Industry Dependency Risk Assessment and Realistic Policies

Authors

• Sandkamp
• A.

Publication Date

DOI

10.53121/ELFS7

JEL Classification

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This chapter evaluates the evolving trade dynamics between the EU and China against increasing geopolitical tensions worldwide. It scrutinises the EU’s strategic pivot from decoupling to de-risking in response to multifaceted challenges, including Taiwan, the Ukrainian conflict, and human rights issues. The focus centres on attenuating the EU’s dependency on China, particularly in essential sectors and procurement of critical raw materials. It recommends incentivising diversification by reducing trade costs with other potential source countries, highlighting that increased trade with other countries would both reduce dependence on China and strengthen the EU’s geopolitical position in the world.

Kiel Institute Expert