Executive Summary
This paper analyzes the evolving dynamics of EU-China relations, focusing on how economic statecraft has shaped policy changes. Both the EU and China increasingly use economic tools to achieve foreign policy objectives, driven by security concerns. This has led to a cycle of measures aimed at improving economic resilience and political control for both partners.
Why It Matters
This document is crucial for defense and geopolitical analysts as it details how economic tools are increasingly weaponized by major powers like the EU and China to achieve strategic foreign policy and security objectives, impacting global stability and supply chains.
Key Takeaways
- Economic statecraft, defined as using economic tools for foreign policy, is central to EU-China relations, evolving from engagement to competition.
- Both the EU and China have undergone a "securitization turn," prioritizing national security in economic policy, leading to defensive and offensive measures.
- The EU's "de-risking" strategy and China's Belt and Road Initiative exemplify structural economic statecraft aimed at reducing dependencies and expanding influence, respectively.
Strategic Relevance
The analysis of economic statecraft in EU-China relations highlights the shift from economic interdependence to strategic competition, where economic tools are leveraged for national security and geopolitical influence. This impacts global supply chains, technological competition, and the balance of power.