China’s economic policy towards the European Union is subordinated to the pursuit of its political goals. Its actions are designed to increase the dependence of the EU’s member states on cooperation with China, thereby expanding its ability to influence these countries and the Union as a whole. The EU’s response may follow one of three models: full decoupling, derisking, or inaction. Decoupling involves an almost complete severance of ties with China, which would likely be very costly economically and socially for the Union, and therefore, is currently practically impossible. Derisking is the optimal scenario and involves targeted actions against unfair Chinese practices that threaten the EU in selected sectors. In the passive scenario, i.e., a weakening of the current actions taken on the initiative of the European Commission and some Member States, the EU risks progressive deindustrialisation, which will translate into political destabilisation.
Author: Piotr Dzierżanowski, Marcin Przychodniak.
