#1 out of 3
politics11h ago
Can the EU de-risk from China and make its trade sustainable?
- The EU says it will de-risk from China rather than pursue decoupling, aiming to shield strategic sectors while keeping trade flowing.
- EU leaders highlighted that current trade and investment ties are not sustainable and need resilience-building policies.
- Analysts note China’s control over key inputs, like rare earths and polysilicon, complicating Europe’s supply security.
- Experts say de-risking will require substantial capital and political will across EU member states.
- EU policy instruments, including the 2023 Chips Act and 2024 Critical Raw Materials Act, support reshoring and supply security.
- EU fears Chinese restraints could threaten industrial sectors like EVs, batteries, and solar.
- Experts warn de-risking could raise costs for European manufacturers and consumers due to reconfiguration.
- Beijing could respond with export controls or pressure, complicating EU-China ties.
- The EU aims to keep strategic trade with China while reducing exposure to risk in critical supply chains.
- The debate reflects Europe’s shift from relying on efficiency to prioritizing resilience in critical markets.
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