Recently, on many occasions, the US President and EU leaders have been talking about a de-risking strategy. A strategy to diversify its economy and put an end to economic dependency. European Commission President, Ursula von der Leyen, introduced the term de-risking in March 2023 in describing the EU’s approach in diversifying its supply chain away from China. This de-risking strategy generally covered reducing dependencies, non-tariff measures, diversification of sources, and boosting domestic production.
Disentanglement from China’s established dominance in global supply chains, especially in critical sectors like electronics and raw materials, remains difficult. In 2022, China accounted for 70% of the world’s raw material production. China is among the US and EU’s top 3 biggest trading partners. The translation of “de-risking” itself still varied. While the EU is mainly motivated by the potential disruption in the European economy due to overdependence, the US finds itself having a more hawkish interaction with China.
Against this background, Foreign Policy Community of Indonesia is back with a Global Town Hall Series on “The US and European De-risking Strategy” to delve into the different perspectives between the Global North and Global South countries
