Clued-in | So-called 'de-risking' approach cannot resolve Europe's industrial challenges

In recent years, the European Union (EU) has, on the one hand, emphasized its commitment to the multilateral trading system and opposition to protectionism, while on the other introduced an increasing number of discriminatory and exclusionary policy measures.

From launching an anti-subsidy probe into Chinese electric vehicles and imposing additional tariffs, to tightening foreign subsidy reviews, public procurement restrictions, and supply chain security scrutiny, and now advancing revisions to its Cybersecurity Act and the proposed Industrial Accelerator Act, the EU's economic and trade policy toward China has taken on a noticeably more defensive tone.

Such measures not only run counter to the WTO principles of non-discrimination and fair competition, but also undermine Europe's long-standing image as an open market.

China-EU economic and trade relations have long maintained steady growth. The EU has remained China's second-largest trading partner for many consecutive years, while China is a key trading partner and major source of investment for the EU.

In recent years, Chinese companies have continued to expand investment across Europe in sectors including new energy vehicles, batteries, photovoltaics, information and communications technology, equipment manufacturing, logistics and transportation, green energy, and financial services. These investments have created jobs and generated tax revenue while supporting Europe's green transition, digital transformation, and industrial upgrading.

Yet as the EU increasingly embraces narratives centered on "strategic autonomy," "economic security," and "de-risking," its business environment is gradually shifting from a market-driven approach to a security-driven one, with openness, fairness, and predictability all showing signs of erosion.

The EU is currently facing structural challenges, including declining industrial competitiveness, high energy costs, insufficient investment, and sluggish innovation. These issues stem from long-standing shortcomings in Europe's own economic governance and industrial policies. Blaming Chinese companies for these problems and portraying external competitors as risks will do little to address Europe's industrial challenges. On the contrary, protectionism may weaken incentives for reform, resulting in higher prices, fewer choices, and slower innovation.

Whether "de-risking" truly serves the interests of European businesses has already been answered by the market. According to a survey by the EU Chamber of Commerce in China, 68 percent of European companies are staying or expanding their operations in China. Nearly one-third are onshoring further in China.

This suggests that "de-risking" has not become the practical choice for European businesses and that the Chinese market remains a vital platform for enhancing global competitiveness.

The fact that more and more European companies are choosing to deepen their presence in China and expand their business here is in itself the most powerful rebuttal to the so-called "de-risking" narrative, Chinese foreign ministry spokesperson Mao Ning said.

The essence of China-EU economic and trade relations lies in complementarity and mutual benefit. Over the past more than five decades, annual trade between China and the EU has grown more than 300-fold, while two-way investment stock has approached $260 billion.

China brings a vast market, a complete industrial system, and rapidly growing innovation capabilities, while Europe offers advanced technologies, globally recognized brands, sophisticated manufacturing expertise, and leadership in green governance. Deepening cooperation not only advances the prosperity of both sides, but also helps strengthen the resilience and stability of global industrial and supply chains.

At a time of sluggish global economic recovery, rising unilateralism and protectionism, and growing uncertainty in global industrial and supply chains, China and the EU, two major economies, should remain committed to openness and cooperation and uphold the rules-based multilateral trading system. If the EU truly pursues "strategic autonomy," it should not equate autonomy with exclusion, nor mistake competition for a threat.

The more complex the global landscape becomes, the more important it is for China and the EU to maintain strategic focus. Treating partners as risks only deepens mistrust, while politicizing normal market competition undermines shared interests. The EU should return to the path of openness, cooperation, and fair competition, replacing political labels such as "de-risking" with more pragmatic and rational choices. Only then can China and the EU jointly safeguard the stability of global industrial and supply chains and provide greater certainty for growth and green transition of the world.