POLICY BRIEF – No. 07/2024 - Time to Rethink Export Controls for Strengthened

07/2024 The escalation of broad export controls by the US, under the guise of national security and the aim to curb technological transfers to potential adversaries,1 marks a new epoch of bureaucratic oversight. [...] The 5th Ministerial of the EU-US Trade Technology Council (TTC) in January 2024 highlighted a commitment towards economic security, advocating for the diversification of supply chains and the alignment of export control regimes to deter the exploitation of dual-use technologies.11 This ongoing dialogue between the US and the EU reflects the intricate balance required to navigate technological domi. [...] In 2021, the IMF already cautioned that a full technological separation (decoupling) between China and the US and their allies could have far-reaching implications for global production and consumption patterns.17 Should the US persist in maintaining or escalating these measures leading to a potential drop to “0” in US semiconductor sales to China, the American Chamber of Commerce estimated that U. [...] The US Chips Act and the EU’s concerns over the “Buy America” provisions in the IRA illustrate the emerging subsidy races and the potential for significant disruptions in global trade dynamics. [...] The dialogue between the US and the EU, as seen in the TTC meetings, highlights the importance of aligning strategies to enhance supply chain resilience and counter economic coercion.