Search

Begin New Search Political Geography China Author Guntram Wolff

1. China “De-risking”: A Long Way from Political Statements to Corporate Action

Author:
Ole Spillner and Guntram Wolff
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Major Western leaders have been calling for “de-risking” from China, rather than “decoupling.” But what exactly de-risking means and how it differs from decoupling, remains unclear. It is ultimately firms, not governments, driving trade and investment relations. But firms cannot account for unidentified risks by themselves. National security risks are for governments to define. Complex supply chain externalities might entail risks to production that are also difficult for firms to account for. Furthermore, firms may bet that governments will rescue them if a worst-case scenario happens, effectively socializing risks. In the EU, Germany is particularly exposed to China risk in terms of security, macroeconomic, and political exposure.
Topic:
Security, European Union, Macroeconomics, Supply Chains, and Geoeconomics
Political Geography:
China, Europe, and Asia

2. Managing Risks in the EU-China Economic Relationship

Author:
Claudia Schmucker and Guntram Wolff
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
As the German Chancellor heads to Beijing – the first visit by a G7 leader since the pandemic began, Germany and the EU must reevaluate their approach to China, especially after the recent Communist Party Congress further cemented a system of uncontested authoritarian power. European unity is critical in dealing with China. Russia’s war in Ukraine has exposed Germany’s energy dependency and many Western companies have had to leave Russia. To be prepared for a possible escalation of geopolitical tensions with China, Germany needs to draw lessons and review critical dependencies and corporate risks. Better corporate risk management, a diversified trade policy, and a targeted industrial policy are necessary to manage economic risks.
Topic:
Bilateral Relations, European Union, Trade, and Geoeconomics
Political Geography:
China, Europe, and Asia