The European Union officially put forward on Wednesday its plan for slashing dependence on American and Asian technology, including favoring European firms in the most sensitive public contracts for cloud computing and AI.

The long-awaited "tech sovereignty" package is part of a raft of new EU rules aimed at boosting domestic manufacturing across different sectors, and catching up with rival companies in the U.S. and China.

But the plans risk further irking the United States, which has pushed back hard at the European Union's fines and rules in recent years against American tech companies.

The issue is existential for the EU since it is heavily reliant on foreign technology providers.

The European Commission said non-EU companies provide more than 80% of its digital products, services, infrastructure and intellectual property.