Policy recommendations
In recent years, the European Commission has
been endeavouring to reconfigure its R&D ties with China, navigating
technological Tide across various STI sectors. China is recognized as important
knowledge producer, however in order to
protect sensitive military or technical information Chinese participation in
STI is mainly centred on sustainable economy, ecosystems, public health, nanomaterials,
food, agriculture and pollution reduction. This
adjustment comes in response to longstanding apprehensions about intellectual
property issues and the potential unwitting contribution of European
researchers to Chinese military technology development, especially in the light
of the Sino-Russian collaboration. To tackle these issues, the EU should:
- Address
limitations and risks for collaboration: geopolitical, IPR, data sharing and
processing, possible dual technologies use and military implications ;
- Emphasize
the joint research efforts on cross-cutting themes in STI: carbon neutrality, climate
change, healthcare, resource depletion, sustainable development policies & practices;
- Enhance data
sharing security within the EU and reduce interaction with China in the
critical technologies areas: biotechnology, big data, AI, deep space, and
quantum systems;
- Protect
critical technology areas: military, semiconductors, AI, quantum systems,
biotechnologies;
- Increase
macro policy coordination to optimize and balance cross-country risks and limitations
to facilitate Sino-EU collaboration in important areas of STI.
Introduction
The European Union (EU) views China as a
long-term strategic partner, emphasizing science, technology, and innovation
(STI) through initiatives like the 2019 Strategic Outlook and the Regional
Multi-annual Indicative Program (MIP) highlighting key collaboration
priorities. This partnership aims to tackle global challenges and promote
shared values, particularly the Sustainable Development Goals (SDGs) and
climate change commitments. While
collaboration has potential benefits, the EU-China relationship has evolved
from a "negotiating partner" to an "economic competitor"
and "systemic rival," especially concerning sensitive technologies
like DNA genetic engineering, AI, cyber security, quantum computing, and
advanced microchips. Both China
and the EU recognize the significance of technological advancement for future
sustainable growth, addressing the UN Agenda 2030.
China’s Belt and Road Initiative (BRI) focuses on
win-win cooperation and aligns with multiple SDGs from UN Agenda 2030,
promoting infrastructure, innovation and development across BRI countries and
beyond. While Chinese investments in Europe, initially welcomed, provided
economic benefits but later raised concerns over intellectual property and
potential security implications leading to a cautious approach from number of
EU countries. The paper provides evidence from Greece, Italy, Portugal and
Germany.
The Russian military aggression in Ukraine in
February 2022 has resulted in significant geopolitical shifts, introducing new layer of complexity for the EU-China STI collaborations. The EU's
response to the war, which includes sanctions against Russia and support for
Ukraine has also led to a change in research priorities
and increased scrutiny of Chinese investments in critical infrastructure
and technologies due to security concerns. Therefore, future collaborations
should take a more balanced approach, focusing on non-sensitive areas such as
Agenda 2030, Climate Change, Circular Economy, public health, food, and
agriculture, while using emerging technologies with caution: artificial
intelligence, facial recognition, smart drones, ransomware, etc.
The EU-China
history of STI collaboration in the context of BRI
China includes Europe in the Belt and Road
Initiative (BRI) for FDI, trade, innovation, and infrastructural projects, and
to serve as a connecting bridge between the Indian Ocean and Europe across the
Red Sea. Chinese investments proved to be beneficial for
Europe following the euro crisis in 2010-2012. The timely intervention of the
first BRI investment projects at the end of 2013, particularly in Greece,
Italy, and Spain, played a significant role in this regard.
The Chinese BRI massive investments went to
Italy already in 2014 towards energy Eni, electricity Enel machinery Fiat
Chrysler, and in 2015 the state-owned company ChemChina purchased 16,87 % of
stocks from Italian tier maker Pirelli, investing 7,7 billion USD with
involvement of newly founded Silk Road Fund (main areas: sustainable
development, infrastructure, energy and resources, industrial cooperation),
increasing the positive public and political perception of China. The
collaboration with Italy continued throughout 2019 when the Italian Premier
Giuseppe Conte signed the Memorandum of Understanding with China’s President Xi
Jinping in Rome. The MoU was followed by number of agreements with Port of Trieste
and Genoa, where the infrastructural investment Platform from China
Communication Construction Company took place.
The change of spirit towards Chinese
investments came with the new Prime Minister of Italy M.Draghi in 2021, when
the Pirelli contract came to an end, and again in 2023, when Italy left the
BRI. However, in May 2024, Stellantis, which includes Italy’s FIAT, partnered
with Chinese electric car startup Leapmotor to sell EVs in Europe followed by
Italian Prime Minister Georgia Meloni's visit to China to resume Sino-Italian
collaboration, signing a 3-year plan with the Chinese government, which
envisages collaboration in key areas of Chinese technological excellence –
electric vehicles and renewable energy.
Another important investment within the BRI framework in Europe was China’s COSCO Shipping’s 2016 purchase
of 67% of the Port of Piraeus (Greece), which amounted to almost 312,51 million
USD initial investment as part of the trade collaboration with Europe. The port
of Piraeus in collaboration with Vodafone is committed to embracing 5G and IoT
digitalization through the implementation of a cutting-edge LTE network,
benefiting from substantial investments in its infrastructure by COSCO. China
sees its investment in Greece as a success with increased trade and job creation,
but European experts believe that few new jobs were created and that the trade
benefits China more than Greece or the EU.
Portugal is involved in the Belt and Road
Initiative with Chinese green investments. China leads in electric vehicle
production, aligning with Portugal's low-carbon goals and Industry 4.0
technology advances. Chinese high-tech companies like Tederic, Ningbo David,
Medical Device, and Shyahsin are expanding in Portugal.
The EU aims to become carbon neutral by 2050
thanks to European Green Deal, emphasizing a transition to a Circular Economy, building renovation, energy innovation, and
sustainable practices. China, with the highest-level CO2 emissions,
is striving to become a global climate change leader by achieving carbon
neutrality by 2060, promoting sustainable investments in renewables,
zero-carbon-emission zones, and the advancement of green technologies.
In accordance with the EU-China 2020
Strategic Agenda for Cooperation, both parties have committed to
"cooperating to establish a strategic policy framework for green and
low-carbon development to actively address global climate change."
Particularly, in 2023, the Chinese and German governments signed a Memorandum of Understanding to launch Climate
and transformation dialogue.
The city of Duisburg plays a pivotal role in
the Belt and Road Initiative (BRI) with 100 Chinese companies present,
showcasing green investments for a carbon-neutral economy in Germany. Duisburg
is a key hub for transporting goods from China to Europe. Chinese tech company
Huawei has provided IoT platforms for the city’s private Wi-Fi and 5G networks,
but plans for further collaboration are on hold. There were concerns about
Chinese investments in critical infrastructure and human rights violations.
Despite this, a significant deal was finalized in 2023 involving the Hamburg
Port with investments from COSCO and "Hamburg Haven and Logistics
AG". Germany and other EU countries aimed to limit Chinese investments in
their critical infrastructure due to possible security implications.
The initial enthusiasm for Chinese Foreign
Direct Investment (FDI) in Southern European countries was not universally
embraced. Subsequently, prominent EU governments criticized these investments,
characterizing them as predatory, competitive, and potentially subject to
future misuse. This raised apprehensions regarding their prospective military
application, "debt-trap diplomacy," or utilization as leverage in
negotiations. Furthermore, China's imposition of constraints on foreign
investments within its domestic market has led to an increasingly imbalanced
EU-China partnership.
EU-China STI
strategic collaboration areas in the context of Agenda 2030
Although China has been
identified as a competitor and systemic rival by the EU, it is important to
remember that it is also simultaneously designated as a long term strategic
partner in some issue areas. This is emphasized in various EU Flagship Projects such as the 2019 Strategic Outlook Joint Communication, the Regional Multiannual Indicative Program for
Asia and the Pacific 2021-2027 correlating
with the 14th Five-Year Plan for China, highlighting STI as core elements for
future international cooperation. This partnership is progressively intricate,
as the EU declares collaboration with China to address global challenges and
promote shared values and interests, with a key emphasis on upholding
international commitments such as the Sustainable Development Goals and the Paris Agreement on Climate Change. Even though the advantages of collaboration
are evident, the EU-China relationship has been increasingly complex over the
past decade, from the enthusiasm of “negotiating partner” to “economic
competitor” and “systemic rival”
especially in Science, Technology, and Innovation (STI), particularly regarding
four key technologies the EU is sensitive about: DNA genetic engineering,
AI-powered systems, quantum computing, and cutting-edge microchips, which might
have dual use with negative military and security implications for the EU.
The Chinese Belt and Road Initiative (BRI), or One Belt One Road, stands as the
cornerstone of President Xi Jinping's foreign policy. According to official
Chinese documents, the Belt and Road aims to promote win-win cooperation,
common development and prosperity, peace, openness, inclusiveness, mutual
understanding, and trust, aligning with the values of the 2030 Agenda. As an
infrastructure and innovation development project, BRI primarily focuses on
SDG.9 “Industry, Innovation and Infrastructure”, possibly contributing to other
SDGs in the STI area due to their interlinked nature:
- SDG.3. “Good
health and wellbeing”: e-health, IoT, 3D printing, nanomedicine,
biotechnologies for environment and health;
- SDG.7.
“Affordable and clean energy”: solar panel energy, bladeless wind energy, 3D
printed solar energy trees, solar energy from waste etc.;
- SDG.8.
“Decent work and economic growth”: AI, digitalization, smart buildings, etc.;
- SDG. 9
“Industry, Innovation and Infrastructure”: Industry 4.0, technologies 4.0, 5G,
Big Data, AI technologies, green innovations;
- SDG.11.
“Sustainable cities and communities”: e-town, smart car, digital citizen, green
urban planning, smart waste management, IoT, smart water management etc.
- SDG.17.
“Partnerships for the goals”: knowledge sharing in STI, AI, digitalization,
co-creating sustainable technologies, and capacity building for STI.
Chinese BRI
aims to align closely with the SDGs, both of which the European Union and China
as two large global players are committed to.
Nowadays, the BRI has aspirations to become a
new digital “Silk Road Initiative”, connecting Asia with Europe and Africa via
marine and land routes, providing greener investments in infrastructure and
technology, increasing connectivity, and transitioning to carbon free energy.
The integration of science, technology, and
innovation (STI) is vital in the pursuit of the Sustainable Development Goals
(SDGs), considering its complex nature driven by the rapid pace of
technological advancements and new technologies development (AI). STI has the
potential to transform the current business model to be more inclusive and
sustainable by means of new technologies and digitalization. Therefore,
fostering innovation and partnerships is essential in addressing the
multidimensional and interconnected challenges of sustainable development,
particularly concerning striving for eradicating poverty, well-being for all,
healthy life, clean water and sanitation, climate change, resources depletion,
decent work, responsible production and consumption etc.
European Union
and China framework and background bases for STI cooperation
For the European Union, China is the second
most important economic partner, however the STI collaboration has waned over
the past decade due to the suspicion of potential dual technologies use,
Intellectual Property Rights (IPRs) violations, transparency, and reciprocity
issues with exception of climate
change, public health, environment, energy transition, sustainable food and
agriculture areas.
China’s STI policy has undergone a transformation,
from Deng Xiaoping’s focus on technology transfer, special economic zones (SEZ), 863 Program, and opening
up, to Hu Jintao’s “Indigenous innovation” (自主创新), focus on R&D, Sustainable Development
and Xi Jinping’s ”new era” emphasis on
self-reliance “Made in China”, AI, 5G, digital innovations and broader
geopolitical vision across BRI. Internal challenges and the global context have
shaped Chinese innovation-related policies. They have evolved from embracing
learning from others, and collaboration to self-reliance and aspiration for
leadership in emerging technologies.
The European Union and China collaboration
history in the STI area started in 1998 with the Science and Technology
Cooperation Agreement and was reinforced in 2012 by the EU-China
Innovation Cooperation Dialogue, EU Regional Multi-annual Indicative Program (MIP) and complemented in 2019 by EU-China Strategic Outlook where the EU is discussing with China the
Roadmap to future cooperation in the aforementioned fields. Such cooperation
foresees future collaboration between partners from industry environment,
academia as well as policymakers.
Moreover,
in 2015, the European Union signed the Arrangement with National Natural Science
Foundation of China, which showed commitment from both sides to develop
and expedite different types of research mobility and enable new partnerships
in the area of science, technology and innovations with key Flagships: Climate Change,
Biodiversity, Biotechnology and Agriculture. The 2024 EU and China commitment on the cooperation in the field of CE is important international stride towards realizing a carbon-free
future by 2050-2060. The Circular Economy stands at the core of EU policies,
offering solutions to resource depletion, biodiversity loss, climate change,
and paving the way for sustainable development and growth while safeguarding
the environment. In March 2024, the EU conference concerning Climate Change 2040 took place in Beijing, where scientists and
policymakers discussed the future development perspectives in the area.
In 2022, the EU and China signed an
Administrative Arrangement for the period from 2021-2024 to establish a Co-funding Mechanism. The mechanism will support research
projects on Food, Agriculture, Biotechnology (FAB), Climate Change, and
Biodiversity (CCB). It will provide funding for Chinese entities involved in
these projects and will be supported by the Ministry of Science and Technology
of the PRC.
Europe leads global innovation, investing
almost 100 billion EUR in Horizon Europe (HE) 10th Framework Program, the largest
initiative for 2021-2027. In
line with the Global Approach and the ongoing discussions on the ‘Joint Roadmap
for the future of EU-China cooperation in science, technology, and innovation’,
cooperation between European and Chinese researchers and entities under Horizon
Europe is encouraged mainly under Food, Agriculture, and Biotechnology, and
Climate Change and Biodiversity flagships.
China also participates in European
Cooperation in Science and Technology (COST) as
non-COST member, providing Chinese academics with networking opportunities and
capacity-building initiatives to address various scientific, technological, and
societal challenges through university collaborations less influenced by
geopolitics.
However
it may be, the 2023 Business
Confidence Survey performed by the EU Chamber of Commerce in China, discovered that 45%
of respondents feel that China's enforcement of intellectual property
protection laws is inadequate, with instances of forced technology transfer
being reported. Access to vital Chinese databases, such as CNKI, has been restricted for
EU researchers and businesses in open science and access. This lack of
reciprocity in openness poses challenges in following the cooperation roadmap.
EU-China STI collaboration:
navigating the complex issue
The EU's approach towards China at the
current stage is a nuanced balance between defensive risk management and the proactive
pursuit of mutually beneficial partnerships and collaboration.
The growing imbalances between Chinese and
European partners underscore the need for a fresh EU-China collaboration
strategy, particularly focused on sustainability, transparency, IP respect, and
equality based on the 3 P's: Promote, Protect, and Partner. It is imperative
for the EU to adopt a more forward-looking approach to China and to engage in
negotiations for collaboration on equal footing in key developmental areas such
as climate change, human well-being, innovation, and social issues to ensure the
establishment of mutually beneficial future partnerships.
The realization of the Sustainable
Development 2030 Agenda, “The Future We Want” necessitates collaboration on a
global scale. Addressing critical global challenges like 'No Poverty,' 'Climate
Change,' and 'Partnership for the Goals' calls for concerted efforts and
engagement from multiple stakeholders across continents and countries.
Therefore, the active participation of major global players is essential.
Drawing from the momentum of the BRI
Initiative and Agenda 2030, the China-EU collaboration has the opportunity to
not only explore new markets and strengthen financial and people-to-people
connections but also to facilitate the transition to a more sustainable
business model, thus enhancing its economy, competitiveness, political image,
innovation development, while having the UN 2030 Agenda at its core.
The Belt and Road Initiative (BRI)
intertwines perfectly with the goals of Agenda 2030, possibly making an
important shift in development paradigm policies and practices. The EU and
China are dedicated to addressing global challenges through green investments
and infrastructure development, transitioning from fossil fuels to renewable
energy sources, and fostering a more inclusive, smart and resilient business
model. The optimal strategy involves finding a compromise between competition
and collaboration on a reciprocal and transparent basis - maximizing gains
while mitigating risks.
The ongoing Russian war in Ukraine has
intensified political tensions and altered global alliances. It has affected
collaborations between China and European nations in several ways: disrupting
collaborative projects and shifting European focus towards security,
cybersecurity, energy security, and defence-related technologies. Additionally,
economic sanctions and trade barriers have increased, leading to heightened
strategic competition. There is a growing emphasis on protecting intellectual
property rights (IPR) and technological sovereignty, resulting in a more
self-reliant and competitive science, technology, and innovation (STI)
environment.
To move forward
the EU-China relationship, a strategy focused on sustainability, transparency,
and intellectual property respect is recommended. The collaboration between the
EU and China presents an opportunity for genuine partnerships that emphasize innovation,
and advancement in science and technology to respond to pressing global
challenges like climate change, pandemics, resource depletion, energy
transition, environmental degradation etc. However, for these
partnerships to succeed, it is crucial that to address security concerns,
including the protection of sensitive technologies, their possible dual use,
and cyber security. By focusing on a balanced relationship that promotes technological
cooperation while safeguarding intellectual property and security interests,
the EU and China can contribute to sustainable global growth, helping achieve
the goals outlined in Agenda 2030.
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Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or European Research Executive Agency (REA). Neither the European Union nor the granting authority can be held responsible for them.
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