Datenna and the Clingendael Institute release joint research report on Sino-European strategic dependencies
This report is a joint effort by Datenna and the Clingendael Institute, and aims to highlight the strategic significance of high-tech joint ventures for EU–China relations. Joint ventures can serve as conduits for technology transfers from Europe to China, and vice versa.
Sino-EU JVs and the risk of technology transfer
High-tech joint ventures are a key element in EU-China economic relations. Besides the opportunities they bring, they can also serve as a conduit for technology transfers from Europe to China, enabling China’s industrial agenda. This research project seeks to understand the degree to which Sino-European joint ventures play a role in facilitating technology transfers in strategic industrial sectors.
High tech plays a central role in the growing geopolitical competition among the world’s major powers. The Chinese government, especially through its ‘Made in China 2025’ strategy, has made its industrial and geopolitical objectives clear. This has fueled concerns that European firms are inadvertently helping China to meet its strategic ambitions at the expense of European ones. Of course, not all joint ventures are vehicles for technology transfer, or are of strategic economic concern, but some are. And some of those involve technology transfers of technologies that are relevant to the security and geopolitical interests of the EU.
A sample of joint ventures
We sampled a group of twenty Sino-European joint ventures drawn from Datenna’s database and extensive research into 13,000 EU-China joint ventures in China. This research project mapped all European joint ventures and wholly foreign owned entities in China in an informative EU-China Joint Venture Radar.
We found that:
- Sino-European joint ventures are active in each of the ten ‘Made in China 2025’ technological sectors;
- In 80 percent of the joint ventures in our sample, the European parent company has a minority stake;
- In 25 percent of the cases, the risk of involvement of the Chinese state in the joint venture is considered to be ‘high’;
- In 25 percent of the cases, technology transfer is considered to be a ‘likely’ element of the joint venture’s activities.
The European Union and its member-states should better understand the nature of Sino-European joint ventures and the risks involved with technology transfers to China. It should develop policy to avoid joint ventures from enabling China’s strategic agenda at Europe’s industrial and geopolitical expense.
The Clingendael-Datenna Initiative on Sino-European Strategic Dependencies aims to support this effort with independent policy analysis and research.