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ARTICLE · 27 JULY 2026

Beyond De-risking: How European Companies Can Develop New Technologies In China

European companies are deepening technology investments in China through three distinct paradigms of intellectual property management, moving beyond simple market access arrangements to genuine co-creation. This strategic shift demonstrates how advanced IP governance systems enable firms to benefit from China's innovation ecosystem while maintaining technological sovereignty, transforming geopolitical challenges into competitive advantages through controlled engagement rather than withdrawal.

ChinaIntellectual Property

Since early 2026, frequent visits by European leaders to China have highlighted significant shifts in Europe-China industrial cooperation. Despite the European Commission’s focus on derisking and the imposition of tariffs on Chinese electric vehicles, European companies are increasing technology investments in China, engaging in meaningful technology co-creation rather than simply relocating capacity. This is not abandoning de-risking, but reflects a strategic push for controlled deep engagement amid complex geopolitics. Aria Tian explains how we can better understand this transformation.

Paradigm I: R&D localisation – balancing security and efficiency

When research and development (R&D) functions are established by European companies in China, a fundamental question immediately arises: How can Chinese teams properly participate in R&D while protecting core technology assets? This is a core management challenge that all companies adopting Paradigm I must face. Based on industry

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