In technology, China has evolved from an imitator to an innovator, overtaking Europe in many fields seen as crucial for future economic growth and the transition to net zero. Through Xi Jinping’s policy of “military-civil fusion,” technological progress in the civilian sector is deliberately channelled to strengthen China’s military capabilities. This poses a direct concern for Europe, given China’s material support for Russia’s aggression against Ukraine and its growing threat to democratic partners in the Indo-Pacific. At the same time, China leverages its trade and investment ties to promote its model of techno-authoritarianism—an approach that has found traction not only across parts of the Global South, but also within segments of Europe.
Europe’s strategic response to this challenge is further complicated by an erratic U.S. administration that oscillates between a hard line on China and self-defeating leniency on technology restrictions, while signalling possible retrenchment from its traditional security commitments in Europe and the Indo-Pacific. European strategies towards China and the wider Indo-Pacific remain vague, often unclear about their goals and even more so about the means to achieve them. European leaders seek to preserve stable relations with China while mitigating risks, yet they shy away from defining what it truly means for China to be a “systemic rival” or how to promote European models of governance in competition with Beijing’s.
To respond effectively, Europe must start with a clearer and more realistic understanding of China’s actions and intentions. European governments should abandon the illusion that Xi Jinping will one day level the playing field or open China’s markets to genuine competition. Both the EU and the UK would benefit from regular, structured dialogue and practical policy coordination on China-related issues. Such cooperation could encompass a broad agenda—ranging from economic security and the protection of sensitive technologies to the regulation of Chinese cultural and information activities in Europe, as well as Europe’s broader geopolitical strategy toward China and the Indo-Pacific region.
