g-f(2)2864 Beyond Competition: How China's Actions Endanger European Security and Prosperity

 

genioux Fact post by Fernando Machuca and Perplexity

Introduction:

The Foreign Affairs article "China's Double Threat to Europe" by Liana Fix and Heidi Crebo-Rediker highlights the growing challenges posed by China to European security and economic prosperity. It focuses on two main threats: China's support for Russia's war in Ukraine and its industrial overcapacity, particularly in the electric vehicle (EV) sector.

genioux GK Nugget:

"China's dual strategy of supporting Russia's war effort and flooding Europe with cheap EVs poses an unprecedented threat to European security and economic stability, demanding a unified and robust response." — Fernando Machuca and Perplexity, September 8, 2024

genioux Foundational Fact:

China's actions present a significant challenge to Europe on two fronts: geopolitical security and economic stability. By providing crucial support to Russia's war machine through dual-use goods and components, China undermines European security efforts in Ukraine. Simultaneously, China's industrial overcapacity, particularly in the EV sector, threatens to decimate Europe's crucial automotive industry. These combined threats require a comprehensive and assertive European response to protect its interests and maintain its strategic autonomy.

The 10 most relevant genioux Facts:

1. China's support for Russia's war effort includes supplying about 90% of the imports Russia needs to sustain its military operations.
2. Beijing is increasingly diluting its constraint on lethal aid by providing Russia with a large quantity of dual-use goods and critical components.
3. China's industrial overcapacity, especially in the EV sector, poses a significant threat to Europe's automotive industry, which accounts for about 7% of EU GDP.
4. European response to Chinese EV imports has been moderate compared to countries like Canada and the United States.
5. Chinese EVs and hybrids already accounted for 37% of all such imports to Europe by 2023.
6. Current EU tariffs on Chinese EVs (up to 46.3%) may be insufficient to protect the European auto industry.
7. China's dominance in battery raw materials (cobalt, nickel, lithium) further challenges European auto manufacturers.
8. Europe needs to consider raising tariffs beyond 46.3% and implementing stricter measures to manage Chinese investments in the EV sector.
9. The EU could require Chinese EV companies to build battery-recycling facilities in Europe to enhance access to critical materials.
10. Europe's response to China's threats is crucial, especially given the possibility of changes in U.S. leadership and potential shifts in transatlantic relations.

Conclusion:

The article underscores the urgent need for Europe to formulate a robust and unified response to China's dual threats. It emphasizes that Europe can no longer afford a slow, incremental approach and must act decisively to protect its security interests and economic prosperity. By leveraging its market power and implementing strategic policies, Europe can counteract China's influence and maintain its strategic autonomy. The authors stress that failure to act promptly could result in Europe becoming a deindustrialized export market for Chinese goods while facing increased security threats from a resurgent Russia.

REFERENCES

The g-f GK Context

Liana Fix and Heidi Crebo-Rediker, China's Double Threat to Europe, Foreign Affairs, September 5, 2024.

ABOUT THE AUTHORS

Liana Fix is a Fellow for Europe at the Council on Foreign Relations and the author of Germany’s Role in European Russia Policy: A New German Power?

Heidi Crebo-Rediker is a Senior Fellow in the Greenberg Center for Geoeconomic Studies at the Council on Foreign Relations. She served in the Obama administration as the State Department’s first Chief Economist.

Classical Summary of the Article:

The article "China’s Double Threat to Europe" by Liana Fix and Heidi Crebo-Rediker discusses the significant challenges that China poses to European security and economic stability through its support for Russia and its aggressive industrial policies, particularly in the electric vehicle (EV) sector. As Russia continues its war in Ukraine, China's provision of dual-use goods and military support has raised alarms in Europe and the United States. The article emphasizes that China's actions are not merely competitive but strategically aimed at undermining European interests.

China's dual strategy includes supplying Russia with critical military inputs, which has allowed the Russian military to grow significantly since the invasion of Ukraine. This support includes a substantial amount of dual-use goods that are essential for sustaining Russia's military operations. Additionally, China's industrial overcapacity is flooding European markets with cheap EVs, threatening the viability of Europe's automotive industry, which is crucial for economic growth and employment.

Despite these pressing threats, the European response has been relatively muted, with limited sanctions imposed on Chinese companies. The authors argue that Europe must take decisive action to counter these threats by implementing tougher sanctions on China, increasing tariffs on Chinese imports, and enhancing its own industrial policies to protect its automotive sector. They stress the urgency for Europe to act collectively, as failure to do so could lead to significant economic and security repercussions, leaving Europe vulnerable to both Chinese economic dominance and Russian military aggression.

The article concludes by urging European leaders to adopt a proactive stance against China's dual threats, emphasizing the need for a unified response that prioritizes European security and economic interests in the face of a rapidly changing geopolitical landscape.

Liana Fix

Liana Fix is a distinguished historian and political scientist, currently serving as a Fellow for Europe at the Council on Foreign Relations (CFR). She is renowned for her expertise in German and European foreign and security policy, European security, transatlantic relations, Russia, Eastern Europe, and European China policy¹.

Early Life and Education

Liana Fix holds a Master of Science in Theory and History of International Relations from the London School of Economics and Political Science, and a PhD in Political Science from Justus Liebig University Giessen¹². Her academic background has provided her with a solid foundation for her career in international affairs and policy analysis.

Career and Achievements

Before joining CFR, Liana served as the Program Director for International Affairs at Körber-Stiftung in Berlin. She has also been a resident fellow at the German Marshall Fund in Washington, DC, and a DAAD/AICGS fellow at the American Institute for Contemporary German Studies¹. From 2018 to 2019, she was a fellow for global governance futures at the Robert Bosch Foundation Multilateral Dialogues¹.

Liana has contributed extensively to academic journals, policy papers, and international media. She is also an adjunct faculty member at Georgetown University in the Center for German and European Studies and the Center for Eurasian, Russian, and East European Studies¹.

Publications

Liana Fix is the author of the book "Germany’s Role in European Russia Policy: A New German Power?" published by Palgrave Macmillan in 2021⁴. The book provides a comprehensive analysis of Germany's influence on EU-Russia relations, particularly since the Eastern enlargement of the EU in 2004⁴.

Vision and Impact

Liana Fix's work is characterized by a deep understanding of European and international affairs. Her research and insights have significantly contributed to the discourse on European security and foreign policy. Through her roles at CFR and other institutions, she continues to influence policy and foster a better understanding of the complexities of international relations.

¹: [Council on Foreign Relations](https://www.cfr.org/expert/liana-fix)

²: [Wilson Center](https://www.wilsoncenter.org/person/liana-fix)

⁴: [SpringerLink](https://link.springer.com/book/10.1007/978-3-030-68226-2)

Source: Conversation with Copilot, 9/8/2024

(1) Liana Fix - Council on Foreign Relations. https://www.cfr.org/expert/liana-fix.

(2) Liana Fix - Wilson Center. https://www.wilsoncenter.org/person/liana-fix.

(3) Germany’s Role in European Russia Policy: A New German Power .... https://link.springer.com/book/10.1007/978-3-030-68226-2.

(4) Dr Liana Fix - Global Diplomacy Lab. https://www.global-diplomacy-lab.org/members/liana-fix/.

(5) Germany's role in European Russia policy: a new German power?. https://academic.oup.com/ia/article-abstract/97/6/2007/6412441.

(6) Germany’s Role in European Russia Policy : A New German Power?. https://bing.com/search?q=Germany%e2%80%99s+Role+in+European+Russia+Policy%3a+A+New+German+Power%3f.

(7) Germany’s Role in European Russia Policy : A New German Power?. https://books.google.com/books/about/Germany_s_Role_in_European_Russia_Policy.html?id=SyMrEAAAQBAJ.

(8) undefined. https://doi.org/10.1093/ia/iiab157.

(9) undefined. https://bing.com/search?q=.

Heidi Crebo-Rediker

Heidi Crebo-Rediker is a prominent figure in the field of international political economy, currently serving as a Senior Fellow in the Greenberg Center for Geoeconomic Studies at the Council on Foreign Relations (CFR). Her work focuses on U.S. economic competitiveness, economic security, and international finance.

Early Life and Education

Heidi holds a Bachelor of Arts from Dartmouth College and a Master of Science from the London School of Economics and Political Science¹². Her academic background has provided her with a strong foundation in economics and international relations.

Career and Achievements

Heidi has had a distinguished career in both the public and private sectors. She served as the State Department’s first Chief Economist, appointed by Secretary Hillary Clinton. In this role, she provided strategic advice on the integration of economics and finance with geopolitics, helping to craft and launch the "Economic Statecraft" initiative¹². 

Before her tenure at the State Department, Heidi was the Chief of International Finance and Economics for the Senate Committee on Foreign Relations. She also spent nearly two decades in Europe as a senior investment banker, managing businesses in sovereign, supranational, and public-sector banking, as well as European and emerging markets debt capital markets¹².

Heidi has been recognized for her contributions to the field, being named one of the "Top 25 Women in Business" by The Wall Street Journal Europe². She has also served on the Biden/Harris Treasury Agency Review Transition team as lead on International Affairs through January 2021².

Vision and Impact

Heidi Crebo-Rediker's work is characterized by a deep understanding of the intersection between economics and geopolitics. Through her roles at CFR and other institutions, she continues to influence policy and foster a better understanding of global economic dynamics. Her contributions to the field have made her a respected voice in international political economy.

¹: [Council on Foreign Relations](https://www.cfr.org/expert/heidi-crebo-rediker)

²: [International Capital Strategies](https://www.internationalcapitalstrategies.com/heidi-crebo-rediker)

Source: Conversation with Copilot, 9/8/2024

(1) Heidi Crebo-Rediker - Council on Foreign Relations. https://www.cfr.org/expert/heidi-crebo-rediker.

(2) Heidi Crebo-Rediker - International Capital Strategies. https://www.internationalcapitalstrategies.com/heidi-crebo-rediker.

(3) Heidi Crebo-Rediker – Keynote Speaker - London Speaker Bureau. https://londonspeakerbureau.com/speaker-profile/heidi-crebo-rediker/.

(4) Heidi Crebo-Rediker — The Common Good. https://www.thecommongoodus.org/past-speakers/heidi-crebo-rediker.

(5) Greenberg Center for Geoeconomic Studies - Council on Foreign Relations. https://www.cfr.org/programs/greenberg-center-geoeconomic-studies.

(6) About the Greenberg Center for Geoeconomic Studies. https://www.cfr.org/about-greenberg-center-geoeconomic-studies.

(7) Matthew P. Goodman - Council on Foreign Relations. https://www.cfr.org/expert/matthew-p-goodman.

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REFERENCES

“genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)2864, Fernando Machuca and Perplexity, September 8, 2024, Genioux.com Corporation.

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