While China and the US build the future, Europe lags ten years behind

By Mads Christiansen, CEO and Fund Manager at Aarhus-based NewDeal Invest. The post is an expression of the writer’s own opinion.

China is transforming itself from the world’s manufacturing powerhouse to a technological and thus military superpower. It is no longer low-wage labor, but advanced manufacturing and investments in artificial intelligence, energy production and automation that are driving growth. Future military power will – as always – depend on technological control, production capacity and access to energy. In all three areas, China has put itself in a leadership position.

American companies like NVIDIA, Amazon and Tesla are leading the way in AI and satellite technology, and Chinese giants like Huawei and SMIC are investing heavily in chips and digital infrastructure. China has launched its own manned space station and increasingly controls the value chains from raw materials to finished technology, and the US is re-establishing production and strengthening alliances with India and Arab countries, among others.

At the same time, the US and China are ramping up significantly in energy: the US will double its production and China plans to almost triple it. In Europe, we are doing the opposite. The phasing out of coal and nuclear power has led to expensive power and unstable grids – most recently with blackouts in Spain. Without abundant, cheap energy, AI ambitions are meaningless. Before we talk technology, we need to solve the energy crisis.

If Europe is to assert itself, it requires at least 10 years of determined effort. In the West, we have the skills, but we have forgotten how fast we can move when we put our minds to it. Since the fall of the Berlin Wall, we have rested on our laurels and considered ourselves winners. Meanwhile, the management layers of many European societies have become dominated by administrators, while countries like India and China have given more power to engineers and entrepreneurs. This is reflected in the increasing number of Indians in top positions in large American tech companies.

A new definition of power

We are facing a new definition of power. Military strength used to be measured in soldiers, tanks and planes – today it’s about dominance in artificial intelligence, automation and access to stable energy. China understands this and is investing heavily in the technologies that will shape its future economy and defense.

At the same time, they are building close relationships in the Global South – partnerships that go beyond economics to political influence. The US has also shifted gears. Through new trade agreements and strategic partnerships with India and the Arab countries, among others, access to technology is coupled with demands for strategic alignment.

Europe’s strategic hesitation

In Europe, we have discussed digital regulation and the green transition, but we have yet to make the necessary investments in the critical technologies of the future. Energy prices are a growing challenge – AI production will increasingly be measured in price per token, and without access to cheap and stable power it is impossible to compete globally. Without a clear and coordinated vision for technological independence, energy security and digital infrastructure, Europe is in danger of slipping further behind.

Technology is not a luxury – it’s security policy

It’s no longer a theoretical threat – it’s a reality in both China and the US. Technology is not a luxury. It has become part of national security. Chinese companies act as strategic tools of the state and American tech giants work closely with defense and national authorities. In Europe, we have yet to translate this realization into concrete action and political priority. Every day we hesitate, we lose ground – both economically and geopolitically.

But it is not too late. Europe has the resources, expertise and economic strength to play a leading role. We’ve just forgotten what it takes to act quickly and decisively. It requires leaders with vision, the ability to cut through bureaucracy and the courage to invest heavily and purposefully. While the US, China and Saudi Arabia are led by people with clear goals and technological understanding, Europe is still characterized by a civil service that lacks direction, technological understanding and speed.

Either we choose to join – or we choose to be left behind

We are faced with a choice: Either we fully engage – or we get left behind. Because in the technological race for global influence, no one is waiting. The hope is that AI is only just beginning to shape our future. The US’ orientation towards new partners in the Global South is a wake-up call.

Now is the time for Europe to decide whether we want to be at the table – or simply observe from the outside while others shape the rules of the game.

Indlægget While China and the US build the future, Europe lags ten years behind blev først udgivet på TechSavvy.