EU Chamber warns European firms in China should prepare for digital decoupling
DIGITAL decoupling between China and the US could severely impact EU businesses in China and they should 'prepare for the worst', according to the European Chamber of Commerce in China, Reuters reports
02 February 2021 - 19:00
While political, trade and financial decoupling are concerning, China-US rivalry in the technology sphere is set to cause the biggest upset.
EU Cham, issued a report based on research from Berlin research house MERICS, which said that while political, trade and financial decoupling are worries, Sino-American technological rivalry is of the greatest concern.
Just as the United States is attempting to purge its networks of Chinese-made software and components, China, which is heavily dependent on imports of semiconductors, is pushing for digital self-reliance, it said. European companies are caught in the middle, said Reuters.
Chamber president Joerg Wuttke warned of a 'gathering storm'. Data flows, ICT equipment and digital goods and services would be where decoupling hurts companies most, he said.
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