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

Abstract

In March 2023 European Commission President Ursula von der Leyen presented the term ‘de-risking’ in the context of the EU’s future engagement with China. This article examines how Europe should de-risk from China, scrutinising some of the European policies, actions and challenges behind this term and the newly launched European Economic Security Strategy. The article also examines how the EU should counter Chinese activities and narratives, in third countries as well as in Europe, while increasing its own engagement in countries which are crucial for the EU’s (twin) digital and green transitions. The article concludes that the EU should (1) fully implement its current trade instruments before creating new ones; (2) develop a comprehensive method and clear criteria for a common and holistic risk assessment of China; (3) communicate its goals in a transparent manner, especially to those countries and partners which are needed for the twin transition; and (4) refocus its financial instruments to develop concrete meaningful projects in these key countries, either bilaterally or together with other like-minded countries.