SGGP
Faced with the growing threat of economic dependence, many Western countries have begun to emphasize the need to mitigate risks in their relations with China.
 |
| French Minister of Economy and Finance Bruno Le Maire at a press conference in Beijing. Photo: Lemonde |
Concluding his visit to China on July 31, French Economy Minister Bruno Le Maire emphasized France's desire for greater economic independence in certain areas. According to Minister Le Maire, the concept of "risk mitigation," prevalent in many Western countries in recent months, does not mean China is a risk, but rather that France and the West in general want greater independence to avoid dependence on specific products, as was experienced during the Covid-19 pandemic.
Mr. Le Maire completely rejected a trend that has been raised in recent years: the need to decouple (i.e., sever ties) with the Chinese economy. He stated that decoupled is merely an "illusion" and that "it is impossible to sever all ties between the US, European, and Chinese economies."
France's stance is not unique. Previously, Germany – a country with China as its main trading partner and also an important automotive market for Berlin – had indicated its desire to diversify its partners to "minimize the risks" of over-reliance on China. Other Western countries share similar views.
In addition, Italian Prime Minister Giorgia Meloni stated that the government is considering the Belt and Road Initiative, which Italy signed with China in 2019. When agreeing to participate in China's initiative, then-Italian Prime Minister Giuseppe Conte hoped the agreement would boost the country's economy. However, according to Reuters, over the past four years, the agreement has not yielded the desired benefits, with Italian exports to China increasing only slightly, while Chinese exports to Italy have surged.
The U.S. also supports a more decisive approach to reducing risks in its economic relationship with China. In a statement last April, White House National Security Advisor Jake Sullivan explained that, essentially, “risk reduction” means maintaining long-term supply lines to avoid dependence on any single country.
Source
Comment (0)