many fields, Chinese companies have rapidly developed into highly innovative and competitive actors. China’s tech industry is profiting from an unlevel playing field. Soft loans, acquisitions of innovative European companies with financial support of the Chinese party-state or lower data protection regulations are only a few examples that leave Europe with the question how to protect its economy without turning protectionist. Similarly, Europe needs to protect its intellectual property while at the same time profits from research cooperation with the People’s Republic.

Technological dependencies further create political vulnerability. At a time of US-Chinese technological decoupling, Europe is squeezed in between the two technological great powers. This raises the question how to diversify and secure Europe’s digital supply chains and to what extent Europe should develop economic security. Crucial to this is not just a narrow understanding of risks that Europe has to tackle but also the question how to strengthen the continent’s technological and economic competitiveness. Cybersecurity concerns come with the deep engagement with Chinese (and to some extent US) suppliers of digital technology, particularly in cases when this affects critical digital infrastructure. What does Europe need to do in order to secure a robust, reliable and integer digital ecosystem?

Finally, European and Chinese approaches to digital technology diverge ideationally as both political entities support different sets of norms. For example, Europe’s preference for private self-regulation is mirrored by China’s state-directed policy.

This working group discusses Chinese digital technology policies and its implications for Europe. It explicitly strives to facilitate not only rigorous academic research but also policy advice for European policymakers.