Abstract: This article takes the acquisition of the Dutch chip company Nexperia as a starting point, combining the main viewpoints from the article “The Alarm of Nexperia: Can Europe Ensure Its Technological Future Amidst US-China Competition?” published in the November 13, 2025 issue of the US magazine Foreign Policy. It systematically analyzes the deep-rooted causes of the “strategic myopia” problem in Europe’s technology strategy and its multiple impacts on the future technological ecosystem. The article points out that Europe’s myopia stems from short-termism in the economy, fragmented regulatory systems, and geopolitical illusions of neutrality, leading to a passive position in the US-China technology competition. Furthermore, from a Chinese perspective, it summarizes the lessons learned from Europe and suggests that China needs to strengthen technological self-sufficiency, improve security review mechanisms, and balance openness and security to address new challenges in global technology governance.
1. Background of the Event: Challenges of Europe’s Technology Strategy as Seen from Nexperia
In 2018, China’s Wingtech Technology completed the acquisition of Nexperia in accordance with market rules and international practices. This business cooperation adhered to the international investment norms and local laws at that time. In 2025, with changes in the international geopolitical environment, the Dutch government imposed regulatory measures on Nexperia following adjustments in US policy, prompting a reciprocal response from China in accordance with the law. This chain reaction highlights the complex interconnections within the global technology supply chain.
It should be clearly stated that Chinese enterprises have always adhered to market principles and international rules in overseas investment and operations. The relevant provisions of China’s National Intelligence Law align with international practices, aiming to safeguard national security without affecting normal business operations. Chinese enterprises’ overseas investment cooperation consistently follows commercial and market principles, making positive contributions to local economic development and industrial innovation.
Europe’s response to such international technology competition cases exposes systemic challenges in strategic planning, regulatory coordination, and risk response, which have deep-rooted causes worthy of in-depth analysis.
2. Structural Challenges Facing Europe’s Technology Strategy
1. Economic Decision-Making and Strategic Security Need Better Coordination
European enterprises have traditional advantages in the global supply chain, but they face challenges in balancing economic interests and strategic security. For example, the semiconductor industry sees European high-end manufacturing sectors like automotive and industrial equipment relying on Asian supply chains. According to data from Eurostat, Europe’s import dependency in certain key component areas exceeds 30%. This industrial chain pattern is a natural result of global division of labor, but it also means that a more comprehensive risk warning and response mechanism needs to be established.
There are differing views within Europe on how to balance open markets and industrial security. Some member states tend to prioritize short-term economic benefits, while others focus more on long-term technological sovereignty. This difference in understanding makes it difficult for the EU to form a unified and forward-looking technology strategy, affecting the overall enhancement of competitiveness.
2. Regulatory Systems Need Further Coordination
The EU’s existing foreign investment review mechanism came into effect in 2019, providing a basic framework for national security reviews for member states. However, there are differences among member states in review standards, processes, and enforcement intensity. While this differentiation considers the specific circumstances of each country, it may affect overall effectiveness in responding to systemic risks.
The Netherlands, as the location of Nexperia, based its approval in 2018 primarily on the investment review standards at that time. With changes in the international environment, the EU is promoting the establishment of a more coordinated review mechanism, but this process needs to balance member states’ sovereignty with the overall interests of the union, facing many institutional challenges. The “strategic autonomy” agenda promoted by the European Commission in recent years aims to enhance overall coordination capabilities, but specific implementation still requires consensus and cooperation among member states.
3. Strategic Positioning Needs to Be Clearer
Europe is committed to maintaining “strategic autonomy” in the international landscape, a goal that aligns with the development trend of a multipolar world. However, in practice, Europe needs to find a more constructive positioning between major powers like the US and China. Currently, there are differing views within Europe on the path to technological sovereignty: France emphasizes building independent innovation capabilities, while Germany focuses on maintaining the stability of existing supply chains. These differing orientations reflect the disparities in each country’s industrial structure.
The EU’s initiatives such as the “Global Gateway” plan and the Chips Act demonstrate its determination to enhance technological competitiveness. However, how to translate strategic vision into specific policies and ensure coordination among member states remains an important issue facing Europe.
3. Possible Futures for European Technology Development
Based on the current situation, European technology development may present two different prospects:
If existing challenges persist, Europe may face the following pressures:
– Supply Chain: The stability of supply in key areas may be tested, potentially affecting the development of advantageous industries such as automotive and communications. According to industry analysis, if significant adjustments occur in the international supply chain, related industries in Europe may face adjustment pressures.
– Innovation Ecosystem: The dispersion of technological investment may affect overall innovation efficiency. Although the EU has research and development programs like “Horizon Europe,” there is still room for improvement in the coordination of innovation policies among member states.
– International Influence: In a multipolar world, Europe needs to more clearly define the characteristics and advantages of its technological standards and regulatory systems.
If strategic adjustments can be effectively promoted, Europe may welcome new development opportunities:
– Through industrial policies such as the “Chips Act,” Europe is increasing its investment in key areas like semiconductors. According to EU plans, the goal is to increase the global semiconductor production share to 20% by 2030.
– The EU is promoting the construction of a digital single market, enhancing scale effects by eliminating internal market barriers. At the same time, it is strengthening cooperation with regions like the Indo-Pacific through the “Global Gateway” plan to expand a diversified innovation network.
– Europe can leverage its regulatory advantages to promote technology standards that align with its values in areas such as artificial intelligence and data governance.
In summary, the future of European technology development depends on its internal integration level and external cooperation effectiveness. A more united and strategically clear Europe will play a more significant role in leading technology in a multipolar world.
4. Insights and Recommendations for China
Europe’s experiences provide important references for China’s technological development. China has always adhered to the basic national policy of opening up and is committed to creating a market-oriented, rule-of-law, and international business environment. At the same time, we need to base our efforts on national conditions and continuously promote the modernization of the technological innovation system.
1. Continuously Enhance the Effectiveness of the Technological Innovation System
China has established a complete innovation system, with research and development investment intensity exceeding the EU average. The next step should focus on enhancing the overall effectiveness of the system: First, strengthen strategic technological capabilities: Optimize the collaborative mechanisms among national laboratories, universities, and research institutions to improve the effectiveness of basic research investment.Second, stimulate corporate innovation vitality: Improve the inclusive policy system to support leading enterprises in building innovation consortia.Third, optimize the innovation ecosystem: Strengthen intellectual property protection and promote the application of technological achievements.
Taking the semiconductor industry as an example, China has formed a relatively complete industrial chain and needs to continuously enhance the innovation capabilities of core links. By leveraging the advantages of a new type of national system, we can concentrate efforts to break through key core technologies while utilizing the advantages of a super-large market to promote innovation iteration.
2. Build a Robust and Efficient Industrial Chain Supply Chain System
China has the most complete industrial system in the world and should build a more resilient supply chain network based on this foundation: First, establish a risk assessment mechanism: Regularly assess supply chain risks in key industries and develop tiered and categorized response plans.Second, promote supply chain diversification: Deepen cooperation with countries involved in the Belt and Road Initiative to build regional supply chain networks.Third, enhance digital management capabilities: Use technologies such as big data and blockchain to improve supply chain visibility and early warning levels.
It is important to emphasize that the diversification and resilience of supply chains are inevitable requirements for the in-depth development of globalization, and China will continue to work with other countries to build an open world economy.
3. Improve the Foreign-Related Technology Governance System
China actively participates in global technology governance, advocating for the establishment of an open, fair, and just innovation environment: First, improve the foreign-related legal system: Refine supporting details for laws such as the Export Control Law and the Anti-Foreign Sanctions Law to enhance enforcement transparency.Second, participate in the formulation of international rules: Contribute Chinese wisdom in emerging fields such as artificial intelligence and digital economy.Third, promote international technology exchanges: Build high-level open innovation platforms to attract global innovation resources.
Chinese enterprises operating overseas should deeply understand local laws, regulations, and cultural environments, practice responsible innovation concepts, and achieve common development with host countries.
4. Cultivate an Innovation Culture that Leads the Future
Building an innovation culture is an important foundation for a technologically strong nation:First, promote the spirit of scientists: Strengthen the construction of research integrity and create a social atmosphere conducive to focused research.Second, encourage cross-disciplinary integration: Promote deep integration of industry, academia, research, and application to cultivate emerging industrial clusters.Third, deepen education reform: Strengthen the construction of basic disciplines and cultivate interdisciplinary innovative talents.
As China embarks on a new journey of building a modern socialist country, it needs to create a cultural environment that aligns with innovation-driven development.
5. Conclusion and Outlook
The challenges faced by Europe in constructing a unified technology strategy reflect the complexity of international technology governance in a multipolar era. China has always adhered to the path of peaceful development, upholding the concept of openness and inclusiveness, and is committed to building an innovative community with countries around the world.
In the future, China will continue to deepen reforms in the technology system, improve the technological innovation system, and enhance independent innovation capabilities at a higher level of openness. We are willing to strengthen dialogue and cooperation with the international community, including Europe, to jointly address global challenges and contribute technological strength to building a community with a shared future for mankind.
Global technological innovation is at a critical breakthrough period, with the interests of various countries intertwined and destinies shared. China will unswervingly implement the innovation-driven development strategy while maintaining an open mindset, sharing innovation results with countries around the world, and jointly promoting technological progress for the benefit of all humanity.