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Europe Faces Tough Road to Compete in Global AI Race
Artificial intelligence has moved from a specialized field to a central driver of global economic and technological power. The United States and China are leading the charge, investing tens of billions of dollars into AI development and rolling out powerful models supported by major tech companies and sprawling data centres.
Europe, despite its strong academic and research foundations, is struggling to transform its scientific expertise into globally competitive AI companies and technologies. Experts say the EU is falling behind, and the opportunity to dominate the AI space is narrowing.
Funding gaps are a key obstacle. US investment in AI dwarfs Europe’s, prompting many EU-trained engineers to leave the bloc for better-funded opportunities in Silicon Valley. While European startups are emerging, they remain largely reliant on US investors or face foreign acquisitions, limiting the region’s ability to grow homegrown AI champions.
The EU has chosen a different approach, emphasising regulation, ethics, and oversight through the AI Act and strict data protection rules. Proponents argue that Europe could become a global standard-setter, creating AI systems that are safe, transparent, and aligned with human rights. Critics, however, warn that this approach could slow innovation and allow other regions to pull ahead in commercial applications and technological scale.
Policymakers face a difficult balancing act between fostering innovation, ensuring safety, and maintaining ethical standards. The region’s ability to retain talent and encourage investment while enforcing strict rules is likely to shape its position in the global AI landscape over the next decade.
As AI continues to reshape industries, economies, and societies, the debate over Europe’s role grows more urgent. Has the EU already lost the AI battle, or can it still catch up? How much risk and disruption should Europe accept to stay competitive?
The public is being invited to weigh in. Take our poll and share your view. Your perspective is valuable: the survey is anonymous, takes just a few seconds to complete, and the results will be featured across EU.XL coverage in videos, articles, and newsletters. Insights from the poll will help shape reporting as the EU explores strategies to secure its place in the age of artificial intelligence.
Europe’s AI future will depend on the ability to balance regulation, innovation, investment, and talent retention. Decisions made today will determine whether the bloc can become a global AI leader or remain a follower in a rapidly evolving technological landscape.
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EU Must End ‘Naivety’ on Trade and Confront China’s Industrial Strategy, Says French Minister
France’s Minister for Foreign Trade, Nicolas Forissier, has called on the European Union to abandon what he described as “naivety” in its approach to global trade, urging a tougher stance on countries accused of distorting markets through industrial policy and trade practices.
Speaking in an interview with Euronews’ 12 Minutes With programme, Forissier said Europe must respond more firmly to what he described as the weaponisation of trade dependencies, warning that China in particular could damage its own long-term interests by undermining European industry.
“The Chinese have to understand that they won’t win anything if they destroy the European industry and then the European market, which is an essential market for them,” he said. “We must no longer be naive.”
His comments come as the European Commission prepares to hold an “orientation debate” next week on how to respond to a surge of low-cost Chinese imports. The discussion is expected to shape possible new trade defence measures, with further talks likely when EU leaders meet in Brussels in mid-June.
Forissier said the shift in thinking was not limited to China alone but applied to any country using commercial leverage to gain strategic advantage. “It is not only China,” he said. “It is all the countries that weaponise trade.”
Among the proposals under consideration is a requirement for EU companies to diversify supply chains, sourcing components from at least three different suppliers in order to reduce dependency on any single foreign market. Asked whether he supported such a measure, Forissier replied: “Yes, we have to.”
Other options include targeted tariffs on sensitive industries such as chemicals, alongside stronger use of anti-dumping and anti-subsidy tools to counter imports priced below domestic market levels. These measures are designed to address concerns over overcapacity in China’s industrial sector and its impact on European manufacturers.
The debate is taking place against a backdrop of widening trade imbalances. EU goods imports from China exceeded exports by €359.3 billion in 2025, marking an increase of nearly 20% compared with the previous year.
China has already warned it could retaliate if the bloc imposes new restrictions, raising concerns about potential escalation in trade tensions between two of the world’s largest economies.
France has repeatedly pushed for a more assertive European trade policy, arguing that state subsidies, export controls on raw materials and industrial overproduction in major economies are distorting global markets.
Forissier stressed that Europe must maintain open dialogue with Beijing while defending its own industrial base. “We try to respect the Chinese,” he said. “The Chinese have to respect us, and this is the message European institutions have to send.”
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