de-risking

The concept of 'de-risking' refers to the European Union's strategic effort to reduce its economic and political dependencies on China. This initiative is gaining prominence as the EU grapples with a significant trade deficit and persistent dependencies on China, which it labels as 'global macroeconomic imbalances'. Recent developments highlight the growing tensions, including the postponement of EU-China dialogues on digital matters, with talks abruptly cancelled by Beijing. This move underscores the current friction between the EU and China, impacting diplomatic and economic engagements. The EU's focus on de-risking is driven by a desire to bolster its own resilience and autonomy in the face of geopolitical shifts and economic vulnerabilities. It signifies a shift in the EU's approach towards China, moving away from a purely engagement-focused strategy towards one that prioritizes strategic autonomy and risk mitigation.