The war in Iran is reinforcing the stakes of the competition for global leadership in technology. This competition entered a new phase in March as the Chinese Communist Party published its new five-year plan, and it should be a wake-up call to Europe first and foremost — and to the US as well. Beijing’s ambitions aim to turn China from the world’s tech factory into the world’s tech innovator while defining global rules for tech and standards on tech to create far-reaching dependencies that it can use for coercion.
The United States remains the global leader in technology — but the lead is shrinking fast. China now leads in 57 of 64 critical technology categories, from critical minerals to open-source AI to humanoid robotics.
The US cannot win this race alone. It needs allies in Europe most of all. And Europe needs the US far more as the continent lags behind in tech innovation, but as I write in the Washington Post, Europe has a lot to play for and much to offer in terms of AI infrastructure, talent, and manufacturing.
Europe is distancing itself from America. That leads in one direction.
Beijing cheers at the prospect of the Europe “derisking.”
The ingredients for a formidable transatlantic tech partnership already exist. European firms are critical to producing advanced AI chips and powering the data centers that use them. American companies are deeply invested in Europe’s information sector. Billions in trade of goods and services cross the Atlantic every day. This is not a relationship to dismantle. It is one to deepen.
Yet instead of closing ranks, the two sides are drifting apart. The leaders of Germany, Britain, France, and Canada have all made pilgrimages to Beijing in recent months, seeking trade deals and deeper economic ties. Some European leaders frame “de-risking” from Washington as strategic autonomy. It is nothing of the sort.
Without viable continental alternatives, reducing dependence on American tech, defense, and services leads in only one direction — toward Beijing. Replacing what America provides would cost trillions and take decades. As I wrote for CEPA, even if Europe could afford that bill, the duplication would be counterproductive.
Meeting China’s Tech Challenge
China has launched an aggressive blueprint to dominate global tech innovation. The US and allies must respond — together.
What is missing is a strategic framework. Washington’s Pax Silica initiative and the FORGE critical minerals partnership point in the right direction — building resilient supply chains through allied cooperation rather than go-it-alone industrial policy. Europe, for its part, must accelerate regulatory reform and stop burdening the very start-ups and scale-ups it most needs.
Tech 2030: A Roadmap for Europe-US Tech Cooperation
A US-Europe tech partnership is key to independence from China.
Neither side can win alone. Together, the US and Europe represent the world’s largest integrated economy, its deepest capital markets, and its most advanced research ecosystems. The alternative — a splintered West chasing behind a China that is moving fast, investing massively, and offering its tech ecosystem to any country willing to adopt it — is not a future either side should accept.
You can find more interesting reads on this topic below.
Dr. Alina Polyakova serves as the President and CEO of the Center for European Policy Analysis (CEPA) and is the Donald Marron Senior Fellow at the Henry A. Kissinger Center for Global Affairs at the Johns Hopkins University’s School of Advanced International Studies (SAIS).
