"EU Appears to Agree with US to Block AI Chip Transfers to China... Indirect References Throughout Statement"

US and EU Strengthen Controls on AI Chip Exports
Joint Statement Signals Coordinated Effort to Limit China’s Access to Advanced Technology

There is analysis suggesting that the European Union (EU) may have reached an agreement, as part of a trade deal with the United States, to purchase a large quantity of American artificial intelligence (AI) chips while blocking their transfer to China.

The Hong Kong-based South China Morning Post (SCMP) reported on the 21st (local time) that although the joint statement released by the US and EU does not directly mention China, there are several indirect references throughout.

The statement includes provisions that the EU will purchase AI chips worth $40 billion and will adopt US security standards "to prevent the leakage of technology to destinations of concern." SCMP interpreted "destinations of concern" as a euphemism for China. The Donald Trump administration lifted the restrictions on EU purchases of US-made AI chips that were put in place during the previous Joe Biden administration, but the report noted that the US still seeks to control the final destination of the chips.

In this regard, Maros Sefcovic, the EU Commissioner for Trade and Economic Security, stated at a press conference that they have pledged to ensure that semiconductors do not fall into the "wrong hands."

He said, "They (the US side) want the AI chips that come to Europe to remain in Europe, to be used for the benefit of the European economy, and to prevent them from being transshipped elsewhere," adding, "This is a standard procedure for sensitive technologies."

He continued, "It is important to have access to such cutting-edge technology," and added, "We are prepared to work with the US to comply with all security requirements on both the EU and US sides and to ensure that sensitive technology does not fall into the wrong hands."

Regarding these remarks, SCMP explained that the US and EU are resuming cooperation on economic security measures and that they will jointly respond to restrict China’s access to advanced technology.

Commissioner Sefcovic mentioned China’s weaponization of rare earth elements, saying, "It is only natural to seek common solutions and approaches," and added, "I think there is a growing awareness among member states that we need to do much more together." He further stated, "From the reactions of member states this morning, I sensed a strong willingness to cooperate much more closely with NATO allies and the US in this field."

The statement also includes provisions to jointly address issues such as non-market practices and unfair competition, which SCMP explained are expressions used to refer to China’s policies.