On Tuesday, the European Commission will propose screening outbound investments and export controls to prevent China and other adversaries from using EU technology for military purposes.
The EU executive will offer its Economic Security Strategy as a “communication” to EU lawmakers and countries whose leaders will address China relations in Brussels next week.
The communication will suggest ways for the 27-nation EU to “de-risk” from China and prevent sensitive technology from being exported or invested abroad.
Because EU states want to keep export licenses and security interests, the Commission must step carefully.
A Dutch strategy prevents Chinese corporations from buying ASML (ASML.AS)’s most powerful lithography machines needed to fabricate semiconductors. The Dutch unilaterally sought EU-wide limits. EU officials say there is no clear way.
The EU controls exports of “dual-use” commodities with military applications but not new technologies.
“EU member states are not ready to hand over export controls as a whole but we will probably see something more along the lines of greater cooperation,” an EU diplomat said.
EU diplomats believe the group must carefully identify dangers and prove present safeguards cannot manage them.
The Commission could propose screening international students studying technical disciplines, something the Dutch are drafting legislation for.