China warns against ‘protectionism’ as EU homegrown tech drive squeezes foreign suppliers

by · EUobserver

Open-source technologies could find a path as a third way between the US-model relying heavily on massive private venture capital and major tech corporations and an Asian-way dominated by Chinese state control and interventionism

EU and the World

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By Petra Pavlovičová,
Brussels
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The EU Commission presented its Technological Sovereignty Package this week, in a bid to reduce its dependence on external suppliers.

However, despite the bloc’s ambitious push, the US-dominated Big Tech industry is expected to maintain its leading position — while the EU also faces the risk of potential economic backlash from China.

As Europe remains heavily dependent on foreign-owned digital platforms and infrastructure, with over 80 percent of essential digital services relying on non-European providers, the commission wants to remedy the strategic vulnerabilities that affect security, competitiveness, data protection and resilience.

At the heart of the package is not only an understanding of the need for free communication that can be done confidentially and without fear of foreign interference, but also a way of pushing for the continent’s so-called strategic autonomy and economic security.

“This is about protecting our citizens, defending our interests and making our own choices,” said commission president, Ursula von der Leyen.

The package aims to strengthen European sovereignty since US companies hold a ‘kill switch’ on web services. This is part of wider efforts to transform Europe into a global leader in artificial intelligence (AI), semiconductors, cloud computing, and open source innovation. 

It includes two key legislative sets: the Cloud and AI Development Act (CADA) and the Chips Act 2, alongside a set of non-binding recommendations for member states. 

“This isn’t just another regulation; it is a communication. [The commission is] specifying a lot more about what they can do and how that works within the existing regulatory framework,” Nicholas Gates, policy advisor at OpenForum Europe (OFE), told EUobserver.

EU’s push for open-source

The Technological Sovereignty Package sets out key priorities, ensuring that principles such as open source, open standards, open governance, and openness more broadly are embedded in future legislative proposals. 

The commission views open-source as a strategic asset capable of strengthening technological independence while promoting transparency, innovation, and interoperability. 

“This is the first time an open source and open technologies are put into the forefront,”  Lazslo Igneczi, executive director and chair of the management board at OFE, told EUobserver.

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Open-source technologies could find a path as a third way between the US-model relying heavily on massive private venture capital and major tech corporations and an Asian-way dominated by Chinese state control and interventionism

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Author Bio

Petra Pavlovičová is a reporter at EUobserver. She studied Political Sciences and Journalism in Brussels. She worked and gathered experience in Belgian daily press Le Soir, Slovak redaction of Dennik SME and in the Investigative Center of Jan Kuciak in Bratislava.

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