LAGOS, Nigeria (VOICE OF NAIJA) – The European Commission will present potential actions, like as export limits and screening of outbound investments, to keep coveted EU technology away from nations like China and prevent it from being used militarily by adversaries.
The Economic Security Strategy will be presented as a “communication” to EU parliamentarians and member states, whose leaders will be discussing relations with China in Brussels next week.
EU to present suggestions on safeguarding valuable technology with a focus on China
Although it won’t be a formal legislative proposal, the letter will outline policies that the 27-nation EU should take into account as it looks to “de-risk” from China and prevent sensitive technology from leaking out through exports or investments abroad.
The Commission must exercise caution because granting export licenses and considering security interests are national prerogatives that EU states will wish to keep.
A case in point is a Dutch law that essentially prohibits Chinese firms from acquiring ASML’s (ASML.AS) most sophisticated semiconductor manufacturing lithography instruments.
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The Dutch demanded limits for the entire EU despite acting alone. There is no clear method to accomplish this, say EU officials.
Although the EU does regulate the export of certain “dual-use” products that may have military uses, this does not apply to new technologies.
EU diplomat: “EU member states are not prepared to relinquish export controls collectively, but we will probably see something more along the lines of greater cooperation.”
According to EU diplomats, the group must carefully decide which risks it wishes to reduce and show that such risks cannot be controlled by current regulations.
The Commission might also recommend some sort of screening for international students wishing to pursue technical studies; the Dutch are discussing laws in this area.
