This study explores the 'de-risking' strategy announced by the European Commission (EC) within the context of economic security. Originating from the President of the European Commission and echoed by high-ranking US officials, the de-risking approach...
This study explores the 'de-risking' strategy announced by the European Commission (EC) within the context of economic security. Originating from the President of the European Commission and echoed by high-ranking US officials, the de-risking approach has also gained support in the conclusion of the G7 summit, resulting in a broader policy stance of the Western countries towards China. The EU's strategy focuses on enhancing the stability of supply chains by diminishing economic dependencies on China and diversifying supply chains, aligning with its principle of strategic autonomy.
The study brings to light the following key points: firstly, the de-risking strategy of the US towards China, as articulated by US officials, encompasses broad areas such as diplomacy, security, and technology, whereas the EU's approach involves a nuanced recalibration, specifically addressing areas posing risks to economic security. Secondly, disparities emerge in the de-risking strategies proposed by the US and the EU due to distinct policy details concerning China, indicating potential cooperation and disagreement between two Atlantic partners. Thirdly, the EU's 'partner-competitor-rival' stance towards China is increasingly fraught with contradictions, as the 'competitor-rival' dynamic encroaches on the 'partner' relationship, eliciting strong negative reactions from China towards de-risking strategies by the US and Europe. Lastly, the EU's dependence on China is expected to diminish in core industries, aligning with policy objectives but persisting in general industries within the existing trade framework.
The study suggests several implications for Korea's economic security. Firstly, a comprehensive understanding of nuanced differences in de-risking strategies between the US and Europe is essential, given the potential differences in detail. Secondly, it is crucial to evaluate the opportunistic factors in the field where supply chain realignment is occurring. Thirdly, in response to economic security initiatives by major countries affecting domestic industries, proactive measures should be discussed to mitigate the impact of external shocks and possibly facilitate possible industrial restructuring.