China has spent years trying to reduce its reliance on foreign technology, but Europe continues to play a significant role in several of the sectors Beijing sees as vital to its economic and industrial future.
A Euronews analysis highlights a less discussed side of the EU-China relationship. While Europe’s dependence on Chinese raw materials, manufacturing capacity and green technology supply chains is widely recognised, China still relies on European companies in several high-value industries.
These dependencies are narrower than they once were and Beijing is working quickly to close the gap. China’s latest five-year planning cycle has placed technological independence at the centre of its industrial strategy through 2030. Even so, European expertise remains difficult to replace in areas such as semiconductors, civil aviation, pharmaceuticals, automotive chips, robotics and quantum technology.
The question for Europe is whether this position gives it meaningful leverage. Analysts are cautious. China’s dominance in rare earths and other critical minerals gives Beijing a much stronger pressure point, particularly because those materials are essential for Europe’s defence industry, electric vehicles and clean-energy technologies.
Semiconductors remain Europe’s strongest card
The clearest example of Chinese dependence on Europe is in chipmaking equipment. The Netherlands-based ASML remains one of the most important companies in the global semiconductor industry, largely because of its dominance in advanced lithography machines used to produce high-end chips.
China has already been blocked from buying ASML’s most advanced extreme ultraviolet lithography systems, following pressure from the United States and export restrictions imposed by the Dutch authorities. However, Chinese manufacturers still depend on ASML for less advanced deep ultraviolet machines, which remain essential for many types of chip production.
China is attempting to reduce that exposure. New chip production capacity is increasingly expected to use domestically made equipment, and Beijing has set ambitious targets for developing its own semiconductor tools. Analysts believe China could make progress over the next few years, but also note that existing ASML machines in China still require maintenance, servicing and technical support.
That creates a possible pressure point for Europe, although one that comes with risk. Any wider restrictions on semiconductor equipment or servicing could damage Chinese production, but they would also hit European suppliers whose revenues are partly tied to the Chinese market.
Civil aviation still relies on European suppliers
China’s ambitions in commercial aircraft are another area where European input remains important. The Comac C919, Beijing’s answer to aircraft made by Airbus and Boeing, is presented as a symbol of Chinese industrial progress. Yet key parts of its supply chain still depend on foreign companies, including European suppliers.
European firms are involved in areas such as engines, cabin pressure systems and engine components. Analysts say this reflects the complexity of civil aviation, where safety standards, certification procedures and engineering know-how take years to master.
Europe’s role gives it influence, but not without a cost. Restricting access to these components would affect China’s aircraft programme, but it would also hurt European aerospace companies that benefit from Chinese demand.
A separate battle is taking place over certification. China wants the C919 to gain approval from the European Union Aviation Safety Agency, which would allow the aircraft to operate in Europe. Some analysts see this as a potential source of European leverage. At the same time, Beijing has its own tools, including the ability to slow approvals for new Airbus aircraft in China.
Airbus remains deeply exposed to the Chinese market, with more than 2,200 aircraft already in service in mainland China and a market share of around 55%.
Europe leads in parts of pharma and medical technology
China has also made major gains in pharmaceuticals and biotechnology, backed by rising research spending and lower manufacturing costs. However, Europe still holds an advantage in several areas, including pharmaceutical patents, vaccines and advanced medical equipment.
According to experts cited by Euronews, companies in Italy, Germany and France secured far more pharmaceutical patents than China in 2024. European and UK-based firms also continue to hold a major share of the global vaccine market.
China is catching up rapidly. Its investment in research and development has been growing much faster than Europe’s, and Chinese laboratories now account for a significant share of new molecules emerging from global pharmaceutical research.
European companies including Bayer and Sanofi have built partnerships and research operations in China to benefit from that growth. The long-term concern for Europe is whether such cooperation accelerates Chinese learning and helps create future competitors.
In medical equipment, companies such as Siemens Healthineers and Philips remain global leaders in MRI technology. However, both have expanded production in China, while domestic rivals are narrowing the gap. The remaining European advantage lies mainly in specialised components and software, including superconducting magnets and image-processing systems.
Automotive chips show both strength and vulnerability
China’s electric vehicle champions, including BYD and Chery, still depend on European semiconductor companies for important automotive chips. German, Dutch and Franco-Italian suppliers remain strong in mature chips, power electronics and sensors used across the car industry.
This gives Europe a role in China’s fast-growing EV sector. But the advantage is fragile. Parts of the semiconductor supply chain, including packaging, assembly and testing, remain dependent on other regions, including China itself.
The dispute involving the Dutch-based chipmaker Nexperia, owned by China’s Wingtech, showed how quickly such interdependence can become a source of tension. After the Netherlands intervened in the company, China imposed restrictions on chip exports to Europe.
Analysts argue that Europe’s leverage in automotive chips is unlikely to be used aggressively, partly because European chipmakers have major Chinese customers and partly because European carmakers operating in China also rely on stable supply chains.
Robotics and quantum technology are emerging battlegrounds
Robotics has become one of China’s most visible technology ambitions, particularly after the country showcased humanoid robots in major public events. Yet experts say some of the components that allow these systems to move and operate still come from European suppliers, including companies in Sweden and Germany.
That dependence is difficult to measure precisely, as leading Chinese robotics firms rarely publish detailed supply chain information. Analysts also caution against accepting at face value the idea that China already has a fully self-sufficient humanoid robotics sector ready to dominate global markets.
Quantum computing is another sensitive area. China wants to continue working with European researchers and companies as it pushes towards industrial applications. But Europe is divided over how far such cooperation should go.
Some countries, including France, Germany and the Netherlands, have introduced stricter controls on materials and technologies that could support China’s quantum ambitions. Others, including Spain and Italy, have active cooperation projects involving Chinese companies.
That lack of a common European approach could weaken the EU’s position. Analysts warn that unless member states coordinate their policies, China will be able to work around national restrictions and continue accessing the technology it needs.
A limited but important source of leverage
China’s remaining dependence on Europe does not reverse the overall balance of pressure in EU-China relations. Beijing still holds powerful advantages in critical minerals, manufacturing scale and several green technology sectors.
But the picture is more complex than a one-way dependency. In strategically important industries, Europe still holds knowledge, equipment and components that China cannot fully replace.
For Brussels, the challenge is how to protect those strengths without damaging European companies or accelerating China’s push to develop alternatives. Europe has leverage, but it is uneven, politically difficult to use and strongest only where member states act together.
With information from Euronews
