Amid US-China tech rivalry, the position of Europe is crucial in shaping the future direction of global technology competition. European policies towards Chinese tech companies were initially divided,  and many European countries resisted pressure from the US to exclude Chinese telecoms giant Huawei from the rollout of their 5G networks. However, the last two years saw many European countries changing course and aligning closer with the US.

In this policy report, Dr Jufang Wang and Professor Denis Galligan identified two main core interests of Europe in the digital world: digital sovereignty and global technology leadership. They conducted an analysis of the perceived risks associated with Chinese tech companies in Europe. Based on the identified European interests and the risk analysis, they argue that while European countries’ concerns are understandable, it is not in the interest of Europe to follow a geopolitical approach to exclude Chinese tech companies; instead, Europe should resort more to technical solutions to tackle potential risks, rely more on its regulatory power to foster innovation and growth of local tech companies; and adopt a more multilateral approach to set global standards for emerging technologies and to promote European digital values.