China’s independence technology raises the concerns of Western companies

European companies are monitoring with increasing concern to Beijing to enhance their technological independence through the “Made in China 2025” initiative, and fears its marginalization and the loss of its market share in the second largest economy in the world.

“The continuation of the use of a policy similar to the” Made in China 2025 “initiative may lead to more tension at a time when globalization faces challenges,” said Yenos Escond, President of the European Union’s Chamber of Commerce in China.

A report issued by the European Chamber of Commerce, entitled “Made in China 2025: The cost of technological leadership”, stated that China seeking global leadership in some sectors view foreign companies as a bridge that leads to more advanced technology, adding that the rapid development made by China has raised fears of the possibility of dispensing foreign companies once it loses this supplementary feature.

The report said: “Once Chinese companies have similar technology, the restrictions of access to the market, or the inability to compete, can lead to a great loss in the market share of foreign companies,” the report said.

According to the newspaper “South China Morning Post”, the report urged Beijing to avoid increasing commercial imbalances and tensions with the European Union through “made in China” requirements.

Although China has achieved a high degree of self -reliance in only a few sectors, the European Chamber indicated that Beijing is determined to get rid of dependence on major foreign technology, and is likely to continue to marginalize foreign companies in the strategic sectors.

The European Chamber warned that “this will lead to a less global world, with the isolation of China. It is likely to continue to raise external measures that harm China’s economy and its global position.”

“With regard to technology, China has an unparalleled market standing,” Escond said, noting that this situation is achieved with severe consequences, including surplus production capacity and the escalation of tensions with its commercial partners.

The report revealed that the European Union expressed its willingness to respond to commercial defensive measures, unless China changed its course. At the same time, he pointed out that the unprecedented destruction of global commercial standards provides an opportunity for China. “China has an opportunity to consolidate its position as a responsible partner, if it can acknowledge the fears of its commercial partners and realize the existence of something in the current model we need to change it,” Escond said.

The European Chamber recommended that China focus on implementing the current plans for openness and attracting foreign investment in accordance with clear standards and accountability practices, in line with what was stated in the annual European business paper in China, issued in September, which showed that European companies’ confidence in China was at the lowest levels ever.

The United States, which is a strategic competitor, is also seen in a “Sana’a 2025” plan as a challenge to its leadership in advanced technology. “We are risking the loss of the upcoming industrial revolution (leadership), which is revealed with the integration of artificial intelligence with the physical industry to cause a transformation in how to make things,” Lisa Topin, General Manager of Grenut Global Consultant in the field of geopolitical risks, said in a hearing in Congress in early February.

Although Beijing has become publicly reluctant to refer to the plan facing global opposition, an investigation conducted by the Washington Post last April found that 86% of the goals set in the plan were achieved.

Despite the commercial conflicts, Beijing and Brussels finally strengthened their contacts and the Chinese Minister of Trade, Wang Winnto, and European Trade and Economic Security Commissioner, Marus Sevkovic, last week, held a video conversation during which they agreed to start negotiations on electric cars pricing and exploring investment opportunities in the auto sector.