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EU chief urges caution in tech trade with China

European Commission President Ursula von der Leyen says the European Union must be prepared to develop measures to protect trade and investment that China might exploit for its own security and military purposes

Lorne Cook
Thursday 30 March 2023 12:37 BST

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The European Union must be prepared to develop measures to protect trade and investment that China might exploit for its own security and military purposes, European Commission President Ursula von der Leyen warned on Thursday.

Speaking before a trip to China planned for next week, von der Leyen said that it's important to stop ā€œsensitive technologiesā€ that could be used in security crackdowns or to restrict human rights from falling into Beijingā€™s hands.

ā€œChinaā€™s changing policies may require us to develop new defensive tools for some critical sectors,ā€ she said. ā€œWhere dual-use purposes cannot be excluded or human rights might be implicated, there will need to be a clear line on whether investments or exports are in our own security interests.ā€

The commission, the EUā€™s executive branch, manages international trade on behalf of the 27 member countries and defends their interests at the World Trade Organization.

Von der Leyen said that the EU should focus its defenses on ā€œsensitive high-tech areasā€ like microelectronics, quantum computing, robotics, artificial intelligence and the biotech sector.

ā€œWe need to ensure that our companiesā€™ capital, expertise, and knowledge are not used to enhance the military and intelligence capabilities of those who are also systemic rivals,ā€ she told academics at an event run by the European Policy Centre think tank and the Mercator Institute for China Studies.

ā€œWe have to look at where there are gaps in our toolbox which allow the leakage of emerging and sensitive technologies through investments in other countries,ā€ von der Leyen said. The focus, she said, should be on tech that ā€œcan lead to the development of military capabilities that pose risks to national security.ā€

The commission presidentā€™s speech comes as the EU reconsiders its frequently testy relations with China, notably in light of Beijingā€™s support for Russiaā€™s war on Ukraine. Von der Leyen said, though, that itā€™s important not to cut political, economic or scientific ties with such a ā€œvital trading partner.ā€

French President Emmanuel Macron is also due to travel to China next week and will take part in some events involving von der Leyen. Spanish Prime Minister Pedro SƔnchez was set to visit Beijing on Thursday and Friday at the invitation of Chinese President Xi Jinping.

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