The Unexpected Digital China Challenge for the European Union

This chapter examines China’s unexpected rise as a digital innovation powerhouse and its implications for the European Union. The views on China have evolved due to technological competition and China’s authoritarian rule towards a systemic rivalry. This chapter explores China’s unique digital ecosystem, driven by controlled markets, strategic state-led initiatives, and robust innovation. EU dependencies on Chinese technology present economic, security, and political risks, prompting a “de-risking” strategy focused on reducing these dependencies while preserving strategic autonomy. Key EU responses include investment screening, export controls, and the European Economic Security Strategy, This dual strategy seeks to maintain technological ties while mitigating security vulnerabilities and place the EU in a good position to address the challenges of China’s influence in global digital governance.