The emergence of the People’s Republic of China (PRC) as an economic superpower presents a shared set of challenges to economic security on both sides of the Atlantic, ranging from the country’s dominance of critical mineral supply chains to the impact of PRC ‘overcapacity’ on EU and US firms and its advancement in critical future technologies. Despite some promising joint initiatives, including the establishment of the EU–US Technology and Trade Council and the Minerals Security Partnership, the US and the EU have taken divergent approaches to managing economic security risks. This divergence is particularly noticeable in how they deal with subsidies, supply chain diversification, tariffs and investment restrictions.

This policy brief identifies several areas in which the next European Commission and European Parliament should deepen transatlantic cooperation and deal with the shared economic security challenge presented by the PRC. The brief puts forward a set of policy recommendations which include coordinating strategic investments in green technology production, expanding joint dialogues, creating shared standards on issues such as data security, reviewing the case for a ‘Buy European’ requirement for access to EU subsidies and a range of special measures to protect the EU’s automotive industry.