Tim Rühlig quoted in the South China Morning Post

China's rapid rise as a tech powerhouse has put Europe on the defensive, seeking to close the gap.

Tim Rühlig told the South China Morning Post that for too long, European firms believed their Chinese counterparts would only catch up by mimicking Western technology, underestimating their ability to innovate. "Today, nobody doubts China's innovativeness."

He added that China and Europe are now less complementary and rather compete over similar market segments, which is one of the reasons why EU-China relations are more complicated now.

He argued that China must recognise that Europe's open market has absorbed large volumes of heavily subsidised Chinese technology exports, which threaten the competitiveness of EU firms. "Unless China and Europe agree that this is a challenge to the relations, I am afraid that the EU will be frightened and therefore close its market," he said.

What could help? Voluntary price floors for Chinese technology and Europe improving the conditions at home for innovation.

"The point is not to decide whether the two sides are partners, competitors or rivals, but to explore how cooperation with a systemic rival is possible and what systemic rivalry means if you need to cooperate at the same time."