Europe's trade strategy with China: De-risking or reducing opportunities?

Brussels is preparing to tighten its trade policies with China through anti-dumping and anti-subsidy instruments, scrutiny of foreign public support in mergers and public procurement, and making supply chain security a condition for market access. Five states—France, Italy, Spain, Netherlands, and Lithuania—are advocating for faster and broader tools, though Germany's absence from this call is notable. European concerns stem from sluggish growth, deindustrialization, and high deficits. However, the Draghi report, commissioned by the European Commission, attributes these issues primarily to internal factors such as innovation delays, prohibitive energy costs since 2022, and a fragmented capital market. The report suggests that these problems cannot be solved by tariffs and highlights an annual investment gap of approximately 800 billion euros. The automotive sector illustrates this, with divided votes on tariffs for Chinese electric vehicles, and Brussels later considering minimum prices. The European business community's perspective differs from Brussels, with a 2025 German Chamber of Commerce in China report indicating that 92% of German companies plan to maintain their presence in the Chinese market, and over half intend to increase investments in the next two years. European chambers of commerce have also warned that excessive focus on supply chain security could increase costs and weaken competitiveness. The article argues that while "de-risking" is legitimate, a protecti