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The risks of ‘de-risking’ economic links with China
The impact goes far beyond China, the US and the EU
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With so many countries normalising non-market practices in the name of “de-risking”, the incentives to conduct trade by WTO rules have been eroded.
PHOTO: REUTERS
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As geopolitical tensions between China on the one side and the United States and the European Union on the other have intensified, there has been growing talk of a “decoupling” of the economies and technology systems between the two – of a fragmentation into separate trade blocs and technology systems and even a “Splinternet”.
But recently, the rhetoric has changed. The new buzzword in diplo-speak is “de-risking”. This sounds more benign than “decoupling”, which suggests a sharper break in economic relations.
