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