Beyond the Tariffs: Europe’s Real Existential Risk in the China-EU Trade Relationship

ft.com · 2026-06-01
Beyond the Tariffs: Europe’s Real Existential Risk in the China-EU Trade Relationship

Europe is currently obsessed with the influx of low-cost Chinese exports, leading to a surge of protectionist measures and anti-subsidy investigations. However, this focus on price competition is a strategic distraction that masks more severe structural vulnerabilities. As European leaders prioritize trade barriers, they are failing to adequately address the deeper risks associated with systemic dependency on Chinese rare earth elements and the potential for embedded, malicious code within critical digital infrastructure. This article argues that Europe is fighting a 20th-century trade battle while ignoring the 21st-century realities of supply chain security and cybersecurity. By focusing on tariffs rather than technological sovereignty and resource diversification, the EU risks sacrificing its long-term strategic autonomy. The author concludes that Europe must urgently pivot its focus toward securing critical mineral supply chains and ensuring the integrity of its core digital networks to navigate the complexities of the modern global economy.