Nicolas Dufourcq, chief executive of France’s state-backed investment bank Bpifrance, has issued a stark warning that Europe is being “doubly colonized” — squeezed between China’s dominance in industrial supply chains and America’s overwhelming lead in technology.

Speaking at the International Private Equity Market (IPEM) conference in Paris, Dufourcq stressed that this is not a distant risk but a reality already shaping Europe’s economy and competitiveness. “The consequences are here, right now,” he told investors and executives, urging European policymakers and businesses to act with urgency.

Bpifrance’s Position and Role

Bpifrance, which manages roughly €100 billion ($117 billion) in assets, has long been at the heart of France’s strategy to support domestic industries and fuel innovation. The bank provides financing to startups, small businesses, and industrial firms across sectors ranging from biotech to aerospace.

Despite these efforts, Dufourcq argued that Europe remains highly vulnerable. China’s grip over manufacturing, rare earth minerals, and green energy supply chains is tightening, while U.S. tech giants continue to dominate digital infrastructure, artificial intelligence, and cloud computing.

The Industrial Squeeze

China’s industrial machine has expanded rapidly, with Europe increasingly reliant on Chinese imports of solar panels, batteries, and electric vehicle components. According to trade data, more than 70% of the world’s solar panels and over 80% of rare earth processing are controlled by China, making Europe dependent on Beijing for its clean energy transition.

This reliance is compounded by Europe’s lag in scaling its own industrial champions. German carmakers, once global leaders, now face growing pressure from Chinese EV companies offering lower-cost alternatives.

America’s Digital Dominance

On the other side of the equation, the U.S. remains the undisputed leader in digital innovation. Tech giants like Apple, Microsoft, Google, and Amazon dominate Europe’s cloud services and AI research, leaving European firms struggling to catch up.

Cloud infrastructure in Europe is overwhelmingly controlled by U.S. players, with Amazon Web Services and Microsoft Azure holding a combined market share of more than 65% across the continent. This dependence raises concerns about data sovereignty and strategic autonomy, key issues for European regulators.

A Call for Strategic Action

Dufourcq emphasized that Europe must urgently invest in its own capabilities. He called for stronger industrial policies, greater collaboration between governments and the private sector, and a focus on creating “European champions” that can compete globally.

Initiatives like the European Chips Act, designed to boost semiconductor production, and investments in AI research are steps in the right direction, but experts argue the scale is still insufficient compared to the U.S. and China.

The Bigger Picture

The warning comes at a time when global competition is intensifying. The U.S. has rolled out massive subsidies for green energy and advanced manufacturing through the Inflation Reduction Act, while China continues to pour resources into state-backed industries. Without a coordinated European response, analysts warn that Europe risks becoming a “consumer continent” — dependent on others for both industrial goods and digital technologies.

Outlook

Dufourcq’s comments reflect a broader concern among European policymakers and investors: the continent risks falling behind in both industry and technology unless it accelerates its push for autonomy. For Europe, the choice is becoming clear — either build stronger domestic capabilities now or face long-term dependence on external powers.