The EU announced proposals Tuesday that would restrict the countries in which European firms can manufacture sensitive technologies such as quantum computers. File Photo by James Atoa/UPI
June 20 (UPI) — The European Union unveiled plans Tuesday to secure both the export and overseas production of quantum computers, artificial intelligence, advanced microchips and other dual-use technologies seen as critical to economic security.
The European Economic Security Strategy, which would see Brussels getting much more involved in what and where companies do business, seeks to develop a “collective understanding of economic security” and protect it through due diligence and risk management, the European Commission said in a news release.
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Member states, which will discuss the EC proposal at a summit next week, will be asked to fully implement EU export controls on dual-use and consider the security risks of outbound investments with the goal of coming up with a draft initiative by the end of the year.
The plan calls for kick-starting the process with a review of the risks to the EU, including compiling a list of technologies “critical to economic security and assessing their risks with a view to devising appropriate mitigating measures.”
The strategy doesn’t specify any country or company by name, referring only to the Ukraine war as an example of how over-dependence on a single country for resources critical to economic security posed a significant risk.
However, it is likely directed at China as it builds upon themes from the Hiroshima G7 meeting in May where “de-risking” from China was debated in depth and similar moves by the United States, which earlier this year established a “strike team” to disrupt efforts to steal U.S. technology by China and Russia.
“Global integration and open economies have been a force for good for our businesses, our competitiveness, and our European economy,” said European Commission President Ursula von der Leyen.
“And that will not change in the future. But we also have to be clear-eyed about a world that has become more contested and geopolitical. This is why the topic of economic security has become a priority for us and for many of our partners.
“And today, Europe becomes the first major economy to set out a strategy on economic security,” von der Leyen said. “It will ensure Europe’s sovereignty, security and prosperity in the years to come.”
Executive Vice President and Commissioner for Trade Valdis Dombrovskis said the proposal sets out a plan to “de-risk — rather than decouple — our economic interdependencies on technologies we need the most.”
He said it would also bolster the EU’s place as a leader in the technology race globally.
EU foreign policy chief Josep Borrell said events of late had made it clear “how dependencies can be weaponized.”
“With this strategy, we are combining economic security policy measures to reduce our excessive dependencies while preserving a global open rule-based trade system. To do this, we must engage with the broadest possible range of partners,” said Borrell.
He pledged that as the high representative for foreign affairs and security policy, he would ensure that efforts to promote economic security would become an integral part of the EU’s external action “coherent with our broader foreign policy.”
