The South China Morning Post reports that the EU would restrict re-exports of American AI chips to China as part of the trade deal with the U.S. Newly published details of the recent EU-U.S. trade deal show that the EU is more closely following Washington on technology, security and commerce, potentially driving a new wedge into Europe’s relationship with China. A joint statement confirmed that the European Union will accept tariffs of 15% on 70% of its exports to the U.S., as agreed in July. It will also consider exempting American goods from some of its sweeping climate laws, even as it moves to lower tariffs on American products, including industrial goods. While China is not mentioned once in the 19-point joint statement – described as a “framework” towards a more comprehensive trade agreement – veiled references appeared throughout.
The statement said the European Union would buy USD40 billion of AI chips from the U.S., and that it would “adopt” U.S. security standards to “avoid technology leakage to destinations of concern”, which includes China. While the U.S. has rescinded a Biden-era order limiting which EU member states could buy U.S. AI chips, the statement shows that it still expects to control where they ultimately go. At a press conference in Brussels, EU Trade Commissioner Maros Sefcovic said the bloc was committed to ensure that semiconductors do not “fall into the wrong hands”. “They want to make sure that once these AI chips are in Europe, they will stay in Europe, that they will be used for the benefit of the European economy, that they will not be transshipped somewhere else,” said Sefcovic, describing it as “standard process when it comes to sensitive technologies”. “What is important is to have access to these top technologies, and we are, of course, ready to work together with our U.S. partners, to make sure that we respect all the security requirements of both parties, EU and U.S., just to make sure that sensitive technology will not end in the wrong hands.”
The statement shows that the U.S. and the EU plan to work together to curtail China’s access to cutting edge technologies. The agreement will also see them work together to address “non-market practices, unfair competition, and lack of reciprocity in public procurement with respect to third countries”, terms that are often used to describe China’s policies. The European Commission is expected to publish an “economic security doctrine” by the end of the year.
