Fragmented Europe: Dealing with China as a technology and innovation power

China’s drive to become a global leader in science, technology and innovation has huge implications for the EU and its member states. On the one hand, China is becoming a strong competitor in industrial high-tech sectors and innovative science that used to be the stronghold of European actors. Advanced digital technologies made in China also increasingly pose risks to infrastructures in Europe. On the other hand, China offers itself as a resourceful counterpart for collaboration in research and development (R&D) and keeps attracting European scientists and businesses alike.

This report, the 12th compiled by the European Think-tank Network on China (ETNC), analyses how Europe is affected by China’s rise to a technological power and its increasing clout in shaping and creating innovation. Authors from 22 European countries have contributed to this study. The goal is to provide a nuanced picture of how those states interact with China in the field of innovative technologies, and to identify commonalities and differences in how they are affected.

Sweden: National security at home, free trade abroad

China’s dominance in several technology areas has become a controversial issue in Sweden, at least since the mid-2010s. Security aspects have shaped policy adjustments in the past five years, for example in foreign direct investment screening and public procurement legislation. Sweden continues to develop its technology exchanges with Chinese counterparts, while simultaneously restricting Chinese companies’ economic activities in Sweden. As China increasingly emerges as a competitor, Sweden’s policy might shift towards viewing the country as an economic challenge, rather than a security threat.

About ETNC

The European Think-tank Network on China (ETNC) is a gathering of China experts from a
selection of leading European research institutes. It is devoted to the independent
policy-oriented study of Chinese foreign policy and relations between China and European
countries as well as China and the EU.