Europe faces rising geo-economic rivalry between the United States and China over high technology and innovation. The controversy whether to allow a Chinese technology-giant such as Huawei to participate in the buildout of Europe’s 5G critical digital infrastructure is only the first among many similar conflicts to arise. Europe faces hard choices.

Economically, Europe faces 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 sovereignty or strategic autonomy in the field of high technology. 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 investigates Chinese policies regarding high technology and innovation striving to facilitate not only for rigorous academic analysis but also for policy advice in order to facilitate Europe’s ongoing realignment.