Sunday, July 12, 2026

Europe Still Holds Critical Technological Leverage Over China, Report Finds

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While Europe remains heavily dependent on China for critical raw materials and manufacturing, Beijing still relies on European expertise in several strategic technologies, according to an analysis by EuroNews.

Despite China’s push for technological self-sufficiency under its 15th Five-Year Plan, European companies continue to play a key role in sectors such as semiconductors, aerospace, pharmaceuticals, automotive chips, robotics and quantum computing.

Key Technologies Still Depend on Europe

According to EuroNews, one of China’s most significant dependencies is in semiconductor manufacturing.

ASML remains the global leader in extreme ultraviolet (EUV) lithography systems, which are essential for producing advanced chips used in artificial intelligence and electric vehicles. The company also controls nearly 90% of the global market for deep ultraviolet (DUV) lithography equipment.

European suppliers also remain important in China’s aerospace industry. Companies including Safran, Liebherr Aerospace and Avio Aero provide critical components for the COMAC C919 passenger aircraft.

European pharmaceutical companies also continue to lead in vaccine production and pharmaceutical patents, while manufacturers such as Infineon Technologies, NXP Semiconductors and STMicroelectronics supply key automotive chips used by Chinese electric vehicle producers.

Europe’s Leverage Has Limits

Although these technological advantages provide Europe with strategic influence, experts interviewed by EuroNews argue that Beijing still holds stronger leverage through its dominance in rare earth minerals, which are essential for Europe’s defence, renewable energy and advanced manufacturing industries.

According to Tobias Gehrke of the European Council on Foreign Relations, Europe lacks an equivalent strategic “choke point” capable of matching China’s control over critical minerals.

Race for Technological Independence

EuroNews reports that China aims to reduce many of these dependencies over the coming years through increased domestic investment in advanced manufacturing and research.

Experts cited in the report believe sectors such as semiconductor equipment, robotics and quantum computing remain areas where European companies retain a technological advantage. However, China’s rapid investment in research, industrial capacity and local supply chains could gradually narrow the gap.

The report concludes that Europe’s technological leadership remains an important strategic asset, but one that could diminish unless the bloc coordinates investment, innovation and export policies more effectively.

Photo: rost9/ magnific.com

Teodora Helerman
Teodora Helerman
Online editor, content writer, blogger, and social media specialist, with experience in writing and publishing news, creating original content, and adapting materials for various digital platforms.
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