The EU can learn from Japan and South Korea on trading with China
31 December 2024
One consequence of Donald Trump’s reelection is that it underlines the common economic challenges facing the European Union, Japan and South Korea.
A high level of trade exposure to both Washington and Beijing has exposed deeply connected supply chains. A relative lack of natural resources has revealed the urgent requirement for more sophisticated forms of economic security, particularly in relation to imports of key materials from China. Well-established U.S. security guarantees have also left Brussels, Tokyo and Seoul uniquely vulnerable to more transactional American trade policies. As export driven economies, unpredictable U.S.-China trade relations will slow investment, reduce returns and ultimately cost growth and jobs.