EU strips AI, chips and quantum from industrial plan aimed at countering China

The European Union’s ambitious industrial policy to challenge China has been gutted, removing AI, semiconductors and quantum computing from a list of strategic technologies that must be “made in Europe” to tap billions in government funds.

Biotechnology and robotics are other cutting-edge sectors to be cut from the Industrial Accelerator Act (IAA) ahead of the proposal’s formal unveiling by the European Commission on Wednesday, a leaked draft showed.

Plans to exclude non-EU-based producers from government contracts and funds have been kicked down the road for six months, but the draft suggested those countries that align with the bloc’s economic security policies could eventually be included.

The IAA is designed to promote local industries at the expense of competing companies from outside the EU market.

While China is directly referred to only twice in 93 pages of legislation and annexes, the act is seen as a crucial prong of Brussels’ efforts to de-risk from the Asian giant.

It aims to reduce EU dependence on China by mandating local content rules for strategic sectors such as electric vehicles and solar for public procurement and state support schemes, meaning a high proportion of qualifying products should be made in Europe.

South China Morning Post