Europe strengthens ties with Japan and US to reduce dependency on China

Europe strengthens ties with Japan and US to reduce dependency on China

To gain control over technology transfers, the EU is fostering closer ties with Japan and the US — French think tank.

According to French experts, the European Union remains stuck in a conflict over intellectual property with China. The Geneva-based WTO accuses Beijing of implementing new ‘anti-suit injunctions’ that prevent companies from suing Chinese counterparts in foreign courts for their unlicensed use of technology.

The Paris-based Institut Montaigne (IM) insisted the EU to strengthen its cooperation with Japan and the US on intangible technology transfers to China. Its aggressive industrial policies and military-civil fusion are a wake-up call for Europe.

Strengthening collaboration among hi-tech industries

Technological companies based in the EU, US, and Japan agreed to reduce their trade with China. Indeed, the US had already been in a tech war with China, so it formed an agreement with the EU to strengthen its efforts.

This partnership aims to reduce their shared dependency on China’s manufacturing prowess through strategic technologies. As such, last year, in June, the European Union Chamber of Commerce in China released a survey highlighting major concerns regarding technological transfers:

  • 16% of members of the European Chamber committed to making technology transfers
  • EU strengthened its regulations with China on intangible transfers through foreign direct investment and technological exports
  • 2% out of 20% of screened deals ended with a ban
  • China accounts for 2.5% of mergers and acquisition transactions
  • China is 7.5% accountable for greenfield projects

China’s policies reshape defence strategies

China might be completely separated from the West’s supply chains and its supporters due to Beijing’s foreign policy. However, the 20th National Party Congress will address these issues.

“The war in Ukraine provides the Chinese leadership with an opportunity to improve relations with the West by playing a constructive role,” Mathieu Duchâtel says, “but China may double down on its current tacit support for Russia.”