A Tale Of Broadening Terms In Defense Industry And Economic Security Presented by: Mr. Kovács Date: 13 June 2024 A Shift in the Global Order or Just Another Exception? - US pivot to Asia: China - Containment instead of engagement - Economic measures: • World Trade Organization - Dispute Settlement Understanding - Appellate Body • Trump Adm. Tariffs + CFIUS + Phase One Deal • Biden Adm. More Tariffs + Export Controls + Screening of Investments I/O Where Does The European Union Stand? - EU-wide investment screening, based on grounds of national security and public order - : 2017 SOTU, Jean-Claude Juncker: - "Let me say once and for all: • we are not naïve free traders" - National security? Wide margin of appreciation - National security, includes economic security - Includes defense industry EU Legal Provisions Protecting The Defence Industry - Numerous legal provisions → protection of national defense industries - Carve-outs are included in the Directives of the Defense Package, the Merger Regulation - Why the need? Why The Need For Further Protection? - What is national security? - Strategic assets - Strategic industries - Dual-use - Exception under Art. 346 TFEU not sufficient Securitization of… - Academia? - Data? • - Knowledge security • High technology • Technological security - Food - ...everything? - Securitization everywhere - Xi Jinping: "Only by mastering crucial core technologies with our own hands can we fundamentally safeguard our national economic security, national security, and security in other areas." Geoeconomic World Order - Interdependence or independence? - A calibration exercise rather than a definitive choice