The European Commission will today present its strategy to address identified risks to the European Union’s economic security, with a particular focus on the challenges represented by China. The EU has become aware of its dependence on Russian energy following Russia’s invasion of Ukraine last year, prompting the bloc to seek a new direction.
The Commission’s “Economic Security Strategy” aims to establish an autonomous approach to China and strike a balance between maintaining economic ties and avoiding dependence. Although the Commission has not directly described this strategy as a response to China, the EU has taken a number of steps to challenge the Asian giant’s growing economic power.
The Commission’s strategy will identify economic risks to the EU and solutions to address them, as well as existing measures, although there is no consensus yet. Some EU countries want to avoid a potential trade war with China, while others argue that now is the time to act to protect the bloc’s economic security.
The Commission has already announced plans to boost clean-tech production in Europe, including critical raw materials needed to make electrical products. Commission President Ursula von der Leyen has emphasized that it is about de-risking the relationship with China rather than disengaging completely, as the EU needs to trade with China.
However, there have also been calls for caution in how the EU deals with these risks. BusinessEurope, the EU’s main business lobby group, has urged the bloc to carefully consider European interests and competitiveness before imposing additional restrictions on exports and investment flows. It stresses the importance of finding the right balance between protecting security interests and creating a favorable environment for trade and investment.
EU leaders will discuss these plans at a summit in Brussels next week.