Asia and Europe are at the forefront of global technological advancement, each leveraging distinct strengths across a broad spectrum of areas. Asia’s tech spending market, which is set to reach USD 1.4 trillion in 2025, is a global innovation engine—leading in AI development, digital infrastructure and cloud technologies. Countries like China, India, Japan and Singapore are driving advancements while embracing sustainability-focused solutions. Yet, the region as a whole faces challenges for integrated economic growth and climate action, due to its fragmented policies and wide differences among the countries in the levels of technological capacity, regulatory policies, industry structures and behaviour patterns. In contrast, Europe’s mature regulatory framework—including the EU’s AI Act and GDPR—supports robust data governance and sustainability, with 40% of energy sourced from renewables. Europe leads in deep tech areas like quantum computing and neuromorphic chips, but faces talent shortages and dependence on foreign technology.
Both regions share common challenges, including cybersecurity threats, data privacy concerns and the regulation of large and dominant platforms with monopolistic trends across multiple sectors. They can benefit from cooperation to support effective digitalisation, such as through initiatives like the ASEAN-EU Dialogue on Science and Technology and various Digital Economy Agreements (DEAs), including the UK-Singapore DEA and the EFTA-Singapore DEA. These agreements go beyond traditional trade deals to also promote regulatory reform, interoperability and secure cross-border data flows. By strengthening digital trust, improving cybersecurity and supporting inclusive innovation, they particularly benefit small and medium-sized enterprises while fostering fair competition and economies of scale.
ASEF, on our part, has established the AE4AI Network under ASEF InnoLab programme to promote AI innovation via education, governance and ecosystem development. The theme of ‘AI and education’ in ASEF’s ASEFClassNet is also recognised by UNESCO for advancing AI competencies among teachers. Find out more about the development and strategies of digital technology in Asia and Europe from our selection of articles.
Sources:
GITEX Asia (7 March 2025), ‘Asia’s Digital Revolution: Trends to Watch in 2025’, GITEX Asia
ESCAP (2024), ‘Asia-Pacific Digital Transformation Report 2024’ ESCAP
Michael Raska (20 June 2025), ‘CO25135 | Redefining Asia-Europe Security in a Multipolar World’ RSIS
I love how ASEM shines a light on digital development because it’s a huge part of how we move forward today. Digital development changes the game for communities, businesses, and governments by making technology easier to access, boosting efficiency, and sparking new ideas.
Nice topic for this month. As an Asian student, I think it’s really important to talk about digital development in Asia and Europe. Digital technology can help solve social and economic problems, close gaps between different groups, and support growth that includes everyone. Closing the digital divide between and within these regions also helps us reach global goals and build stronger, more inclusive communities.
I have noticed that China has mandated AI education for primary and secondary students. I believe AI will integrate into our daily lives more rapidly than we anticipate.
Absolutely! China’s move to mandate AI education for students is a forward-thinking step that will empower the next generation with crucial skills. Integrating AI knowledge early on is key to driving innovation and accelerating the country’s digital development. This sets a great example of preparing youth for the future tech-driven world.