Executive Summary: Fragmented Europe: Dealing with China as a technology and innovation power
Executive Summary: Fragmented Europe: Dealing with China as a technology and innovation power
Publish Date: 2026-06-29 15:05:00
Source Domain: merics.org
As the analyses in this report show, engagement with China as a rising technological power differs in these 21 EU member states and the United Kingdom, but each of these countries is exposed one way or the other.
For some of the countries analysed in this report, exposure to Chinese tech is focused on consumer products; for others, it is an integral part of industrial value chains or infrastructure. There are significant differences in public debates regarding the risks associated with dealing with China as a technological power – from virtually no discussions to lively debates about the delicate balance between nuanced collaboration and targeted de-risking on tech- and innovation.
The degree of exposure and engagement with China in tech and innovation often coincides with a country’s economic exposure to China writ large. France, Germany, Italy and the United Kingdom can be counted among the countries that are most affected by China’s rise in tech and innovation sectors.
For France, ensuring national and European sovereignty and competitiveness is now structuring relations with China in the technology and innovation space. While China’s capacity for technological innovation has become undeniable, the perception of risk in France is increasingly palpable. Paris is looking to boost European competence in fields that touch on sovereignty and security, such as AI or quantum applications, digital infrastructure or strategic supply chains. This limits the scope of engagement with China (as well as with the United States).
Germany’s economy is faced with an existential crisis due to increasing competition from China in key industries like automotive, machinery, and pharma. The science community continues to debate the “risks of not engaging” to the detriment of security circles, who urge for a more conservative approach to prevent unwanted tech transfer. The government’s efforts to strengthen German competitiveness are only taking off slowly; efforts for…
