EU says it's already de-risking from China

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EU says it's already de-risking from China

The European Union has been trying to de-risk itself from China, one of its key trading partners. facts and figures show that China has already been de-risking for decades, the EU's chairwoman, Joanna Ek, said in a statement.

Jens Eskelund, the president of the European Union Chamber of Commerce in China, said on CNBC on Monday.

In recent years, Beijing has developed multiple de-risking plans like the Made in China 2025 plan, the dual circulation model and the government's self-reliance strategies.

Eskelund said he was determined to continue his work as a professor of economics at the University of California, where he will become an assistant professor of economics.

China's commerce ministry accused the EU of 'naked protectionism' after the bloc launched an investigation into Beijing's subsidies for electric vehicles. The EU's investigation could result in punitive tariffs on cars that EU officials believe are unfairly sold at a lower price, undercutting European competitors.

The commerce ministry said it would pay close attention to Europe's protectionist tendencies, adding that it will protect the legitimate rights of Chinese companies in the EV industry.

China's foreign ministry spokeswoman, Mao Ning, said Beijing is opposed to all forms of trade protectionism. She added that decoupling from China will shake up the global car industry's supply chains.

The trade between China and the eurozone accounts for about 2.5% of the euro zone's gross domestic product. The EU's trade deficit with China grew to $276.6 billion in 2022, a rise from the previous $276.6 billion in 2000. Amidst worries that Chinese retaliation over the subsidies probe may harm the EU's economic growth, economic commissioner Paolo Gentiloni said he was confident that the bloc could overcome any form of retaliation from Beijing.

Experts believe the Asian powerhouse has 'quite a lot to lose' from a trade war with the EU.