Siemens AG President and CEO Roland Busch recently warned in a written piece that escalating geopolitical tensions and technological barriers are threatening the global economy, potentially creating a "Digital Iron Curtain" that hinders trade and technological progress. He called on Europe to act as a bridge in complex international dynamics, advocating for digital interoperability and unified standards to safeguard the stability of global industrial and supply chains.
Over the past three decades, digital technology has profoundly reshaped the global economy, driving cross-border market connectivity. However, due to geopolitical frictions and global crises, companies are increasingly prioritizing supply chain resilience in their investment and production decisions, leading to a trend of regionalization in globalization. Busch pointed out that the growing technology gap, export controls, and barriers like data localization are reshaping the global industrial landscape. He emphasized that these new obstacles increase the difficulty of system interconnectivity and technology deployment. If this trend continues, digital borders could solidify into a "Digital Iron Curtain," severely hindering the exchange of ideas and economic cooperation across human societies.
Regarding industrial production in the digital age, Busch noted that software, data, and artificial intelligence have the inherent characteristics of being reusable and shareable across borders. Among the world's more than 200 "Lighthouse Factories," smart manufacturing models have boosted labor productivity by approximately 40% and cut production line adjustment times by nearly half. In this context, the business community is actively building cross-border technological connections, reducing barriers by establishing common standards or enhancing system interoperability. He cited the recent collaboration between Europe and Japan in the automotive industrial network as an example, demonstrating that achieving system interconnectivity while preserving respective architectures is a viable solution.
Facing the risk of global technological fragmentation, Busch believes Europe holds unique advantages. Instead of erecting new closed barriers, it should strive to become a trusted connector of global technology and data. He reiterated that Europe must make enhancing technological interoperability a strategic priority and continuously expand the single market for digital products and services to boost its international credibility and capabilities. Additionally, Busch suggested that Europe place interoperability at the core of its economic diplomacy agenda. He emphasized that an interconnected world cannot be built by one party alone; Europe should deepen digital trade partnerships with economies in the Asia-Pacific region, such as Japan and Australia, to explore new models for integrating different technology ecosystems. This would ensure that a regionalized global economy remains closely interconnected.
Comments