Europe is “sleepwalking” into a series of economic and national security problems because of an over-reliance on Chinese green technology, according to experts.
A report co-authored by Michael Collins, a former deputy head of national security strategy at the UK Cabinet Office, described the risks of depending on China for green tech as “serious”.
“Europe risks sleepwalking into a series of economic and geopolitical national security problems because of over-reliance on Chinese low-carbon technology,” he said.
The report said Europe was heavily dependent on Chinese green technology, with China supplying 98% of the continent’s solar panels; 88% of imports of lithium-ion batteries, which are used in smartphones, electric vehicles and large-scale energy storage; and 61% of imports of inverters, which integrate renewable energy with a power grid. Chinese EV brands are also increasingly popular across Europe.
The report said potential threats included China using “kill switches” to remotely disable solar panels, EVs or power grids. However, the report said such an attack was “very unlikely” unless China was at war or near conflict, given the risk of inciting retaliation.
“The national security risks of dependency on China for low-carbon technology are not the same as dependency on fossil fuel imports – but they are serious,” it said, adding: “It is striking how poorly recognised the risks and their impact appear to be.”
The report was commissioned by Loom, a non-profit organisation that focuses on economic, environmental and national security issues, and was funded by the New Energy Industrial Strategy Center, a US-based non-profit. It was co-authored by Michal Meidan, the head of the China energy research at the Oxford Institute for Energy Studies.
The report claimed it was “very likely” that China used green tech to conduct surveillance, such as using offshore energy infrastructure to track submarine movements or use audio and video captured by EVs.
Supply chain disruption, whereby China restricts supply of low-carbon tech and components, whether deliberately or due to unforeseen events such as extreme weather, was described as “likely” by the authors. The prospect of China dependence creating long-term economic harm was characterised as “very likely”, with the report saying Europe’s industrial competitiveness would be eroded – as shown by Chinese dominance of solar, EVs and batteries.
“Where the west once led, China now dominates,” said the report.
It said a host of European industries could be affected by reliance on Chinese green technology, including car and wind tech manufacturing, with AI development also potentially affected. The defence sector also relies on many of the same components and manufacturing techniques as green tech, the report added, and as a result that industry could become more dependent on China as well.
As China’s importance to Europe’s energy systems grows, it will be able to have a greater effect on the continent’s ability to stand up to the country during disagreements.
“Europe does not want to be forced to choose between condemning and opposing Chinese activity in the South China Sea, or keeping their energy transition on track,” said the report.
It added that the relationship with the US could also make dependence on China problematic, because Washington could demand removal of Chinese suppliers or components