The EU – US Tech Relationship In a Changing Global Economic Order

Introduction

In the recent past, the EU and the U.S. have released analyses of their strategic dependencies and proposals of actions to mitigate them. Both identified semiconductors, pharmaceuticals, batteries and ‘rare earths’ as strategic sectors with vulnerable supply chains due to their highly concentrated reliance on a small number of suppliers. The need for such action plans is motivated by a changing world economic order and were accelerated through the COVID pandemic, as well as Russia’s aggression in Ukraine. In addition, China’s ambivalent position on the war in Ukraine has brought new light to its mercantilism and the dangers implicit in the rise of techno-nationalism and competitive autarchy, as the conflict has accentuated the autocracy-democracy divide. At its highest level the war has also brought home to Europe, the United States, and other democracies the issue of strategic dependencies.

The new impetus to transatlantic unity with the TTC as its vehicle should help the US and EU address these issues and move towards a more stable and collaborative relationship. Will this happen, and how might trans-Atlantic relations evolve? This report in collaboration with EIT Digital will address these questions by developing future scenarios and assessing their implications.

 

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