Expanding Europe’s toolbox to address economic risks from Chinese state capitalism
The European Union (EU) and China have entered a new stage in their relationship. China now appears as a “systemic competitor” in assessments by major European business federations and EU institutions, and the EU Commission has launched a work program to assess ways to deal with the country’s economic impact on the EU. There is a growing belief across Europe that the balance of challenges and opportunities China presents has shifted, and that European policy-making needs to adapt to new long-term challenges arising from the competition between economic systems. This study explores how Europe could expand its toolbox to address those challenges.