In a recent government meeting, experts discussed the complexities of \"derisking\" from the Chinese economy within the European context. Dr. Vohach highlighted the ambiguity surrounding the term, noting that with 27 member states, perceptions of risk vary significantly. He pointed out that Europe is lagging behind the United States in terms of decoupling from China, particularly concerning dual-use technology and critical supplies. He emphasized the need for U.S. leadership to help steer the conversation forward.

Dr. Karasgova added that recent customs data from 2018 to 2023 indicates that European countries have maintained or even increased their dependency on China. She noted that the derisking strategy, which began last year, may not yield immediate results, with more significant changes expected in data from 2024 onwards. However, she expressed skepticism about the effectiveness of the strategy, citing that some German businesses interpret derisking as an opportunity to deepen ties with China rather than reduce them.

When asked about the potential impact of the newly elected European Commission on derisking policies, Dr. Karasgova suggested that while there is a strong push for derisking, the actual outcomes will depend on how economies respond to ongoing challenges such as inflation and energy shocks. She also mentioned the influence of far-right parties in some European governments, which may have differing views on China and Russia, potentially complicating the derisking efforts.