The EU's New Economic Security Tools and China's Countermeasure Calculus

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Commentary published on The Diplomat by Linsheng Hong, Research and Management Associate, Institute for China-Europe Studies

June 1, 2026

The core tension in EU-China economic relations is shifting from trade imbalances alone to Europe's growing political unease about the speed of China's industrial upgrading. As the EU moves from case-by-case trade defence toward broader economic security tools, China's best response is not simply retaliation, but a strategic shift from exporting to Europe toward deeper industrial embeddedness in Europe. At the same time, the EU needs to defend its industrial interests without allowing regulatory escalation to replace dialogues and negotiations over technical issues.

Please access this piece at The Diplomat via:
https://thediplomat.com/2026/06/the-eus-new-economic-security-tools-and-chinas-countermeasure-calculus/

Please note that views expressed by the author do not reflect the policies or positions of ICES. The views expressed by the author are personal and do not reflect the policies or positions of his affiliated institutions.