• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

What To Expect When Quitting Alcohol

March 6, 2026

US Lost Jobs In February, Showing Weaker Economy Than Expected

March 6, 2026

110 Funny Anniversary Quotes and Messages That Will Make You Laugh

March 6, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Saturday, March 7
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    US Lost Jobs In February, Showing Weaker Economy Than Expected

    March 6, 2026

    Trump Cuts Off Trade To Spain After Nation Bucked US On Iran War

    March 3, 2026

    Ford Recalls Over 4,000,000 Vehicles For Software Glitch

    February 26, 2026

    Jamieson Greer Says Trump Still Has ‘Very Durable Tools’ For Tariffs, Trade Deals

    February 22, 2026

    Scott Bessent Lays Out Future Of Trump’s Tariffs, Trade Deals

    February 22, 2026
  • Finance

    How Long Can Kyrgyzstan’s Economic Boom Keep Booming?

    February 18, 2026

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»What ‘De-risking’ Means for China
Finance

What ‘De-risking’ Means for China

May 27, 2023No Comments7 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Diversification Isn’t Enough to Cure Europe’s Economic Dependence on China
Share
Facebook Twitter LinkedIn Pinterest Email
Advertisement

There was much for Beijing to dislike in the publicly-announced results of the G-7 Summit held in Hiroshima from May 19 to 21. In addition to taking strategic and political positions adverse to China, the leaders of Germany, France, Italy, Japan, Canada, the United Kingdom, the United States, and the European Union jointly affirmed their support for economic “de-risking” in their economic cooperation with China.

Beijing’s reaction to the G-7 meeting suggests it sees the industrialized democracies moving closer to supporting what the Chinese call a U.S.-led effort to “contain” China.  That oversimplified perception has several important and negative ramifications for China.

Chinese officials and commentators have recently courted Europe vigorously, imploring European countries to distance themselves from the United States, and specifically to stay out of the alleged U.S. containment campaign. The basic pitch has been that Europeans should beware of a self-interested United States using them as “puppets” to the detriment of their own interests. This framing made Washington the enemy as China extended an open hand to Europe.

Despite Chinese efforts, however, the trendlines are disappointing from Beijing’s standpoint.  In early 2023, European countries moved toward implementing restrictions on investing in China, exporting semiconductors to China, and allowing China to compete in the European renewable energy market.

Chinese opinion toward Western Europe has noticeably hardened, moving toward equating de-risking with containment. Wang Lutong, Ministry of Foreign Affairs’ director general for European Affairs, complained on May 10 that “Europe gives [China] a stab in the back… bullying China on economic issues.”  A May 11 editorial in the state-owned Global Times lamented Europe’s “submission and dependence on Washington’s comprehensive containment strategy against China.”

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

From Beijing’s standpoint, the G-7 outcome indicated a continuation, perhaps even an acceleration, of the negative trend. Hence China’s Foreign Ministry on May 20 accused the G-7 of “containing” China. A Xinhua News Agency commentator followed up on May 25 that “the G7 interprets its own ‘risk’ as only induced by China, or in other words, only by containing China can it get rid of the risk.”

See also  China’s Market Frenzy: Will the Euphoria Last or Fade Fast?

This is despite the fact that the communique from the G-7 meeting specified that the group does not favor containment: “Our policy approaches are not designed to harm China nor do we seek to thwart China’s economic progress and development.”

Beijing seems unable or unwilling to grasp the very different lineages of “containment” and de-risking.

Advertisement

Containment is associated with U.S. policy toward the Soviet Union during the Cold War. It included political and military efforts to prevent (presumably Soviet-controlled) Communist parties from taking over additional countries. The economic aspect was a broad embargo against doing business with the Soviet Union. Most Chinese think containment is the current U.S. policy toward China, and believe the intention is to suppress the growth of China’s economic power and international influence so as to preserve Washington’s dominant position in the Asia-Pacific region.

Xi Jinping says the United States is practicing “comprehensive containment” and “all-around containment, encirclement, and suppression of China.” Other Chinese officials say the U.S. is “seeking to suppress China through all possible means.” These are gross exaggerations. In its trade with the United States in 2022, China was the beneficiary of a nearly $400 billion surplus. Washington did nothing substantial to stop China from building military bases in the South China Sea. U.S. universities still train thousands of Chinese students annually in the STEM fields.

U.S. policy toward China today is essentially an enlargement of the arms embargo of 1989 – imposed in retaliation for the Tiananmen Massacre – to include restrictions on certain forms of high technology transfers, such as semiconductors. The approach is not unreasonable given that China is now the United States’ strongest and most likely potential adversary. Indeed, China is itself also engaged in economic decoupling from the United States in a few key sectors.

See also  Can I Retire at 60 With $300,000?

While containment is a strategy by a great power to thwart a challenge by another great power for international strategic leadership, de-risking is wholly different, with more modest and defensive aims. Use of this term in the context of economic relations with China is credited to a speech by European Commission President Ursula von der Leyen in March 2023.

Europe does not seek strategic leadership in the Asia-Pacific region and has no hegemonic position to defend. The Europeans will trade with the region regardless of which regional country is strongest. Rather, the aim of de-risking is to avoid over-dependence on a potentially problematic supplier. China has placed itself in that category through its recent behavior.

The Chinese government now routinely uses its economic leverage to punish trading partners over political disputes. Australia’s case is illustrative. Already angry at Australia for taking steps to root out Chinese Communist Party interference in Australian politics, Beijing abruptly restricted imports of several Australian products after Canberra called on the World Health Organization to investigate the origins of the COVID-19 pandemic. European countries have suffered similar economic coercion from China.

A related problem is the nature of China’s political system. The government is insecure due to the lack of a popular electoral mandate for perpetual one-party rule and the need to uphold the Xi Jinping personality cult. At the same time, the overwhelmingly strong state can impose sudden and draconian policies that may disrupt the flow of supply chains that pass through China.

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

The all-important need of the Chinese Communist Party to save face combined with its massive powers of control over society led to the persistence of lockdowns into 2022, delaying China’s return to full productivity and contributing to shortages and inflation worldwide. China’s internal politics now seems to be pushing the country toward a war over Taiwan, which would interrupt much of China’s international commerce for an indefinite period.

See also  Taiwan’s Surprising Drop in Trade Dependence on Mainland China

In other words, Europe has ample justification for reducing its reliance on Chinese supplies out of self-defense, even completely absent any interest in suppressing China’s economic development. China’s inability to see the difference between “containment” and “de-risking” is a side effect of its refusal to engage in the introspection of its own behavior, which would be a necessary step toward remolding European policies.

Now that U.S. officials have embraced the term “de-risking,” the United States and the Western European countries have found a unifying formula for a more coordinated China policy. Policy adjustments by the world’s leading economies aimed at decreasing reliance on Chinese suppliers will go a long way toward partial containment of Beijing’s influence. This is a win for the United States’ grand strategy and a loss for China’s.

Advertisement

The G-7 Communique is further evidence that China’s efforts to divide Western Europe from the United States are not succeeding. Factors such as China’s counterproductive “wolf warrior” diplomacy, human rights issues, the Ukraine War, and anxieties about China’s bellicose signals toward Taiwan create ill-will in Europe that exceeds European annoyance with the United States.

China’s long-term opportunity to reap benefits from its economic relationship with Europe is at stake. The Comprehensive Agreement on Investment between China and the European Union, originally accepted by both sides in 2020 over U.S. objections, now appears dead. Europe is also increasingly likely to retaliate strongly against China over an attack on Taiwan.

Beijing’s conflation of de-risking and containment is another instance of Beijing’s lack of strategic empathy. China’s political milieu allows little place for the idea that other countries may justifiably see some of China’s policies as troublesome or threatening. Much of the containment that Beijing perceives is self-inflicted.

China derisking Means
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

How Long Can Kyrgyzstan’s Economic Boom Keep Booming?

February 18, 2026

What Mental Health Really Means (And Why It’s More Than “Being Happy”)

January 9, 2026

China Brushes Off Trump Tariffs With Jaw-Dropping $1 Trillion Surplus

December 8, 2025

Is China Already Stabbing Trump In Back On Recent Trade Deal?

November 13, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

WNBA’s Brittney Griner Says Banning Biological Men from Playing Against Women is a ‘Crime’

May 1, 2023

Phage Therapy To Defeat Superbugs Is Taking Off

September 13, 2023

Woke Reich Adds Trigger Warnings to Ernest Hemingway Novels

June 30, 2023

Biden Admin. ‘Slow in Picking up on’ East Palestine Issue, Buttigieg Took Forever to Mention an Issue in ‘His Portfolio’

February 25, 2023
Don't Miss

What To Expect When Quitting Alcohol

Lifestyle March 6, 2026

Quitting alcohol may not be the hardest thing a person does, but it will not…

US Lost Jobs In February, Showing Weaker Economy Than Expected

March 6, 2026

110 Funny Anniversary Quotes and Messages That Will Make You Laugh

March 6, 2026

Trump Cuts Off Trade To Spain After Nation Bucked US On Iran War

March 3, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,307)
  • Entertainment (4,220)
  • Finance (3,203)
  • Health (1,938)
  • Lifestyle (1,840)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Wagner Boss Hints at ‘Betrayal’ as Russian Mercs Run Short of Ammo

March 11, 2023

Major US Automakers Duke It Out Over Biden Admin’s EV Tax Credits

September 28, 2023

Gov’t Admits Millions of Unemployed People Were Not Counted in Latest Job Stats | The Gateway Pundit

August 1, 2023
Popular Posts

What To Expect When Quitting Alcohol

March 6, 2026

US Lost Jobs In February, Showing Weaker Economy Than Expected

March 6, 2026

110 Funny Anniversary Quotes and Messages That Will Make You Laugh

March 6, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.