Weaponise EU market against China or face manufacturing collapse: official think tank
A new report suggests that the EU should leverage its market power to negotiate concessions from a fragile Chinese economy.
A report from the European Union Institute for Security Studies (EUISS) emphasizes that the European Union can utilize its significant market influence to extract concessions from China, which is currently experiencing economic vulnerabilities. Researchers argue that as China becomes more dependent on export markets, especially with the narrowing opportunities in the United States, Europe presents a crucial and relatively open market for Chinese goods and technology. The report highlights that this situation has created advantageous chokepoints that the EU could exploit in negotiations with Beijing.
Moreover, the EUISS stresses that Europe has been slow to acknowledge its potential leverage over China, which could allow for more assertive economic diplomacy. By capitalizing on China's growing dependence on European markets, the EU could formulate strategies that not only safeguard its own economic interests but also compel Beijing to engage more flexibly in negotiations over trade and technology transfer. The researchers assert that the time is ripe for the EU to act decisively to position itself advantageously against Chinaβs economic challenges.
This call to action comes as the geopolitical landscape shifts, with the U.S. tightening its trade policies against China, leaving Europe as a primary player in the international market. The report not only calls attention to the need for a stronger EU stance but also implicitly warns of the risks of inaction, suggesting that Europe could miss an opportunity for significant leverage, which might lead to reduced influence in future global trade discussions and collaborations with China.