China has long put severe limits on Western companies doing business in China for strategic purposes, to grow domestic equivalents, and to aid industrial espionage.

And yes, all the western companies find that doing business in China is worth it despite the restrictions and requirements for technology transfer. This is something companies doing business in China explicitly agree to.

As China continues to grow but does not open up, should Europe not look out for its own security interests?

Why does China have to open anything up. The model they offer is already mutually beneficial. Being able to produce things cheaply in China is looking after European interests. That's what facilitates the living of standard people in Europe enjoy.

After all, Europe ignoring the US’s warnings about relying too much on cheap Russian energy is part of the reason that Europe is in dire straits now.

No, what put Europe in dire straights was going along with US sanctions against Russia. You have an uncanny talent for turning black into white my friend.