Europe Demands Technology Transfer from China: Power Relations Reversed

Publication Date: 21.11.2025

Author: Florentin Collomp
Source: Le Figaro
Publication Date: November 21, 2025
Summary Reading Time: 3 minutes

Executive Summary

The EU Commission plans to reverse China's historic strategy and will henceforth require technology transfers from Chinese investors as a condition for direct investment. This shift reflects China's dramatic rise in green technologies and marks a fundamental change in global power balance. However, with the "industrial acceleration" announced for December, Europe risks placing protectionist measures above free market principles and weakening innovation in the long term.

Critical Key Questions

  • When does legitimate technology security become unfair protectionism? Does Europe risk undermining the free market principles it defends against China through forced transfers?

  • Can Europe truly regain innovation strength by mimicking Chinese methods? Or does this only reinforce a spiral of state market distortion?

  • What freedom costs arise for European companies when governments increasingly make investment decisions based on geopolitical rather than economic criteria?

Scenario Analysis: Future Perspectives

Short-term (1 year):
Chinese investors will examine alternative locations; first trade disputes over "unfair practices" emerge between EU and China.

Medium-term (5 years):
Global fragmentation into technology blocs intensifies; Europe could secure technology access short-term but create long-term dependencies.

Long-term (10-20 years):
Bifurcated world economy with parallel technology standards; innovation cycles slow due to reduced international cooperation.

Main Summary

Core Theme & Context

The EU Commission is preparing a historic reversal: Instead of protecting Western companies from Chinese forced technology transfers, Europe now wants to demand such transfers from Chinese investors itself. This reflects China's dominant position in green technologies and the new reality of reversed power relations.

Key Facts & Figures

  • December 3: EU Commission presents new doctrine on economic security
  • December 10: Draft law on "industrial acceleration" will be presented
  • Battery sector designated as pilot area for new transfer conditions
  • Additional conditions: Local employment and component thresholds planned
  • Role reversal: China is no longer technology recipient but provider

Stakeholders & Those Affected

Directly affected: Chinese investors (particularly battery/automotive sector), European industrial companies, consumers of green technologies
Institutional: EU Commission under Stéphane Séjourné, national investment authorities, WTO dispute resolution

Opportunities & Risks

Opportunities: Accelerated knowledge transfer in critical future technologies, strengthened European industrial base, reduced strategic dependencies
Risks: Chinese retaliation, higher investment costs, slowed energy transition through more expensive technologies, undermining own free market credibility

Action Relevance

Leaders should immediately review China investment strategies and evaluate alternative technology partnerships. Critical: The EU risks weakening its economic credibility and innovation capacity long-term by adopting Chinese methods.

Source Directory

Primary Source:
La Chine utilise son avantage à des fins géopolitiques

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