The Economist explains

What does “de-risking” trade with China mean?

Europe wants to reduce its exposure to, but not decouple from, the country

The British prime minister, Rishi Sunak, shakes hands with his Indian counterpart, Narendra Modi, at the G7 summit in Japan
Image: Eyevine

AT THEIR SUMMIT in Hiroshima on May 20th, the leaders of the G7 group of rich democracies talked about “de-risking” their economic ties with China, but not decoupling from it. The same phrase appeared in an important speech by Ursula von der Leyen, president of the European Commision, in March. What does “de-risking” mean?

From the June 3rd 2023 edition

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