New Delhi, Sep 10 (IANS): Britain has taken the lead among European countries in starting the process of breaking free from dependence on China with a diversification of trade and investment ties with other countries such as India, according to a new report.
The European Union’s heavy reliance on China for goods and raw materials creates several long-lasting issues that go beyond the displayed trade imbalance. Policymakers consistently worry that so much dependence undermines European strategic autonomy.
Europe cannot pursue an independent foreign policy on Taiwan, human rights, or trade disputes while remaining so prominently reliant on Chinese goodwill for essential inputs. Due to this existing effect, EU member states usually soften criticism of Beijing to protect and continue economic ties, according to an article in Eurasia News.
The UK’s China playbook offers a template the rest of Europe would do well to follow. India looks like the natural partner to build it around. Europe’s exposure to China remains far deeper than Britain’s in electronics, solar components, pharmaceuticals, and rare earths.
The EU still leans on Chinese supply chains in ways that leave it strategically vulnerable. Especially as Beijing has shown willingness to weaponize export controls, as seen with tungsten, states the article.
India has the scale, workforce, and growing industrial base to absorb a meaningful share of that dependency. However, the smarter move isn’t attempting a wholesale switch overnight. A more effective approach would be to begin with a small number of carefully selected sectors, the article observes.
It highlights that Europe could begin with sectors where China’s grip is strongest and where alternatives are readily available. India’s electronics assembly and components industry has grown rapidly, particularly around hubs such as Tamil Nadu and Karnataka. It could also expand its role in active pharmaceutical ingredients, building on its position as a major supplier of generic medicines.
Textiles offer another opportunity, as Gujarat and Tamil Nadu already have the manufacturing infrastructure needed to handle greater demand. Rather than trying to negotiate one EU-wide framework, individual member states could first build deeper ties with two or three Indian states.
Using those as proof-of-concept before scaling continent-wide. Much like the UK’s CETA and CPTPP approach, which built momentum gradually rather than all at once, the article points out.
