**Singapore**: The European Commission is ramping up efforts to collaborate on AI with the US, focusing on chip manufacturing and semiconductors to avoid a potential €100 billion tariff escalation and counter China’s dominance in critical minerals and tech supply chains.
The European Commission is intensifying its efforts to forge a closer partnership with the United States in the realm of artificial intelligence (AI), aiming to avert an escalating trade war with its most significant economic ally. In remarks made during a visit to Singapore, European Commissioner for Trade Maroš Šefčovič underscored the shared objectives of the EU and the US in AI, notably the establishment of AI manufacturing capabilities essential for tech giants such as Apple, Google, and Meta.
Šefčovič highlighted the complementary strengths of both regions, with the EU being particularly adept in producing chip-making equipment, while the US excels in semiconductor design. This synergy is exemplified by firms like ASML, a Dutch company pivotal in producing lithography machines for chip manufacturing, alongside Nvidia, a leading US semiconductor manufacturer recognised for its substantial market capitalisation. “We have the printing machines, which are printing the chips, they have the technology, and I believe that we are allies,” Šefčovič stated, emphasising the mutual benefits of cooperation.
The renewed focus on collaborative AI initiatives forms part of a broader strategy by the European Commission to sidestep additional tariffs on European exports. Šefčovič hinted at forthcoming proposals aimed at rebalancing measures to counter threats of US tariffs on European goods, which could amount to €100 billion. These discussions are particularly pertinent as the EU recently paused retaliation against US tariffs valued at €21 billion, which had been a response to a 20% levy on European imports proposed by the Trump administration.
In addition to AI collaboration, Šefčovič indicated that future discussions would reaffirm previous promises from the EU to increase imports of US liquefied natural gas and soybeans. He also suggested a need for coordinated efforts between Brussels and Washington to manage critical minerals, crucial for the production of batteries, electric vehicles, and semiconductors—a sector in which China currently holds significant sway. Responding to China’s dominance, which includes being the largest steel exporter and a major player in mining essential minerals, Šefčovič called for a unified approach to combat overcapacity in steel production.
This proactive stance from the EU comes as it attempts to navigate a complex landscape of regulatory disputes and diplomatic tensions with the US. Notably, tech giants in Silicon Valley, including Meta, have challenged EU regulations governing AI, arguing that they inhibit innovation. The Trump administration’s influence has been evident, with some US officials advocating for less stringent regulations while also pressuring the EU to reconsider enforcement of its digital rules.
At a more strategic level, the EU and US have also initiated a joint AI research project with a 60-day timeline to develop ethical guidelines for AI applications. This collaboration is designed to harmonise innovation strategies, particularly in light of the recent rapid advancements in generative AI technologies.
As the landscape for AI continues to evolve rapidly, these discussions will likely shape not only the future of transatlantic relations but also the broader global marketplace and its ongoing competition with China. The actions taken now could represent a crucial pivot point in determining how AI innovation is regulated and driven across international lines, emphasizing the necessity for cooperation in a rapidly changing technological environment.
Reference Map:
- Paragraph 1 – [[1]](https://www.euractiv.com/section/economy-jobs/news/eu-pitches-ai-collaboration-with-us-to-avert-full-scale-trade-war/)
- Paragraph 2 – [[1]](https://www.euractiv.com/section/economy-jobs/news/eu-pitches-ai-collaboration-with-us-to-avert-full-scale-trade-war/), [[3]](https://www.axios.com/2023/03/01/ai-research-us-eu)
- Paragraph 3 – [[1]](https://www.euractiv.com/section/economy-jobs/news/eu-pitches-ai-collaboration-with-us-to-avert-full-scale-trade-war/), [[2]](https://www.ft.com/content/3e75c36e-d29e-40ca-b2f1-74320e6b781f)
- Paragraph 4 – [[1]](https://www.euractiv.com/section/economy-jobs/news/eu-pitches-ai-collaboration-with-us-to-avert-full-scale-trade-war/), [[4]](https://www.ft.com/content/7303e57e-67ca-477a-8d00-8d5213f7120c)
- Paragraph 5 – [[5]](https://www.ft.com/content/47396d69-bd47-4c1f-bbb9-387da57163b1), [[6]](https://en.wikipedia.org/wiki/Trade_and_Technology_Council)
Source: Noah Wire Services
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