Siemens chief executive Roland Busch has warned that rising geopolitical frictions and widening technology barriers could fracture the digital economy into rival blocs, creating what he described as a “digital iron curtain” that would slow trade, complicate industrial co-operation and weaken innovation.
Busch argued that the global economy is already moving away from the highly integrated model that defined the past three decades. In his view, companies are increasi...
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ngly being forced to balance efficiency with resilience as supply chains are reshaped by conflict, export restrictions and demands for data localisation. Rather than abandoning globalisation altogether, he suggested the world is heading towards a more regionalised form of trade in which access to markets and technology will depend increasingly on political alignment.
At the centre of his warning is the belief that industrial production in the digital era depends on the free movement of software, data and artificial intelligence. Busch said these tools are inherently cross-border and that attempts to isolate them risk undermining competitiveness. He pointed to co-operation between Europe and Japan in the automotive sector as an example of how different regulatory systems can still be made to work together through common standards and interoperability.
The Siemens chief urged Europe to position itself as a bridge between major economic blocs, arguing that the continent should strengthen the single market for digital goods and services and make interoperability a priority in economic diplomacy. He also called for deeper digital trade links with economies in the Asia-Pacific region, saying a connected world cannot be built by one side alone.
His intervention comes amid a broader debate over Europe’s approach to artificial intelligence and digital regulation. According to Bloomberg, Busch has separately warned that the European Union’s AI Act and Data Act could discourage investment, saying Siemens intends to direct most of its €1 billion industrial AI spending to the United States. Other reports have quoted him as saying the bloc risks falling behind if it treats industrial AI in the same way as consumer-facing products.
Yet Busch has not argued against global trade itself. In remarks reported by German technology publication CIO, he said the old patterns of success may no longer work and that manufacturers must think more carefully about where they invest and how much value they create locally. Still, he insisted that global trade remains essential, rather than obsolete.
His message reflects a broader tension for European industry: how to preserve openness while responding to security concerns, industrial policy and the growing rivalry between the United States and China. For Busch, the answer lies not in retreat, but in making digital systems more interoperable and keeping trade channels open enough for the industrial economy to remain connected.
Source: Noah Wire Services
