Europe must define its own China strategy to avoid decline
Europe needs to formulate a clear competitiveness agenda and policy aims for engaging with China, as Beijing actively seeks to influence the continent over the next two years using both incentives, such as a proposed trade agreement, and deterrents, including new legislation targeting companies that threaten Chinese interests. The European Union must leverage this pressure to finally decide its approach to China, or risk geopolitical irrelevance and economic decline. China, prioritizing stable and diversified supplies of energy, technology, and agricultural inputs, is avoiding taking sides amid global alliance shifts, notably between the Middle East and Indo-Pacific.
Key facts
- Beijing has a two-year window to influence Europe.
- China is using trade agreement proposals as carrots.
- China has new legislation to punish companies threatening its interests.
- Europe must decide its engagement strategy with China.
- Failure to act could lead to European geopolitical insignificance and economic decline.
- China prioritizes stable, diversified energy, technology, and agricultural supply chains.
- China is avoiding taking sides in global alliance recalibrations.
- The perceived recalibration of alliances spans from the Middle East to the Indo-Pacific.
Entities
Institutions
- European Union
- Brussels
- Beijing
- SCMP
Locations
- Europe
- China
- Middle East
- Indo-Pacific