Comprehensive Brief: China-EU Overtures Intensify Global Competition, Impacting Asian Businesses
Summary
China is intensifying outreach to the EU, offering targeted market openings (e.g., Spain’s pork exports) to drive closer ties amid rising U.S. technology and investment restrictions.
EU businesses face attractive short-term gains in sectors like agribusiness, automotive parts, and consumer goods, but must navigate ongoing scrutiny on technology transfers and security concerns.
Washington’s parallel measures (e.g., CHIPS Act) and the EU’s “systemic rival” label for China create layered regulatory risks, especially in high-tech or sensitive industries.
Companies should adopt a “China+1” or “China+N” approach—diversifying supply chains and R&D to mitigate potential shocks from policy shifts.
Active engagement with policymakers in both the EU and U.S. can help shape regulations, ensure compliance, and reduce unexpected operational barriers.
Building local trust in China remains critical for anticipating sudden policy changes, but executives must balance expansion with reputational and regulatory exposure in Western markets.
Leaders should weigh China’s revenue potential against the costs of meeting increasingly complex compliance demands and geopolitical constraints, aiming for a resilient, flexible strategy.
