Why it matters: Technology has become the central battlefield of geopolitical competition. According to a new report by the Center for European Policy Analysis, the United States and Europe share a strategic interest in preventing China from dominating the global tech ecosystem.
- The report is also the focus of a policy event in Rome today, organized by our sister media Formiche at the Italian Chamber of Deputies.
Tech-Agenda-2030: But the transatlantic relationship is unbalanced: the United States leads in many digital technologies while Europe risks falling behind in innovation and competitiveness.
- A widening gap would not only weaken Europe but also undermine the broader Western alliance in its technological rivalry with Beijing.
The big picture: The report argues that a coordinated transatlantic tech strategy is the only viable alternative to China’s ambitions for global technological dominance.
- The US-Europe economic relationship already represents the largest integrated market in the world. Trade between the two sides exceeded $1.3 trillion in goods in 2023, making Europe a far more significant economic partner for Washington than China.
Tech-Agenda-2030: At the same time, American tech companies play a central role in Europe’s digital ecosystem through major investments in data centres, infrastructure, and digital services.
- The report’s core argument is simple: neither side can compete effectively with China alone.
What the report proposes: CEPA outlines a roadmap for deeper transatlantic cooperation across several strategic technologies.
- Align export controls on AI and critical technologies. Washington should coordinate its export control regime with Europe to prevent technology leakage while maintaining trust among allies.
- Protect transatlantic data flows. Maintaining the EU-US Data Privacy Framework is essential for digital trade and the development of artificial intelligence.
- Develop shared AI standards. The report calls for closer cooperation between US and European standard-setting institutions to ensure common rules for AI governance and safety.
- Expand collaboration on quantum computing. While US companies lead private investment, Europe has committed nearly €7.7 billion in public funding for quantum technologies, making it a key partner in the emerging sector.
- Build a joint semiconductor strategy. The report highlights the complementarity between US leadership in chip design and Europe’s dominance in semiconductor lithography technology.
- Coordinate investments in space. The United States leads in reusable rockets and satellite constellations, while Europe contributes capabilities such as the Galileo navigation system and the Ariane launch program.
- Use NATO defence spending to accelerate innovation. New commitments to raise defence spending could open the door to deeper cooperation between US tech companies and European defence industries.
- Secure critical mineral supply chains. The report recommends stronger coordination to reduce dependence on Chinese-controlled mineral supply chains and support alternative projects such as the Lobito Corridor in Africa and the India–Middle East–Europe Economic Corridor.
Europe’s challenge. The report also highlights internal challenges on the European side.
- Brussels has prioritised digital regulation — including the GDPR, the Digital Markets Act, and the Digital Services Act — but these rules can slow innovation if implemented too rigidly.
Tech-Agenda-2030. European companies report spending large portions of their engineering resources on regulatory compliance rather than on innovation.
- CEPA argues that Europe must shift its focus from regulation toward competitiveness if it wants to remain a credible technology partner for the United States.
The bottom line: The report concludes that technology cooperation will define the future of the transatlantic alliance.
- Without a coordinated strategy, the risk is the emergence of a fragmented global tech system with competing standards, isolated data ecosystems, and geopolitical barriers to innovation.
- In that scenario, China — already investing heavily in artificial intelligence, quantum computing, and digital infrastructure — could gain a decisive advantage in shaping the global technological order.
