Europe and China must move beyond tech rivalry and embrace constructive engagement in the era of artificial intelligence, according to a new report by the Centre for European Reform. The report argues that competition should not preclude collaboration on AI governance, research, and standards.
Current State of EU-China Tech Relations
The relationship between the European Union and China has become increasingly strained over technology, with both sides imposing restrictions and expressing concerns about security and dominance. However, the report highlights that both regions have much to gain from cooperation on AI, given their shared interests in addressing global challenges like climate change and public health.
"The EU and China are natural partners in setting global AI standards," said the report's author, Zach Meyers. "Instead of a zero-sum rivalry, they should focus on areas where their interests align."
Opportunities for Collaboration
The report identifies several areas for potential collaboration, including AI safety research, ethical guidelines, and the development of interoperable systems. It notes that both the EU and China have published AI ethics frameworks that share common principles, such as transparency and accountability.
According to the report, joint efforts could accelerate progress in healthcare AI, where Chinese data sets and European algorithms could combine to improve diagnostics. The report also suggests that cooperation on AI for climate modeling could benefit both regions.
Challenges to Overcome
Despite the potential, significant hurdles remain. The report acknowledges differences in political systems and values, as well as concerns over data privacy and human rights. It recommends that the EU maintain its regulatory autonomy while engaging in dialogue to build trust.
The report also warns against decoupling, stating that "complete decoupling would be costly and counterproductive." Instead, it proposes a managed relationship that balances competition with cooperation.
Impact on Global AI Governance
The report emphasizes that Europe and China together have the weight to shape global AI norms. If they can find common ground, they could influence international standards and prevent a fragmented digital landscape. The authors call for a dedicated EU-China AI dialogue mechanism to facilitate ongoing discussions.
"Constructive engagement is not about ignoring differences but about managing them while pursuing shared goals," Meyers added.



