Posts tagged de-risk
Walking on eggshells: The twin transition and Europe’s quest to de-risk from China

The COVID-19 pandemic and the Russian invasion of Ukraine have shed light on Europe’s dependencies in critical sectors such as healthcare and energy. While Europe has been successful in reducing its energy dependency towards Russia, dependencies towards China remain considerable. De-risking from China will be challenging amidst a digital and green transition which will require raw materials and cleaner energy. Yet de-risking will be crucial for the EU to avoid repeating mistakes from the past and to increase Europe’s resilience against foreign interference. In this context, it is vital to examine how the EU should de-risk from China, how it should counter Chinese influence in third countries and in Europe, and how it should increase its own engagement in countries that are central for the twin transition. On the basis of an analysis, following recommendations can be made.

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