Brussels has increasingly focused on tackling threats to the European economy after coronavirus pandemic-related supply chain disruptions and then the energy crisis caused by Russia's 2022 invasion of Ukraine exposed its vulnerabilities.
The European Commission recommended countries review "risks to economic security" between Europe and non-EU countries in three sectors: semiconductors, artificial intelligence and quantum technologies.
There is growing concern of know-how falling into "the wrong hands", it said, but did not mention China, with which it has increasingly tense trade relations.
"The commission's ultimate objective is to prevent EU outbound investments from negatively impacting the economic security of the union," it said in a statement.
The EU made no reference either to the war in Ukraine or to the return of Donald Trump to the White House in the United States. But the EU's trade chief Maros Sefcovic referred to the "geopolitics of today" which brings "potential risks".
"The assessment of EU outbound investment in key technology areas will allow us to have a clearer picture of potential threats we face," Sefcovic said.
Trump has threatened sweeping tariffs on China and even US allies including the EU.
The commission wants countries to review ongoing and past transactions, going back to January 2021, and says they must provide a full report on the risks identified by March 2026.
US tightens controls on advanced chips to curb flow to China
Washington (AFP) Jan 15, 2025 -
The United States unveiled further export controls Wednesday on advanced computing semiconductors, increasing due diligence requirements for businesses as it seeks to prevent diversion of tech to China despite existing restrictions.
The move -- part of a series of actions before President Joe Biden leaves office -- comes days after US officials announced fresh curbs on AI chip exports, seeking to make it harder for Beijing to access the advanced technology.
"These rules will further target and strengthen our controls to help ensure that the PRC and others who seek to circumvent our laws and undermine US national security fail in their efforts," Commerce Secretary Gina Raimondo said, referring to the People's Republic of China.
Washington has expanded its efforts in recent years to curb exports of state-of-the-art chips to China, concerned that these can be used to advance Beijing's military systems and other tech capabilities.
But there have been worries about circumvention.
The latest controls aim to hold back China from getting high-end computing semiconductors needed to develop advanced artificial intelligence capabilities, the US commerce department said.
"By enhancing due diligence requirements, we are holding foundries accountable for verifying that their chips are not being diverted to restricted entities," said Alan Estevez, Commerce Department under-secretary for industry and security.
The outgoing Biden administration's moves have drawn ire, with China's commerce ministry saying Beijing was "strongly dissatisfied and firmly opposed" to them.
The ministry vowed in a statement Wednesday that China would take measures to safeguard its interests.
With the new rules, foundries and packaging companies that want to export certain advanced chips face broader license requirements unless they meet several conditions.
The rules also aim to enhance reporting for transactions involving newer customers "who may pose a heightened risk of diversion," said the US commerce department.
- Blacklist -
The department on Wednesday placed 25 China-based entities, alongside two Singapore ones, on a trade blacklist as well.
Companies added to the so-called Entity List are restricted from obtaining US items and technologies without a license.
Among those impacted was Sophgo Technologies, which was said to have been involved in Huawei accessing chips from Taiwanese chip giant TSMC.
Some of the Entity List additions were made because the businesses helped advance China's military modernization through the development of AI research, a government posting said.
Others were accused of aiding the development of advanced computing integrated circuits that further China's progress in weapons systems, or posing a risk of diversion to Huawei -- which has itself been blacklisted.
Such activities, according to the postings, were contrary to US national security and foreign policy interests.
Apart from chip export controls, Washington finalized a rule this week effectively barring Chinese technology from cars in the American market.
The announcement took aim at software and hardware from the world's second-largest economy over national security risks.
US officials are also mulling new restrictions to address risks posed by drones containing tech from adversaries like China and Russia.
Beijing said Wednesday that the Biden administration's measures have "seriously infringed upon" Chinese companies' rights and interests.
But the rollout of many plans will fall to US President-elect Donald Trump, who returns to the White House next week.
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