FX.co ★ EU considers proactive steps to reduce reliance on China

Europe is beginning to realize what its dependence on close economic ties with China could deliver. The world’s second-largest economy is stepping up efforts to expand its influence across various regions, including the European Union. Some European countries have long noticed the harmful effects of trade relations with China and are now actively trying to find alternative supply options.

Europeans were taken aback by the forced rejection of Russian energy commodities. It took them quite a while to compensate for the shortfall. However, local authorities learn from their mistakes. This time, they want to be proactive, realizing that close economic relations with China pose a threat to the EU. "If you are bound too closely it can endanger yourself," German Foreign Minister Annalena Baerbock said, highlighting the need to reduce reliance on Chinese imports, as was the case with Russia.

According to experts, such a policy towards Beijing would help Europe strengthen its own sovereignty in various sectors of the economy. Earlier, European Commission President Ursula von der Leyen announced an anti-subsidy inquiry into low-cost electric cars coming from China. Their artificially low prices contributed to their spread in the European market, thereby violating the basic principles of market competition, she noted.