Although increasingly limited, China’s dependencies on the EU in strategic technologies have not disappeared.
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In today’s increasingly tense geopolitical environment, closing this gap has become an urgent priority for Beijing. The country’s 15th Five-Year Plan, unveiled last March, places technological self-reliance at the heart of its industrial strategy through 2030.
In semiconductors, aerospace technologies, pharmaceuticals, automotive chips, robotics and quantum computing, European companies still supply products that remain essential to China.
As trade tensions with Beijing intensify, could these dependencies give Europe leverage? Most experts are sceptical. China’s monopoly over rare earths — essential for Europe’s green technologies and defence industry — is a far more powerful weapon that could be used in retaliation against the EU.
“China really has a choke point when it comes to minerals, but we don’t have an equivalent choke point, which is very powerful,” Tobias Gehrke, an expert at the European Council on Foreign Relations, told Euronews.
In some sectors, China may achieve self-reliance within just a few years, according to expert Sam Goodman in a report published in May for the Brussels-based Martens Centre.
Euronews examined those sectors. Here are the technologies in which China still remains dependent on the EU.
Semiconductors
In the semiconductor supply chain, the EU has a jewel : ASML, the Dutch company with the highest market valuation ever recorded by a European company, boasting a market capitalization of more than €630 billion in 2026.
The company holds a near-monopoly on extreme ultraviolet (EUV) lithography machines, which are essential for manufacturing advanced semiconductor chips used in artificial intelligence and electric vehicles.
China’s dependence on ASML has already been exploited by the United States and the Netherlands, which have restricted sales of the strategic technology to Beijing. But China can still buy less advanced deep ultraviolet lithography machines, a segment in which ASML holds almost 90% of the global market, according to Gehrke. In 2024, for some of those products, up to 70% of shipments went to China.
However, China is moving quickly to catch up. It now requires that 50% of equipment used in new chip production capacity be sourced domestically, Gehrke wrote in a report published in March.
“The Chinese have set a target that they want to start producing their own chips, not using ASML machines by 2028,” Goodman told Euronews. “But they’re still going to be dependent on ASML to learn.”
Maintenance and repair of installed equipment in China also account for a significant share of EU suppliers’ revenues.
In the event of EU restrictions on semiconductor exports, Gehrke forecasts “potentially large” economic damage to China, particularly if servicing were restricted, “but great spill-over risks,” as a significant share of ASML’s revenue is exposed.
Aerospace
The Comac C919 narrow-body airliner is China’s answer to the widely used passenger jets produced by U.S. manufacturer Boeing and European rival Airbus. But its supply chain remains heavily dependent on European companies.
Goodman lists several of them, including France’s Safran, which produces its engine, Germany’s Liebherr Aerospace, which supplies its cabin pressure system, and Italy’s Avio Aero, which manufactures the engine casing.
“Without the participation of these companies, China wouldn’t have a civil aviation programme,” Goodman said. “Civil aviation is very complicated to begin with, with safety standards very high; it takes a long time to get the know-how needed to do it.”
However, despite China’s dependence on European suppliers, any attempt to weaponise the supply chain could also come at a cost for Europe.
“It will hurt the bottom line of European aerospace suppliers which do very well out of China,” Goodman told Euronews. But he argues that the alternative is to “accept basically that China learn all our technology, create rivals and then destroy our market share”.
Competition between Chinese and European manufacturers is already intense.
A quiet battle is emerging over certification, with China seeking approval from the European Union Aviation Safety Agency (EASA) to allow the C919 to operate in Europe.
“This is a leverage for Europe which could politicise the process and refuse China’s aircraft certification”, Gehrke said. But Beijing is already playing the same game, slowing down the certification of new Airbus aircraft in China.
As of now, Airbus has more than 2,200 aircraft in service in mainland China, holding roughly a 55% market share.
Pharma and biotechnology
Europe still leads China in pharmaceutical patents. “In 2024, companies in Italy, Germany and France alone had double the number of pharmaceutical patents granted compared to China,” Goodman said.
The expert added that EU companies continue to dominate the vaccine market, with Germany’s Merck, France’s Sanofi and Britain’s GSK “accounting for 51 percent of global vaccine market share in 2024″.
However, according to figures from LEEM, the French pharmaceutical industry association, China’s R&D investment grew by 16.2% annually between 2020 and 2024—twice the pace of Europe—allowing it to account for more than one-third of new molecules produced by global pharmaceutical research in 2024.
Some EU companies have also established joint ventures and R&D partnerships to benefit from China’s research spending and lower manufacturing costs, including Germany’s Bayer and France’s Sanofi.
Which side benefits the most from joint ventures? “Always China,” Goodman said. “I’ve found no example of a joint venture between a Chinese company and a non-Chinese company where the non-Chinese company has benefited from technology transfer.”
When it comes to medical equipment, EU companies such as Siemens Healthineers and Philips remain global leaders in magnetic resonance imaging (MRI), although both have significantly expanded their manufacturing footprint in China.
“Local competitors are catching up rapidly,” Gehrke said, but he added that “there is still a gap in key upstream MRI components – such as superconducting magnets and image-processing software.”
Automotive chips
Chinese flagship automakers such as BYD and Chery also depend on European technologies, including chips from Germany’s Infineon, the Netherlands’ NXP and Franco-Italian STMicroelectronics.
China’s strategy is to become self-reliant in the sector, but Goodman said that the “domestic demand for EVs and the chips within them has meant that automotive companies in the PRC [People’s Republic of China] face an import substitution challenge”.
But the EU’s leadership in these niche technologies remains precarious.
“Europe is strong in mature automotive chips because they do produce power electronics sensors, but there are still very high vulnerabilities in certain parts of the supply chains, mainly in the back-end manufacturing part,” Giulia Albini from CLEPA, the European Association of Automotive Suppliers, told Euronews.
The EU depends on other regions—including China—for packaging, assembly and testing, as last year’s dispute over Dutch-based Nexperia, owned by China’s Wingtech, revealed. Following the Netherlands’ takeover of the company, China restricted chip exports to the EU.
Goodman added that the significant share of Chinese customers, as well as EU carmakers operating in China, makes it “unlikely that this leverage could be utilised”.
Robotics and quantum
Robots are China’s latest showcase of technological progress. Few will forget Chinese humanoid robots taking centre stage during televised Lunar New Year celebrations.
But Goodman said that a sizeable portion of the downstream supply chain, including the components that make the robots move, is produced by European companies, including Sweden’s Ewellix and Germany’s Rexroth.
“The leading Chinese humanoid robotic companies do not publish their supply chain for this very reason,” Goodman said.
However, he added that, in any case, the narrative of a self-sufficient Chinese humanoid robot sector “ready to take the world by storm” should be examined carefully.
When it comes to quantum computing, designed to carry out complex calculations faster than classical computers, Goodman said that China wants to keep working with Europeans to meet its industrial and commercialisation targets.
However, EU member states remain divided over the merits of partnering with China in what is regarded as the next major technological frontier after the AI boom.
“The French, the Dutch, the Germans have very rigorous export controls on materials that could be used for quantum computing by China, while the Spanish and the Italian have active projects with Chinese companies developing quantum in Europe,” Goodman said.
“Unless we have a unified approach, inevitably China is going to gain the system.”
