EU digital sovereignty challenged by ASML’s China export ban

When the Netherlands barred ASML from exporting its most advanced chip‑lithography machines to China, the move exposed the limits of Europe’s digital sovereignty. The EU relies heavily on foreign technology and lacks a clear, binding definition of digital sovereignty, with more than 80 % of its digital economy built on non‑EU infrastructure.

The EU’s Cybersecurity Law 2 aims to restrict Chinese firms such as Huawei and ZTE in 18 sectors, but it does not create European alternatives. No public evidence shows Chinese equipment being used for state espionage in Europe, yet a KPMG‑CCCEU assessment forecasts massive costs – up to €146 billion in direct replacement, €81 billion in indirect reconstruction, plus additional social and legal expenses.