The European Commission unveiled, on Tuesday 3 October, a list of technologies considered to be “critical”, the development and use of which require particular attention from the Member States. The list includes ten technologies, four of which are considered particularly sensitive: Advanced Semiconductor technologies, Artificial Intelligence technologies, Quantum technologies, Biotechnologies.
Three main criteria are cited by the European Commission to justify the choice of these four technologies: - their impact on the green and digital transitions; - their dual use in both civilian and military applications; - the potential human rights abuses associated with their use.
According to the Commission, the four “critical” technologies should be the subject of an in-depth risk analysis by the end of the year by the EU27, with the aim of listing the EU’s weaknesses in their design or use. No dedicated platform has been created for this purpose, and the Commission indicates that exchanges will take place via pre-existing channels.
According to the text of the recommendation, the analysis must be able to identify the main types of threat and take account of current geopolitical factors, while “mapping the interconnectivity of the technology ecosystem, in research and the supply chain”. Member States have until the end of December to submit their risk analyses for the four critical technologies.
As for the six other technologies listed in the recommendation, they will be the subject of discussions between the Commission and the Member States until the end of next spring to determine their relevance as “critical” technologies. For the time being, the Commission suggests the following products: - advanced navigation and connectivity technologies; - detection technologies; - space and propulsion technologies; - technologies linked to energy production; - robotic and autonomous systems; - advanced recycling technologies.
No control measures planned at this stage
This analysis phase in no way prejudges any action that may be taken in the future, the Commission insists. There is no mention anywhere of imposing restrictions on any of the ten technologies listed, because according to several European sources, risk analyses should be used as a basis for proposing measures.
However, this first step is closely linked to the EU’s economic security strategy presented in June, which sets out a range of concrete actions in the area of controls (see EUROPE 13205/7), as Thierry Breton, the European Commissioner for Internal Market, was keen to point out.
This Commission document refers to the possibility of the EU strengthening inbound investment screening, controlling exports of critical technologies and monitoring outbound investment.
Reducing risks vis-à-vis China
The recommendation does not name any countries presenting a potential risk in terms of industrial security, but it comes at a time when the EU is seeking to reduce its dependence on China and Russia. “There was an urgent need for Member States to adopt a common position on economic security issues, in the light of the current geopolitical situation”, insisted Thierry Breton. He also said: “We are aware of the risks of dependence, and our approach will enable us to make strategic investments in the Union’s competitiveness and prepare for the worst-case scenario”.
The risk assessment announced by the Commission also aligns the EU’s position a little more closely with that of the United States, according to Agathe Demarais, political expert at the European Council on Foreign Relations. The sectors on the list “fall under the remit of a potential EU tool to screen outbound investment, notably to China”, as envisaged by the Biden administration, she explains.
Agathe Demarais considers that this list is of crucial importance for private companies, even though “two-thirds of EU firms have no plans to shift away from China”.
Pressure from the European Parliament
Also in Strasbourg on 3 October, a large number of MEPs questioned the Commission on the action planned to combat unfair competition and unfavourable conditions on the Chinese market. The MEPs called on the Commission to take swift action to protect European companies operating in China.
The European Commissioner for Trade, Valdis Dombrovskis, like his colleagues, insisted on the need for a fact-based approach before taking any measures.
He also reported to Parliament on his visit to Beijing and his efforts to maintain an open dialogue on bilateral issues (see EUROPE 13257/19).
To see the Commission Recommendation: https://aeur.eu/f/8uy (Original version in French by Isalia Stieffatre and Léa Marchal)