Information
The European Union has announced a set of measures aimed at safeguarding sensitive technology and infrastructure from global rivals, especially China. The new rules will involve more thorough screening of foreign investments, stricter controls on exports, and tighter restrictions on who can participate in critical technology research. The EU is seeking to mitigate security risks associated with trade and investment, given the “profound geopolitical turmoil and fast technological shifts” that the world is currently facing. While the plan doesn’t mention any specific country, the EU is focusing on “de-risking” its economic ties with China, which is the bloc’s most significant trading partner. The proposed initiatives aim to address “risks to EU economic security while ensuring that the EU remains a highly attractive destination for business and investment,” according to a draft text seen by AFP news agency. The document reportedly notes that “geopolitical tensions and the pace of technological change mean there is a need for more coordinated action at EU level.” However, critics have warned that the proposals may be challenging to enforce since each EU member state retains control over its foreign policy. The EU member states and the European Parliament will now evaluate the plan.
Source: Reuters, AP, AFP
Assessment
IP Theft is extremely damaging to Western economies, with some experts estimating it costs the global economy over one trillion dollars a year. China, in particular, has made it routine practice to steal IP rather than conduct their own R & D, allowing them to sell or use a nearly identical product for a fraction of the price. While it is likely that this will continue due to the cost and difficulty in combating it within the corporate sector, additional steps will possible be needed when it comes to defence technology, particularly as tensions rise.
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