The message from Capitol Hill on both sides of the aisle is clear: Get ready for
U.S. relations with China to spiral all over again in the new year.
The one-year trade truce brokered in October between President Donald Trump and
Chinese leader Xi Jinping is already looking shaky. And lawmakers are preparing
to reup clashes over trade, Taiwan and cyber-intrusions when they return in
January.
“It’s like a heavyweight fight, and we’re in that short time period in-between
rounds, but both sides need to be preparing for what is next after the truce,”
Rep. Greg Stanton (D-Ariz.), a member of the House Select Committee on China,
said in an interview.
POLITICO talked to more than 25 lawmakers, including those on the House Select
Committee on China, the House Foreign Affairs Committee’s East Asia subcommittee
and the Congressional Executive Commission on China, for their views on the
durability of the trade treaty. Both Republicans and Democrats warned of
turbulence ahead.
More than 20 of the lawmakers said they doubt Xi will deliver on key pledges the
White House said he made in October, including reducing the flow of precursor
chemicals to Mexico that cartels process into fentanyl and buying agreed volumes
of U.S. agricultural goods.
“China can never be trusted. They’re always looking for an angle,” Sen. Thom
Tillis (R-N.C.) said.
That pessimism comes despite an easing in U.S.-China tensions since the Trump-Xi
meeting in South Korea. The bruising cycle of tit-for-tat tariffs that briefly
hit triple digits earlier this year is currently on pause. Both countries have
relaxed export restrictions on essential items (rare earths for the U.S., chip
design software for China), while Beijing has committed to “expanding
agricultural product trade” in an apparent reference to the suspension of
imports of U.S. agricultural products it imposed earlier this year.
This trend may continue, given that Trump is likely to want stability in the
U.S.-China relationship ahead of a summit with Xi planned for April in Beijing.
“We’re starting to see some movement now on some of their tariff issues and the
fentanyl precursor issue,” Sen. Steve Daines (R-Mont.) said.
But a series of issues have been brushed aside in negotiations or left in limbo
— a status quo the Trump administration can only maintain for so long. The
U.S.-China trade deal on rare earths that Bessent said the two countries would
finalize by Thanksgiving remains unsettled. And the White House hasn’t
confirmed reporting from earlier this month that Beijing-based ByteDance has
finalized the sale of the TikTok social media app ahead of the Jan. 23 deadline
for that agreement.
“The idea that we’re in a period of stability with Beijing is simply not
accurate,” said Sen. Jeanne Shaheen (D-N.H.), ranking member of the Senate
Foreign Relations Committee.
Shaheen has been sounding the alarm on China’s national security threats since
she entered the Senate in 2009. But even some lawmakers who have been more open
to engagement with Beijing — such as California Democratic Reps. Ro
Khanna and Ami Bera — said that they don’t expect the armistice to last.
The White House is more upbeat about the prospects for U.S.-China trade ties.
“President Trump’s close relationship with President Xi is helping ensure that
both countries are able to continue building on progress and continue resolving
outstanding issues,” the White House said in a statement, adding that the
administration “continues to monitor China’s compliance with our trade
agreement.” It declined to comment on the TikTok deal.
Still, the lawmakers POLITICO spoke with described four issues that could derail
U.S.-China ties in the New Year:
A SOYBEAN SPOILER
U.S. soybean farmers’ reliance on the Chinese market gives Beijing a powerful
non-tariff trade weapon — and China doesn’t appear to be following through on
promises to renew purchases.
The standoff over soybeans started in May, when China halted those purchases,
raising the prospect of financial ruin across farming states including Illinois,
Iowa, Minnesota, Nebraska and Indiana — key political constituencies for the GOP
in the congressional midterm elections next year.
The White House said last month that Xi committed to buying 12 million metric
tons of U.S. soybeans in November and December. But so far, Beijing has only
purchased a fraction of that agreed total, NBC reported this month.
“What agitates Trump and causes him to react quickly are things that are more
domestic and closer to home,” Rep. Jill Tokuda (D-Hawaii) said. China’s
foot-dragging on soybean purchases “is the most triggering because it’s hurting
American farmers and consumers, so that’s where we could see the most volatility
in the relationship,” she said.
That trigger could come on Feb. 28 — the new deadline for that 12 million metric
ton purchase, which Treasury Secretary Scott Bessent announced earlier this
month.
The Chinese embassy in Washington declined to comment on whether Beijing plans
to meet this deadline.
The White House said one of the aspects of the trade deal it is monitoring is
soybean purchases through this growing season.
THE TAIWAN TINDERBOX
Beijing’s threats to invade Taiwan are another near-term potential flashpoint,
even though the U.S. hasn’t prioritized the issue in its national security
strategy or talks between Xi and Trump.
China has increased its preparations for a Taiwan invasion this year. In
October, the Chinese military debuted a new military barge system that addresses
some of the challenges of landing on the island’s beaches by deploying a bridge
for cargo ships to unload tanks or trucks directly onto the shore.
“China is tightening the noose around the island,” said Rep. Ro Khanna
(D-Calif.), who joined a bipartisan congressional delegation to China in
September and returned calling for better communications between the U.S. and
Chinese militaries.
Some of the tension around Taiwan is playing out in the wider region, as Beijing
pushes to expand its military reach and its influence. Chinese fighter jets
locked radar — a prelude to opening fire — on Japanese aircraft earlier this
month in the East China Sea.
“There is a real chance that Xi overplays his hand on antagonizing our allies,
particularly Australia and Japan,” Rep. Seth Moulton (D-Mass.) said. “There is
still a line [China] cannot cross without making this truce impossible to
sustain.”
The U.S. has a decades-long policy of “strategic ambiguity” under which it
refuses to spell out how the U.S. would respond to Chinese aggression against
Taiwan. Trump has also adhered to that policy. “You’ll find out if it happens,”
Trump said in an interview with 60 Minutes in November.
MORE EXPORT RESTRICTIONS ON THE WAY
Beijing has eased its export restrictions on rare earths — metallic elements
essential to both civilian and military applications — but could reimpose those
blocks at any time.
Ten of the 25 lawmakers who spoke to POLITICO said they suspect Beijing will
reimpose those export curbs as a convenient pressure point in the coming months.
“At the center of the crack in the truce is China’s ability to levy export
restrictions, especially its chokehold on the global supply of rare earths and
other critical minerals,” Rep. André Carson (D-Ind.) said.
Others are worried China will choose to expand its export controls to another
product category for which it has market dominance — pharmaceuticals. Beijing
supplies 80 percent of the U.S. supply of active pharmaceutical ingredients —
the foundations of common drugs to treat everything from high blood pressure to
type 2 diabetes.
“Overnight, China could turn off the spigot and many basic pharmaceuticals,
including things like aspirin, go away from the supply chain in the United
States,” Rep. Nathaniel Moran (R-Texas) said.
China restarted exports of rare earths earlier this month, and its Commerce
Ministry pledged “timely approval” of such exports under a new licensing
system, state media reported. Beijing has not indicated its intent to restrict
the export of pharmaceuticals or their components as a trade weapon. But the
U.S.-China Economic and Security Review Commission urged the Food and Drug
Administration to reduce U.S. reliance on Chinese sources of pharmaceuticals in
its annual report last month.
The Chinese embassy in Washington didn’t respond to a request for comment.
GROWING CHINESE MILITARY MUSCLE
China’s drive to develop a world-class military that can challenge traditional
U.S. dominion of the Indo-Pacific could also derail relations between Washington
and Beijing in 2026.
China’s expanding navy — which, at more than 200 warships, is now the world’s
largest — is helping Beijing show off its power across the region.
The centerpiece of that effort in 2025 has been the addition of a third aircraft
carrier, the Fujian, which entered into service last month. The Fujian is
two-thirds the size of the USS Gerald R. Ford carrier. But like the Ford, it
boasts state-of-the-art electromagnetic catapults to launch J-35 and J-15T
fighter jets.
The Trump administration sees that as a threat.
The U.S. aims to insulate allies and partners in the Indo-Pacific from possible
Chinese “sustained successful military aggression” powered by Beijing’s
“historic military buildup,” Defense Secretary Pete Hegseth said earlier this
month at the Reagan National Defense Forum.
Five lawmakers said they see China’s increasingly aggressive regional military
footprint as incompatible with U.S. efforts to maintain a stable relationship
with Beijing in the months ahead.
“We know the long-term goal of China is really economic and diplomatic and
military domination around the world, and they see the United States as an
adversary,” Moran said.
Daniel Desrochers contributed to this report.
Tag - Software
BRUSSELS — Lawmakers in the European Parliament have called on the institution
to change its travel booking software amid fears their travel plans could be
spied on or disrupted by U.S. government interests, in a letter obtained by
POLITICO.
In a stark sign of growing unease about American tech reliance, 64 lawmakers are
pressing President Roberta Metsola to ditch the chamber’s travel-booking
provider, Carlson Wagonlit Travel, after it was acquired by American Express
Global Business Travel in September.
The lawmakers argue that the new U.S. ownership puts lawmakers at risk of
foreign snooping, as CWT has access to the “most sensitive information,”
including their “passport details, credit card data, travel arrangements and
their exact whereabouts at any given moment,” and could put them at the mercy of
American sanctions.
CWT last month canceled travel bookings for the United Nations Special
Rapporteur on the Occupied Palestinian Territories, Francesca Albanese, who was
due to speak at the Parliament in Strasbourg because of U.S. sanctions,
according to an internal email seen by POLITICO.
“The use of CWT for our travel arrangements exposes MEPs and Parliament staff to
the real and present danger of U.S. sanctions, which have already been
weaponized against European officials in the past,” the letter warns. “Such
measures are not merely theoretical; they are a direct threat to the operational
independence and dignity of our institution.”
Signatories of the letter include Andreas Schwab from the center-right European
People’s Party; Tiemo Wölken, Laura Ballarín Cereza and Aurore Lalucq from the
Socialists and Democrats; Helmut Brandstätter, Christophe Grudler, Stéphanie
Yon-Courtin and Sandro Gozi from the liberal Renew group; Alexandra Geese and
Nela Riehl from the Greens; and Leila Chaibi from The Left.
The internal email said the Parliament is working to contract an alternative
Belgian travel booking provider it can use for sanctioned individuals.
A spokesperson for the Parliament told POLITICO: “A structural solution is in
place for such situations, allowing the necessary arrangements to be made
without any delay.”
“As a matter of policy, and in compliance with applicable law, American Express
Global Business Travel does not comment on our clients,” a spokesperson for the
company said.
Organizations across Europe are growing increasingly wary of the risks of years
of reliance on U.S. tech, as the EU also tries to boost its own economic
competitiveness. Alarm bells have been ringing about the possibility that the
White House could weaponize the EU’s dependence on U.S. technology, in
particular through sanctions.
In a previous request reported by POLITICO, a cross-party group including
several of the same lawmakers urged the European Parliament to phase out U.S.
technology — most notably Microsoft — in favor of European alternatives.
“In these turbulent times, when even old friends can turn into foes and their
companies into a political tool, we cannot afford this level of dependence on
foreign tech, let alone continue funneling billions of taxpayers’ money abroad,”
that group said last month.
The International Criminal Court has moved to replace Microsoft Suite with the
German solution OpenDesk amid concerns that a new wave of U.S. sanctions could
paralyze the organization’s day-to-day operations.
“It is just unacceptable that MEPs could be prevented from fulfilling their
parliamentary duties due to a decision by the U.S. administration to sanction
them,” centrist lawmaker Anna Stürgkh told Metsola during a session of the
Parliament on Monday, pressing Metsola “to make sure that the sovereignty of
this house is ensured.”
The Parliament’s spokesperson said that the “institution’s services ensure that
all IT solutions comply with the EU legal obligations and protect user privacy.”
Gerardo Fortuna contributed reporting.
LONDON — Scandal-hit Japanese tech firm Fujitsu has lost its grip on a lucrative
contract to keep running Great Britain’s post-Brexit border with Northern
Ireland, following mounting public pressure, two people with knowledge of the
bidding process have told POLITICO.
The firm at the center of the Post Office scandal — which saw faulty data from
Fujitsu’s Horizon software lead to wrongful theft and fraud convictions of
hundreds of innocent Post Office workers — had spearheaded a consortium bid for
the £370 million contract to continue running the Trader Support Service (TSS),
as reported earlier this year.
The contract was awarded to another consortium late last month, according to the
two people cited above. The 10-day cooling-off period after the contract was
awarded ends on Tuesday.
The Fujitsu-led consortium, which includes Liz Truss ally Shanker Singham’s firm
Competere, has raked in more than £500 million since 2020 developing and
operating the platform, which helps firms navigate the complicated post-Brexit
customs arrangements between Great Britain and Northern Ireland under the
Windsor Framework.
While a new supplier will be taking control of TSS, Fujitsu retains the
intellectual property rights to a core part of the existing platform, four
people with knowledge of the process — including those cited above — confirmed.
This means the new system will have to be built from scratch.
All of those cited in this story were granted anonymity to speak freely.
There have been calls for Fujitsu to be stripped of its public contracts while
sub postmasters affected by the scandal await full compensation. In August, more
than 32 MPs and 44 peers wrote to U.K. Prime Minister Keir Starmer, urging him
to block the firm from bidding for control of the TSS platform.
In October, the government accepted all but one of the recommendations from Wyn
Williams’ inquiry into the scandal, published in July, which concluded that at
least 13 people may have taken their own lives after being accused of
wrongdoing.
There has also been public scrutiny over the running of TSS. Cabinet Office
Minister Nick Thomas-Symonds told lawmakers earlier this year he was
investigating industry concerns about the service. “We are concerned to hear
reports that the Trader Support Service is not providing a good quality of
service,” cross-party peers on the Northern Ireland Scrutiny Committee wrote in
an October report.
Meanwhile, a report by the Federation of Small Businesses found current support
relating to the Windsor Framework — including the TSS — was “falling short of
expectations,” with 78 percent of Northern Irish businesses surveyed rating it
as either “very poor” or “poor.”
A spokesperson for HMRC, which awarded the contract, said: “We follow government
procurement rules when awarding contracts, ensuring value for money for
taxpayers. All bids underwent a robust evaluation and assurance process, and we
will confirm the award in due course.”
Fujitsu and Competere did not respond to requests for comment.
The Dutch government has quietly removed Google tracking tools from job listings
for its intelligence services over concerns that the data would expose aspirant
spies to U.S. surveillance.
The intervention would put an end to Google’s processing of the data of job
seekers interested in applying to spy service jobs, after members of parliament
in The Hague raised security concerns.
The move comes at a moment when trust between the Netherlands and the United
States is fraying. It reflects wider European unease — heightened by Donald
Trump’s return to the White House — about American tech giants having access to
some of their most sensitive government data.
The heads of the AIVD and MIVD, the Netherlands’ civilian and military
intelligence services, said in October that they were reviewing how to share
information with American counterparts over political interference and human
rights concerns.
In the Netherlands, government vacancies are listed on a central online portal,
which subsequently redirects applicants to specific institutions’ or agencies’
websites, including those of the security services.
The government has now quietly pulled the plug on Google Analytics for
intelligence-service postings, according to security expert Bert Hubert, who
first raised the alarm about the trackers earlier this year. Hubert told
POLITICO the job postings for intelligence services jobs no longer contained the
same Google tracking technologies at least since November.
The move was first reported by Follow the Money.
The military intelligence service MIVD declined to comment. The interior
ministry, which oversees the general intelligence service AIVD, did not respond
to a request for comment at the time of publication.
In a statement, Communications Manager for Google Mathilde Méchin said:
“Businesses, not Google Analytics, own and control the data they collect and
Google Analytics only processes it at their direction. This data can be deleted
at any time.”
“Any data sent to Google Analytics for measurement does not identify
individuals, and we have strict policies against advertising based on sensitive
information,” Méchin said.
‘FUTURE EMPLOYEES AT RISK’
Derk Boswijk, a center-right Dutch lawmaker, raised the alarm about the tracking
of job applicants in parliamentary questions to the government in January. He
said that while China and Russia have traditionally been viewed as the biggest
security risks, it is unacceptable for any foreign government — allied or not —
to have a view into Dutch intelligence recruitment.
“I still see the U.S. as our most important ally,” Boswijk told POLITICO. “But
to be honest, we’re seeing that the policies of the Trump administration and the
European countries no longer necessarily align, and I think we should adapt
accordingly.”
The government told Boswijk in February it had enabled privacy settings on data
gathered by Google. The government has yet to comment on Boswijk’s latest
questions submitted in November.
Hubert, the cybersecurity expert, said the concerns over tracking were
justified. Even highly technical data like IP addresses, device fingerprints and
browsing patterns can help foreign governments, including adversaries such as
China, narrow down who might be seeking a job inside an intelligence agency, he
said.
“By leaking job applications so broadly, the Dutch intelligence agencies put
their future employees at risk, while also harming their own interests,” said
Hubert, adding it could discourage sought-after cybersecurity talent that
agencies are desperate to attract.
Hubert previously served on a watchdog committee overseeing intelligence
agencies’ requests to use hacking tools, surveillance and wiretapping.
One open question raised by Dutch parliamentarians is how to gain control over
the data that Google gathered on aspiring spies in past years. “I don’t know
what happens with the data Google Analytics already has, that’s still a black
box to me,” said Sarah El Boujdaini, a lawmaker for the centrist-liberal
Democrats 66 party who oversees digital affairs.
The episode is likely to add fuel to efforts to wean off U.S. technologies —
which are taking place across Europe, as part of the bloc’s “technological
sovereignty” drive. European Parliament members last month urged the institution
to move away from U.S. tech services, in a letter to the president obtained by
POLITICO.
In the Netherlands, parliament members have urged public institutions to move
away from digital infrastructure run by U.S. firms like Microsoft, over security
concerns.
“If we can’t even safeguard applications to our secret services, how do you
think the rest is going?” Hubert asked.
The country also hosts the International Criminal Court, where Chief Prosecutor
Karim Khan previously lost access to his Microsoft-hosted email account after he
was targeted with American sanctions over issuing an arrest warrant for Israeli
Prime Minister Benjamin Netanyahu. The ICC in October confirmed to POLITICO it
was moving away from using Microsoft Office applications to German-based
openDesk.
A large part of Airbus’s global fleet was grounded after the European airplane
maker discovered a technical malfunction linked to solar radiation in its A320
family of aircraft.
The European Union Aviation Safety Agency announced on Friday evening that it
was temporarily pausing flights on certain Airbus planes after a JetBlue flight
from Florida to Mexico had to make an emergency landing after a sudden loss of
altitude. Media reports indicate that some 15 people were hospitalized after the
incident.
Airbus said in a statement late Friday that it had identified an issue with its
workhorse A320 planes. “Intense solar radiation may corrupt data critical to the
functioning of flight controls,” it said, adding that it had “identified a
significant number” of affected aircraft.
A number of airlines around Europe announced that they were affected, including
Lufthansa, Swiss and Austrian Airlines. Brussels Airlines said that none of its
flights was impacted.
Sara Ricci, communications chief for Airbus’s commercial aircraft division, said
that some 6,000 aircraft were affected, but that for 85 percent of the impacted
aircraft, it would be a “quick fix” to the planes’ software.
“The vast majority will be back in the sky very soon,” Ricci said.
Today, as the world reaches a critical juncture in the fight against HIV/AIDS,
tuberculosis (TB) and malaria, the EU must choose: match scientific
breakthroughs with political will and investment or retreat, putting two decades
of hard-won progress at risk. Having saved over 70 million lives, the Global
Fund to Fight AIDS, Tuberculosis, and Malaria (the Global Fund) has proven what
smart, sustained investment can achieve.
But the impact of its work — the lives protected, the life expectancy prolonged,
the systems strengthened, the innovations deployed — is now under threat due to
declining international funding.
> The real question is no longer whether the EU can afford to invest in the
> Global Fund, but whether it can afford to let these hard-won gains unravel.
The real question is no longer whether the EU can afford to invest in the Global
Fund, but whether it can afford to let these hard-won gains unravel.
Declining international funding, climate change, conflict and drug resistance
are reversing decades of progress. HIV prevention is hampered by rising
criminalization and attacks on key populations, with 1.3 million new infections
in 2024 — far above targets. TB remains the deadliest infectious disease,
worsened by spreading multidrug resistance, even in Europe. Malaria faces
growing resistance to insecticides and drugs, as well as the impacts of extreme
weather. Without urgent action and sustained investment, these threats could
result in a dangerous resurgence of all three diseases.
The stakes could not be higher
The Global Fund’s latest results reveal extraordinary progress. In 2024 alone:
* 25.6 million people received lifesaving antiretroviral therapy, yet 630,000
still died of AIDS-related causes;
* 7.4 million people were treated for TB, with innovations like AI-powered
diagnostics reaching frontline workers in Ukraine; and
* malaria deaths, primarily among African children under five, have been halved
over two decades, with 2.2 billion mosquito nets distributed and ten
countries eliminating malaria since 2020. Yet one child still dies every
minute from this treatable disease.
What makes this moment unprecedented is not just the scale of the challenge, but
the scale of the opportunity. Thanks to extraordinary scientific breakthroughs,
we now have the tools to turn the tide:
* lenacapavir, a long-acting antiretroviral, offers new hope for the
possibility of HIV-free generations;
* dual active ingredient mosquito nets combine physical protection with
intelligent vector control, transforming malaria prevention; and
* AI-driven TB screening and diagnostics are revolutionizing early detection
and treatment, even in the most fragile settings.
Some of these breakthroughs reflect Europe’s continued research and development
and the private sector’s leadership in global health. BASF’s
dual-active-ingredient mosquito nets, recently distributed by the millions in
Nigeria, are redefining malaria prevention by combining physical protection with
intelligent vector control. Delft Imaging’s ultra-portable digital X-ray devices
are enabling TB screening in remote and fragile settings, while Siemens
Healthineers is helping deploy cutting-edge AI software to support TB triage and
diagnosis.
But they must be deployed widely and equitably to reach those who need them
most. That is precisely what the Global Fund enables: equitable access to
cutting-edge solutions, delivered through community-led systems that reach those
most often left behind.
A defining moment for EU Leadership
The EU has a unique chance to turn this crisis into an opportunity. The upcoming
G20 summit and the Global Fund’s replenishment are pivotal moments. President
Ursula von der Leyen and Commissioner Síkela can send a clear, unequivocal
signal: Europe will not stop at “almost”. It will lead until the world is free
of AIDS, tuberculosis and malaria.
The Global Fund is a unique partnership that combines financial resources with
technical expertise, community engagement and inclusive governance. It reaches
those often left behind — those criminalized, marginalized or excluded from
health systems.
> Even in Ukraine, amid the devastation of war, the Global Fund partnership has
> ensured continuity of HIV and TB services — proof that smart investments
> deliver impact, even in crisis.
Its model of country ownership and transparency aligns with Africa’s agenda for
health sovereignty and with the EU’s commitment to equity and human rights.
Even in Ukraine, amid the devastation of war, the Global Fund partnership has
ensured continuity of HIV and TB services — proof that smart investments deliver
impact, even in crisis.
The cost of inaction
Some may point to constraints in the Multiannual Financial Framework. But
history shows that the EU has consistently stepped up, even in difficult fiscal
times. The instruments exist. What’s needed now is leadership to use them.
Failure to act would unravel decades of progress. Resurgent epidemics would
claim lives, destabilize economies and undermine global health security. The
cost of inaction far exceeds the price of investment.
For the EU, the risks are strategic as well as moral. Stepping back now would
erode the EU’s credibility as champion of human rights and global
responsibility. It would send the wrong message, at precisely the wrong time.
Ukraine demonstrates what is at stake: with Global Fund support, millions
continue to receive HIV and TB services despite war. Cutting funding now would
risk lives not only in Africa and Asia, but also in Europe’s own neighborhood.
A call to action
Ultimately, this isn’t a question of affordability, but one of foresight. Can
the EU afford for the Global Fund not to be fully financed? The answer, for us,
is a resounding no.
We therefore urge the European Commission to announce a bold, multi-year
financial commitment to the Global Fund at the G20. This pledge would reaffirm
the EU’s values and inspire other Team Europe partners to follow suit. It would
also support ongoing reforms to further enhance the Global Fund’s efficiency,
transparency and inclusivity.
> Ultimately, this isn’t a question of affordability, but one of foresight. Can
> the EU afford for the Global Fund not to be fully financed? The answer, for
> us, is a resounding no.
This is more than a funding decision. It is a moment to define the kind of world
we choose to build: one where preventable diseases no longer claim lives, where
health equity is a reality and where solidarity triumphs over short-termism.
Now is the time to reaffirm Europe’s leadership. To prove that when it comes to
global health, we will never stop until the fight is won.
BRUSSELS — Call it a digital love triangle.
When EU leaders back a “sovereign digital transition” at a summit in Brussels
this Thursday, their words will mask a rift between France and Germany over how
to deal with America’s overwhelming dominance in technology.
The bloc’s founding members have long taken differing approaches to how far the
continent should seek to go in detoxing from U.S. giants. In Paris, sovereignty
is about backing local champions and breaking reliance on U.S. Big Tech. In
Berlin the focus is on staying open and protecting Europe without severing ties
with a major German trading partner.
The EU leaders’ statement is a typical fudge — it cites the need for Europe to
“reinforce its sovereignty” while maintaining “close collaboration with trusted
partner countries,” according to a near-final draft obtained by POLITICO ahead
of the gathering.
That plays into the hands of incumbent U.S. interests, even as the bloc’s
reliance on American tech was again brought into sharp focus Monday when an
outage at Amazon cloud servers in Northern Virginia disrupted the morning
routines of millions of Europeans.
As France and Germany prepare to host a high-profile summit on digital
sovereignty in Berlin next month, the two countries are still seeking common
ground — attendees say preparations for the summit have been disorganized and
that there is little alignment so far on concrete outcomes.
When asked about his expectations for the Nov. 18 gathering, German Digital
Minister Karsten Wildberger told POLITICO he wanted “to have an open debate
around what is digital sovereignty” and “hopefully … have some great
announcements.”
In her first public appearance following her appointment this month, France’s
new Digital Minister Anne Le Hénanff, by comparison, promised to keep pushing
for solutions that are immune to U.S. interference in cloud computing — a key
area of American dominance.
CONTRASTING PLAYBOOKS
“There are indeed different strategic perspectives,” said Martin Merz, the
president of SAP Sovereign Cloud. He contrasted France’s “more state-driven
approach focusing on national independence and self-sufficiency in key
technologies” with Germany’s emphasis on “European cooperation and
market-oriented solutions.”
A recent FGS Global survey laid bare the split in public opinion as well. Most
French respondents said France “should compete globally on its own to become a
tech leader,” while most Germans preferred to “prioritize deeper regional
alliances” to “compete together.”
The fact that technological sovereignty has even made it onto the agenda of EU
leaders follows a recent softening in Berlin, with Chancellor Friedrich Merz
becoming increasingly outspoken about the limits of the American partnership
while warning against “false nostalgia.”
The coalition agreement in Berlin also endorsed the need to build “an
interoperable and European-connectable sovereign German stack,” referring to a
domestically controlled digital infrastructure ecosystem.
The fact that technological sovereignty has even made it onto the agenda of EU
leaders follows a recent softening in Berlin, with Chancellor Friedrich Merz
becoming increasingly outspoken about the limits of the American partnership
while warning against “false nostalgia.” | Ralf Hirschberger/AFP via Getty
Images
Yet Germany — which has a huge trade deficit with the U.S — is fundamentally
cautious about alienating Washington.
“France has been willing to accept some damage to the transatlantic relationship
in order to support French business interests,” said Zach Meyers, director of
research at the CERRE think tank in Brussels.
For Germany, by contrast, the two are “very closely tied together, largely
because of the importance of the U.S. as an export market,” he said.
Berlin has dragged its feet on phasing out Huawei from mobile networks over
fears of Chinese retaliation, against its car industry in particular.
The European Commission itself is walking a similar tightrope — dealing with
U.S. threats against EU flagship laws that allegedly target American firms,
while fielding growing calls to unapologetically back homegrown tech.
STUCK ON DEFINITION
“Sovereignty is not a clearly defined term as it relates to technology,” said
Dave Michels, a cloud computing law researcher at Queen Mary University of
London.
He categorized it into two broad interpretations: technical sovereignty, or
keeping data safe from foreign snooping and control, and political sovereignty,
which focuses on strategic autonomy and economic security, i.e safeguarding
domestic industries and supply chains.
“Those things can align, and I do think they are converging around this idea
that we need to support European alternatives, but they don’t necessarily
overlap completely. That’s where you can see some tensions,” Michels said.
Leaders will say in their joint statement that “it is crucial to advance
Europe’s digital transformation, reinforce its sovereignty and strengthen its
own open digital ecosystem.”
“We don’t really have a shared vocabulary to define what digital sovereignty is.
But we do have a shared understanding of what it means not to have digital
sovereignty,” said Yann Lechelle, CEO of French AI company Probabl.
Berlin isn’t the only capital trying to convince Europe to ensure its digital
sovereignty remains open to U.S. interests.
Austria, too, wants to take “a leading role” in nailing down that tone, State
Secretary Alexandre Pröll previously told POLITICO. The country has been on a
mission to agree a “common charter” emphasizing that sovereignty should “not be
misinterpreted as protectionist independence,” according to a draft reported by
POLITICO.
That “will create a clear political roadmap for a digital Europe that acts
independently while remaining open to trustworthy partners,” Pröll said.
Next month’s Berlin gathering will be crucial in setting a direction. French
President Emmanuel Macron and Merz are both expected to attend.
“The summit is intended to send a strong signal that Europe is aware of the
challenges and is actively advancing digital sovereignty,” a spokesperson for
the German digital ministry said in a statement, adding that “this is not about
autarky but about strengthening its own capabilities and potential.”
“One summit will not be enough,” said Johannes Schätzl, a Social Democrat member
of the German Bundestag. “But if there will be an agreement saying that we want
to take the path toward greater digital sovereignty together, that alone would
already be a very important signal.”
Mathieu Pollet reported from Brussels, Emile Marzolf reported from Paris and
Laura Hülsemann and Frida Preuß reported from Berlin.
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Gordon Repinski im Gespräch mit BMW-Chef Oliver Zipse. Im Zentrum: Der neue SUV
iX3 und die „Neue Klasse“. BMWs frontaler Angriff auf Tesla und chinesische
Hersteller wird am heutigen Freitag, 11 Uhr deutscher Zeit der Öffentlichkeit
offiziell vorgestellt. Zipse erklärt die neue Designsprache „Licht statt Chrom“,
das „Panoramic Display“ im Innenraum und warum auch der Sound einer sich
öffnenden oder zuschlagenden Autotür mit entscheidet.
Der CEO spricht über den harten Wettbewerb in China, seinen persönlichen
Austausch mit Donald Trump über die US-Zölle und warum BMW trotz schwieriger
Zeiten nicht in der Krise steckt.
Es geht außerdem über die zurückliegenden Monate seiner Amtszeit, die Zukunft
der deutschen Autoindustrie und was er vom angekündigten „Herbst der Reformen“
der Bundesregierung erwartet.
Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski
und das POLITICO-Team liefern Politik zum Hören – kompakt, international,
hintergründig.
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LONDON — More than 70 MPs and peers have urged U.K. Prime Minister Keir Starmer
to block scandal-hit tech firm Fujitsu from bidding for control of a major
post-Brexit software platform.
The Japanese IT giant continues to face intense public scrutiny after faulty
data from its Horizon software led to 1,000 innocent workers at the U.K.’s Post
Office being wrongly convicted.
In a letter to the prime minister seen by POLITICO, 32 MPs and 44 peers
expressed concern that Fujitsu continues to bid for public contracts, including
a contract with HM Revenue and Customs to run the Trader Support Service (TSS).
Fujitsu is bidding for a £370 million contract to retain control of the
platform, which helps businesses navigate complex post-Brexit customs
arrangements for moving goods between Great Britain and Northern Ireland.
Fujitsu’s bid was first reported by POLITICO in July.
Continuing to award public contracts to the firm “raises serious questions about
the standards of fairness, accountability, and due diligence guiding public
procurement in this country,” the letter said. “What message does it send when a
company responsible for such harm is allowed to continue profiting from public
money, unpenalised and unaccountable?”
The U.K. lawmakers urge the government to institute a review of Fujitsu’s
eligibility to bid for critical public services, including its current re-tender
for the TSS. They also ask that “any government supplier involved in systemic
failures, like Fujitsu, demonstrate meaningful remediation and cooperation with
compensation processes as a condition of continued commercial engagement.”
“This is not only about money,” the letter added. “It is about justice,
accountability, and whether it is morally acceptable for Fujitsu to continue to
profit from the public purse. The Post Office Horizon scandal destroyed lives.
That injustice must not be compounded by the continuing awarding of lucrative
government contracts to Fujitsu.”
Their letter, first reported by The Times, comes at an awkward time for the
government, as Trade Minister Douglas Alexander embarks on a four-day trip to
Japan to boost trade ties.
A government spokesperson said: “We have been clear that those responsible for
the Horizon scandal must be held to account. Fujitsu has committed to withdraw
from bidding for contracts with new government customers until the Post Office
Inquiry concludes. We will not hesitate to take action, where appropriate, based
on the final findings.”
A Fujitsu spokesperson said: “We have apologised for, and deeply regret, our
role in sub-postmasters’ suffering. We hope for a swift resolution that ensures
a just outcome for the victims. We are considering the recommendations set out
by Sir Wyn in Volume One of the Inquiry’s report, and are engaged with
Government regarding Fujitsu’s contribution to compensation.”
PARIS — Europe’s disunited governments are in denial about the extent to which
violence is shaping global politics and must step up to assert their combined
force as a hard power, the chief of defense staff of the French military has
warned in a sweeping interview.
“A weakened Europe may find itself tomorrow as a hunted animal, after two
centuries of the West setting the tone,” General Thierry Burkhard said in
unusually outspoken remarks to POLITICO and French newspaper Libération. “It’s
not only about armed forces, but about the fact that hard power dynamics now
prevail.”
Burkhard warned that Europe’s fragmented countries would have to bind together
more tightly as a strategic force to counteract the “spheres of influence” being
built by China, Russia and the U.S.
“On the one hand, European countries have never been so strong. On the other,
there is a form of denial from governments and populations in the face of the
level of violence in the world today,” he added.
The French general’s reality check echoes a growing number of warnings about
Europe’s weakness.
Former European Central Bank chief Mario Draghi also stressed last week the EU
had to stop pretending it could exercise global influence just as an economic
force and consumer market. He insisted the bloc had received a “very brutal
wake-up call” from Donald Trump that it needed to think in far more strategic
terms about security and defense spending.
Italian Prime Minister Giorgia Meloni on Wednesday accused the European Union of
sliding into irrelevance on the world stage. “We must be willing to pay the
price of our freedom and our independence,” she said.
Burkhard, who leaves his job at the end of the month to be replaced by Air Force
General Fabien Mandon, has been at the helm of France’s military since 2021.
Under his watch, France’s armed forces boosted their presence on Europe’s
eastern flank and became more active in NATO while preparing for high-intensity
warfare. In the past months, the French general also co-chaired the coalition of
the willing, a group of countries working on security guarantees for Ukraine in
case of a ceasefire with Russia.
Burkhard described a world defined by four political factors: The use of force
to resolve conflicts; a push by countries including China, Russia, North Korea
and Iran to challenge the West; the power of information warfare; and the impact
of climate change.
“More than Russian tanks, the establishment of a de-Westernized alternative
order threatens Europeans. If Russia can break Europe without an armed attack,
that is the path it will choose,” France’s highest-ranking military
officer said, speaking in his office at the armed forces ministry’s Paris
headquarters, known as Balard.
“In tomorrow’s world, the strategic solidarity uniting European countries must
be very, very strong. No country in Europe can be a major player alone,”
Burkhard added. “It’s not about building something against the United States or
even against Russia, but rather about achieving the critical mass needed to have
influence and avoid being sold off by the slice.”
The challenge for Europeans has always been to speak with one voice, especially
when it comes to defense policy. Madrid’s push to be exempt from NATO’s new 5
percent of GDP defense spending target, following comments by Prime Minister
Pedro Sánchez that Russia doesn’t pose an immediate threat to Spain, highlights
how differently European nations perceive threats.
“The difficulty with European defense is to encompass the strategic interests of
European countries as a whole,” Burkhard said. “Estonians do not have the same
strategic vision as the Portuguese; no one can deny that. A middle ground must
be found.”
‘MOMENTUM’ FOR UKRAINE SECURITY GUARANTEES
Those strategic interests include preserving Ukrainian independence, and there
is growing pressure on European countries to step up.
Despite many unanswered questions, discussions around security guarantees for
Kyiv picked up steam in the past weeks, following Trump’s Aug. 15 Alaska meeting
with Russian President Vladimir Putin.
“The U.S. president’s very strong desire to reach a peace agreement is bringing
new momentum,” Burkhard said, speaking one day after flying back from Washington
for military talks.
After a White House gathering with Ukraine’s Volodymyr Zelenskyy, France’s
Emmanuel Macron, Germany’s Friedrich Merz and Meloni, among others, the Trump
administration even signaled openness to contribute to security guarantees. That
could reportedly include intelligence, surveillance and reconnaissance assets,
as well as command and control and air support.
For most European capitals, U.S. military backing is a precondition to engage in
any effort to monitor a potential peace agreement in Ukraine.
“The Americans mainly believe that the Europeans must demonstrate their
commitment to taking responsibility,” Burkhard stressed. “It’s a chicken or egg
dilemma: Some countries are only prepared to commit if there are American
guarantees. But it’s not really a military debate, it’s a political one.”
While the “best security guarantees would be to demonstrate American
determination in the event of a peace agreement violation,” military operations
could include troops in Ukraine, air patrols over the country, ensuring that
shipping traffic resumes in the Black Sea, and helping to build the Ukrainian
army, the French general explained.
“To restore the Ukrainians’ confidence, we need to send the signal that European
countries, possibly supported in some way by the United States, are ready to
provide guarantees,” the French general said. “Providing guarantees often means
taking risks.”
The danger is that any military contingent becomes involved in the war —
especially as the Kremlin repeatedly said it doesn’t want European troops in
Ukraine. That’s why the rules of engagement — meaning what militaries in Ukraine
would do in case of a Russian attack — remain a key question.
“If you are going to uphold a peace agreement, the rules of engagement are
self-defense. That’s quite logical,” Burkhard said.
‘CHOSEN’ VS ‘IMPOSED’ WARS
The high intensity conflict in Ukraine is triggering a deep rethink of how
Western armed forces operate, according to Burkhard.
“We have moved from chosen wars — in Iraq, Afghanistan, or Mali — to imposed
wars,” the French general said.
In what he calls “chosen wars,” political and military leaders retain control
over how much ammunition is fired, how long troops remain and how many personnel
are deployed. Imposed wars are existential conflicts with no such choices. “If
the Ukrainians don’t fight 100 percent [against Russia], they will disappear.
That’s what imposed wars mean,” he added.
To face the new reality, Burkhard argued, Western armed forces have to diversify
their arsenals. “The question of ‘what kills what and at what cost’ is central.
If we only develop high-tech weapons that kill but are actually very, very
expensive, we will probably not succeed,” he said, adding that armed forces also
need low-cost weapons of attrition.
The French general pushed back against the argument that the French armed forces
could only last a few days in a high intensity conflict because munitions stocks
are too low. France would not fight Russia on its own but alongside NATO allies,
he emphasized.
“Our ammunition stocks are not as high as they should be because we have focused
more on chosen wars,” Burkhard added. “Does it mean the French armed forces are
not able to engage in operations? No. They can do so tonight if necessary.”