Global China and European derisking

Emeritus Professor Jeffrey Henderson explains the key factors behind the outstanding growth performance of the Chinese economy in the past 40 years. He opines that this era of rapid growth seems to be coming to an end, but the systemic rivalry between China and the USA remains a dominant issue in the period ahead.

The position Europe takes in regard to this rivalry will be decisive for our global future. The volume and nature of Chinese investment and the methods applied to access natural resources and acquire advanced technology justify a derisking strategy on the side of the European Union. However, it is important to view this global economic competition without racist undertones. While facing competitive pressures, Europe should avoid the blind alley of military confrontation and look for opportunities to learn and build productive cooperation as well.