Chinese foreign policy

Further research

published: 19.06.2023

Briefing notes: China-EU roller-coaster relations – where do we stand and what to do?

Alicia Garcia Herrero

Following an invitation to testify at the US Congress Europe Hearing on ”the United States, and Relations with China: Convergence or Divergence?”, Alicia García-Herrero provided an extensive written brief on the state of EU-China relations, especially in relation to economic ties, and what the EU and US can do to address the increasingly asymmetric economic dependence between EU/US and China.

In the brief, the author emphasises two major concerns for the EU (and US) related to their economic relations to China, namely (1) that of pursuing a strategy of derisking while at the same time not obstructing the goal to decarbonizing and (2) the need for the EU to accelerate its strengthening of trade and investment relations with other countries around the world.

To achieve these goals, Alicia García-Herrero advises the EU to not go unilaterally about their derisking and instead seek out coordinated specialization in which a number of like-minded countries would decide to pool resources and cooperate on critical raw materials and technologies for green energies. Furthermore, the EU should offer a clear signal that it is back for business, to which an impactful and logical step would be for the EU (and US) to join the UK in applying to join the CPTTP.

About authors

Alicia Garcia Herrero

Chief Economist for Asia Pacific at Natixis, Senior Fellow at Bruegel, Non-resident Senior Follow at the East Asian Institute, Adjunct Professor at the Hong Kong University of Science and Technology

Economist specialized in monetary and financial issues in emerging markets, banking crises and resolution strategies, financial development