Brussels should develop “new defensive instruments” for sectors comparable to quantum computing and synthetic intelligence because it updates its safety insurance policies within the face of an more and more assertive China, the European Fee president has stated.

Ursula von der Leyen stated the EU wanted to ascertain a transparent line for commerce in extremely delicate applied sciences the place navy use can’t be excluded, or the place there are human rights implications, because it seeks to find out “whether or not investments or exports are in our personal safety pursuits”. 

The fee is for instance inspecting the creation of a mechanism for scrutinising abroad funding by EU firms in a small variety of delicate applied sciences that would improve the navy capabilities of rivals, she added.

The fee president’s speech comes because the US steps up stress on its allies to align nearer with Washington and harden their method to China as tensions rise over Taiwan and Beijing’s help for Russia’s warfare in opposition to Ukraine.

Von der Leyen, who held talks in Washington DC with US president Joe Biden this month, warned of a “deliberate hardening” of China’s strategic stance, including that Beijing was turning into “extra repressive at dwelling and extra assertive overseas”. 

The EU wanted to make sure that its firms’ capital, experience, and information weren’t used to reinforce the navy and intelligence capabilities of the bloc’s “systemic rivals” — of which China is one.

She added: “A robust European China coverage depends on sturdy co-ordination between member states and EU establishments and a willingness to keep away from the divide and conquer techniques that we all know we could face.”

Von der Leyen was talking forward of a deliberate journey to Beijing subsequent week with French president Emmanuel Macron. She has tried to steer a line on China that’s distinct from that of the US, stressing her purpose is to not “decouple” Europe’s financial system from China however reasonably a means of “de-risking”. 

The fee president stated she wished to depart house for discussing “a extra formidable partnership” and making competitors fairer and extra disciplined. “We don’t wish to minimize financial, societal, political and scientific ties,” she stated.

However her speech on the European Coverage Centre and the Mercator Institute for China Research represented what she described as a “sober evaluation” of relations and China’s strategic intentions. Chinese language president Xi Jinping, she stated, “primarily desires China to change into the world’s strongest nation”.

“The EU must outline its future relationship with China and different international locations in delicate high-tech areas comparable to microelectronics, quantum computing, robotics, AI, biotech and others,” she stated.

“The place dual-use functions can’t be excluded or human rights is perhaps implicated, there’ll have to be a transparent line on whether or not investments or exports are in our personal safety pursuits.”

The Netherlands just lately stated it will block exports of probably the most superior silicon chipmaking instruments to China after stress from the US.

Preliminary concepts can be introduced as a part of a brand new financial safety technique this 12 months, she stated.

The fee president additionally known as for EU unity over the “bolder and quicker” use of present commerce devices in areas comparable to overseas direct funding, overseas subsidies and so-called financial coercion.

Von der Leyen stated the EU would wish to “reassess” the Complete Settlement on Funding with China, a commerce deal that was not ratified and has stalled since 2021. “We’ve to recognise that the world and China have modified within the final three years, and we have to reassess CAI in gentle of our wider China technique.

“There are some areas the place commerce and funding poses dangers to our financial or nationwide safety, significantly within the context of China’s specific fusion of its navy and industrial sectors,” she warned.

This goes particularly for delicate applied sciences, dual-use items and funding that entails pressured know-how transfers. The EU, she added, can be “stress-testing our relationship to see the place the best threats to our resilience, long-term prosperity and safety lie”.

The EU additionally wanted to make its personal financial system extra aggressive and resilient, together with by strengthening and diversifying provides of uncooked supplies.

Referring to Xi’s go to to Russian president Vladimir Putin in Moscow final week, von der Leyen stated it was clear that China sees Putin’s weak point as a manner of accelerating its leverage over Russia.

“Removed from being delay by the atrocious and unlawful invasion of Ukraine, President Xi is sustaining his ‘no limits friendship’ with Putin’s Russia,” she stated. “It’s clear that the ability stability in that relationship — which for many of the final century favoured Russia — has now reversed.

“Any peace plan which might in impact consolidate Russian annexations is solely not a viable plan. We’ve to be frank on this level.”

She warned: “How China continues to work together with Putin’s warfare shall be a figuring out issue for EU-China relations going ahead.” Equally, China’s compliance with worldwide human rights obligations may also be a “check” for the way a lot the EU can co-operate with China.

Extra reporting by Andy Bounds in Brussels