EU Restricts China From Horizon Europe Grants

The European Union has barred Chinese organizations from participating in Horizon Europe grants in critical technology areas. The restrictions, prompted by research security and intellectual property concerns, apply to fields including AI, quantum computing, semiconductors, and biotech. This strategic rebalancing of research partnerships affects eligibility and compliance requirements for applicants to the €93 billion framework.

- The policy shift is part of the EU's broader "de-risking" strategy and focus on "strategic autonomy," moving away from a long-standing open collaboration policy that began with a 1998 Science and Technology Cooperation Agreement. This change reflects a new geopolitical view of China as a partner, competitor, and systemic rival. - The restrictions are detailed in the Horizon Europe 2026-27 Work Programme and specifically target Pillar 2, "Global Challenges and European Industrial Competitiveness," barring Chinese entities from clusters related to Health, Civil Security, and Digital, Industry, and Space. However, collaboration can continue in areas like climate, energy, mobility, and agriculture. - A complete ban from all parts of the program is applied to specific institutions, notably universities linked to China's Ministry of Industry and Information Technology, often called the "Seven Sons of National Defence," due to their close military ties. - This tightening of rules follows earlier steps, such as a 2023 ban on Chinese organizations participating in "Innovation Actions" projects that are close to market readiness. The new rules also extend to EU-based subsidiaries controlled by Chinese companies in sensitive fields. - The European Commission has been developing a framework to combat foreign interference for several years, publishing a toolkit in January 2022 to help research organizations safeguard against intellectual property theft and espionage. - The policy requires non-Chinese applicants in sensitive fields to prove their partners are not owned or controlled by Chinese entities, shifting the compliance burden onto the applicants themselves. - This move aligns the EU more closely with the United States, which has also taken steps to limit research collaboration with China due to national security concerns, as seen in legislation like the US Innovation and Competition Act (USICA). - While collaboration in sensitive areas is now restricted, the EU and China are still discussing a "Joint Roadmap" for future cooperation and maintain flagship initiatives in less sensitive areas like Food, Agriculture, and Biosolutions (FAB) and Climate Change and Biodiversity (CCB).

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