Sponsored by the USC Center for International Studies and the USC U.S.-China Institute.
For decades, European countries assumed that China is a benign force in international relations. European governments are revising their perceptions of China. The Russian invasion in Ukraine has further fueled the skepticism towards deep co-operation with China.
Europe's companies have become more cautious and are no longer as eager to do business in China as in the past. Three factors ought to be considered: First, China has become too expensive due to the relatively high level of wages. Second, the new economic policies of the Communist Party emphasize domestic production and show China returning to an inward looking economic policy. Third, the disruption of supply chains has alerted managers. The high cost of shipping has at least temporarily eroded the cost advantage China used to have.
European countries are working to define their position in the new geopolitical climate. Whereas before the war in Ukraine there was a tendency to muddle through and avoid policies that could be considered hostile by Beijing, the mood has swung towards a more self-confident approach.
Heribert Dieter is a senior fellow at the German Institute for International and Security Affairs, Berlin and visiting professor for International Political Economy at Zeppelin University, Lake Constance.
For more information: https://china.usc.edu/calendar/heribert-dieter-europe-and-china-and-changing-geopolitical-environment