When dependence cuts both ways: Towards a realistic assessment of EU-China economic relations

In the shadow of the corona pandemic, governments around the world are rethinking economic relations with China. Partial decoupling between China and the US will continue also under a Biden administration, creating additional pressure on the EU to assess its strategic position. There is a growing realization that in this new landscape, deep interdependence with China comes with growing risks that could compromise European resilience and reduce its capacity to act strategically. And while the EU is reflecting on its vulnerabilities, China is accelerating its efforts towards greater economic and technological self-reliance.

In a recent publication, “Mapping and recalibrating Europe’s economic interdependence with China”, Max J. Zenglein, Chief Economist at MERICS, assesses the state of affairs in EU-China economic relations. In our online event he will present the key findings of this MERICS China Monitor. Two leaders that shape European economic relations with China on a daily base, Eva Valle Lagares and Wolfgang Niedermark, will comment on the results of the study and discuss economic interdependencies between the EU and China in terms of trade and investment, supply chains and R&D. The workshop will focus on the following questions: What are the most important risks and vulnerabilities from the perspective of business and political stakeholders? How to re-calibrate economic relations in light of growing political tensions and a continued lack of economic convergence? How should the EU deal with the new political risk landscape when doing business with China? How to make economic relations with China shock-proof in the face of Beijing’s doubling-down on self-reliance and strategically managed interdependence?

Our panelists are:

• Eva Valle Lagares, Head of Trade at the EU delegation to China
• Wolfgang Niedermark, Member of the Executive Board, BDI
• Max J. Zenglein, Chief Economist at MERICS

Claudia Wessling, Director Publications at MERICS, will moderate this event.