The study highlights China’s exponential growth in research and development (R&D) expenditure, raising concerns about the EU’s technological exposure and potential risks.
In a recent paper commissioned by the European Commission, it has been revealed that China has emerged as a clean energy powerhouse, outpacing the EU in clean technology research. The study highlights China’s exponential growth in research and development (R&D) expenditure, raising concerns about the EU’s technological exposure and potential risks.
The clean technology research indicates that China’s R&D intensity has more than doubled since 2000, allowing it to catch up with the EU, while the United States maintains a consistent lead. As China ascends as a global leader in science and innovation, particularly in critical technologies outlined in the 2023 Commission Recommendation, the EU faces challenges related to supply chain resilience, critical infrastructure security, and economic dependencies.
The paper underscores China’s strategic focus on winning the global race for leadership in key technologies, considering them crucial for its development and security. This, in turn, heightens the EU’s exposure and raises concerns about economic coercion and the weaponization of dependencies.
Notably, the study emphasizes China’s dominant position in manufacturing, especially in the realm of clean technology. The EU, grappling with the consequences of Chinese competition, is taking measures to protect its clean energy manufacturing, particularly in electric vehicles (EV), solar, and wind industries.
The European bloc acknowledges the challenge posed by China’s low prices and shorter supply chains in steel production and raw materials, severely impacting EU companies’ ability to compete on a level playing field. In response, the EU has unveiled measures to address its dependence on imported technologies, aiming to safeguard the market shares of European manufacturers.
As the EU confronts the increasing technological prowess of China, the findings of the paper underscore the urgency for strategic policies to ensure the resilience of its industries and protect its economic security in the face of China’s ascent in the global clean energy landscape.