China Slaps Sanctions on 63 Tech Sectors as It Surpasses the West in Batteries and AI
China has now caught up with—and in many cases surpassed—the West across a wide range of technologies, from electric-vehicle batteries and high-speed trains to artificial intelligence and advanced medicine, while simultaneously drafting sanctions covering 63 technology sectors to retaliate against US-led export controls.
Beijing’s rapid industrial dominance is reshaping global competition. A new analysis describes the strategy as “How China is Devouring Europe,” highlighting the country’s control over entire value chains in sectors once led by Western nations [168250]. In electric-vehicle batteries, high-speed rail, artificial intelligence, and advanced medicine, Chinese firms are now aiming to dictate the terms of production and innovation.
At the same time, China has drafted a comprehensive sanctions list covering 63 technology sectors to counter US-led restrictions [164622]. The proposed sanctions target semiconductors, artificial intelligence, quantum computing, aerospace systems, supercomputers, and other dual-use technologies—items that can serve both civilian and military purposes. The move marks a shift from defensive measures to a more assertive strategy, though details on implementation remain unclear.
The European Union has also taken notice. The European Commission released new “technological sovereignty” proposals on Wednesday aimed at reducing “risky dependencies” on suppliers from both the United States and China [166192]. The plan focuses on cloud computing, artificial intelligence, and semiconductor production, warning of a hidden “kill switch” that could allow foreign governments to shut down or disrupt vital technology services in Europe.
The rivalry between Beijing and Washington is also expanding into biotechnology. For years, China’s biotech sector was seen mainly as a low-cost manufacturing base, but sustained investment, lower costs, and faster development cycles have turned it into a key area of competition between the two powers [164946].
Beijing has further tightened its grip on industry by introducing tough new rules that allow it to punish companies that move their manufacturing out of China [147482]. Multinational firms now face conflicting demands as they try to do business in the United States, Europe, and China simultaneously, with the new rules giving Chinese authorities more control over factory closures and relocations.