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## Rising Tensions Between EU and China

With the ever-increasing instability in the geopolitical landscape, European Union’s relations with China are also facing mounting turbulence. The core issues fueling these tensions revolve around the pursuit of technological supremacy, economic interests, and national security concerns.

EUcompetition chief Margrethe Vestager emphasized the importance of technology leadership in a world driven by technology during a recent speech. She highlighted the significance of controlling critical technologies and their supply chains for maintaining a competitive edge in the global arena.

In line with this focus on critical technologies, Vestager announced a fresh round of investigations into Chinese wind turbine producers supplying wind parks in several European countries. These investigations were prompted by concerns over unfair competition arising from foreign subsidies that give non-European manufacturers an advantage in the market. Industry estimates suggest that Chinese wind turbines can be up to 50% cheaper than their European counterparts, raising alarm bells about the impact on the EU’s cleantech sector.

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## Addressing Clean Tech Concerns

The dominance of China in solar technology production, accounting for 80% of the global market, poses a significant challenge for the EU. With less than 3% of solar panels in the EU being produced domestically, there is a pressing need to secure the bloc’s clean energy supply chain.

Vestager underscored the need to prevent a repeat of the challenges faced in the solar panels industry in other critical sectors like electric vehicles, wind energy, and essential chip manufacturing. The EU aims to bolster its domestic production capacity to meet at least 40% of its green energy demand by 2030, signaling a shift towards self-sufficiency in clean tech.

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## China: Partner, Competitor, and Rival

Describing China as a “systemic rival and partner,” EU officials acknowledge the complex nature of the relationship with the Asian powerhouse. While China remains a crucial trading partner for the EU, concerns have been raised about its alliances, assertive actions, and potential threats to European interests.

Recognizing the strategic importance of reducing dependence on external sources, the EU is focused on de-risking its economy, particularly in critical areas like clean tech. Initiatives such as the Net Zero Industrial Act and Critical Raw Materials Act aim to strengthen domestic manufacturing capabilities and reduce reliance on imports from countries like China.

**AI legalese decoder assistance:** The AI legalese decoder can aid in analyzing the legal implications of EU-China trade dynamics and diplomatic relations. By decoding complex legal language and regulatory frameworks, it can provide valuable insights for policymakers and stakeholders navigating the evolving landscape of international relations.

## Securing Future Technologies

In addition to cleantech, the EU is ramping up efforts to safeguard critical technologies such as AI, quantum computing, robotics, and biotech from potential threats, including dual-use applications with military implications. The bloc is considering allocating resources from its research programs to foster the development of dual-use technologies and bolster digital sovereignty.

As semiconductor chips emerge as a pivotal component in digital sovereignty and economic de-risking strategies, the EU is actively supporting initiatives to boost domestic chip production and limit China’s influence in the semiconductor industry.

**AI legalese decoder assistance:** The AI legalese decoder can play a crucial role in analyzing the legal frameworks and intellectual property rights related to critical technologies in the EU. By decoding complex legal texts and providing insights into regulatory requirements, it can support decision-making processes and strategic planning for safeguarding future technologies.

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