Europe's tech dependence on China threatens security and innovation

Europe is struggling to keep pace in the development and deployment of key technologies. The region’s heavy reliance on China for critical supplies and components is raising concerns about security, resilience, and economic independence. The EU faces a growing gap in semiconductor production. By 2030, it may lack 12.7 million wafers annually, with China expected to dominate chip imports. Chinese control of around 30% of front-end semiconductor capacity makes this a priority for the EU’s de-risking strategy.

European firms like Nexperia and ST-Micro rely on China for much of their back-end manufacturing. This dependence leaves them exposed to potential export restrictions. Similar vulnerabilities exist in battery technology, where Chinese export controls are disrupting EU industrial plans.

Chinese solar inverters, widely used in Europe, also pose cybersecurity risks due to remote access capabilities. Chinese battery producers are expanding in Europe, sparking worries over technology transfer and intellectual property protection. Meanwhile, Chinese battery electric vehicles continue to dominate globally, with firms holding 65% of battery production. The EU is considering stronger measures to address these risks. A proposed update to the Cybersecurity Act could allow the Commission to restrict products from suppliers posing major security threats. These steps aim to reduce dependence and safeguard Europe’s technological future.