The European Union faces an extremely difficult task in its attempts to limit its long-standing economic ties with Beijing.
According to a detailed analysis by Bloomberg, supply chains in critical sectors for the future are so deeply integrated with the Chinese market that their rapid redirection to other regions is practically impossible.
Experts point out that sectors such as green energy, lithium-ion battery production and the supply of rare earth elements are almost entirely monopolized by China.
Brussels representatives emphasize that the risk reduction strategy (the so-called “de-risking“) requires trillions of euros of new investment and decades of planning, not a sudden break in trade ties.
The Bloomberg report also notes that possible hasty political decisions could lead to severe shocks for European industry and a sharp jump in inflation, which forces European leaders to act extremely cautiously in their economic diplomacy.