Joint ventures are often the only access to the Chinese market for European companies.
Brussels Enter at your own risk: For a long time, this principle applied to European companies that wanted to open up the Chinese market and thus exposed themselves to the risk of industrial espionage. But what if the business risk of losing company secrets becomes a national security risk? When knowledge of critical technologies drains into China’s defense sector?
For a long time, Europeans had not really had these questions on their radar screens, but they are likely to occupy them intensively in the future. The focus is on the joint ventures that European companies set up in China with local partners:
- There is, for example, the Dax group Infineon, which has concluded a joint venture with the Chinese state-owned company Shanghai Automotive Industry Corporation in the sensitive chip area.
- Or the American server provider Supermicro, which is linked to the Chinese company Fiberhome via a branch in the Netherlands and is thus avoiding US sanctions.
- And there is the French armaments group Safran, which produces electronics for China’s C919 airliner with the Shanghai Aircraft Manufacturing Company, a subsidiary of the state-owned Commercial Aircraft Corporation.
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