The Scientific Council for Government Policy advises that Europe must implement tougher trade protections to counter Chinese economic strategies.

The Dutch Scientific Council for Government Policy (WRR) has recommended that the European Union accelerate and strengthen its trade protections against China. The council, which provides long-term policy advice to the Dutch government, argues that current measures are insufficient to address the geopolitical shifts in global economic relations.

Need for stronger trade defenses

WRR chair Corien Prins stated that while EU industrial and innovation initiatives are necessary steps to compete with China and the United States, they are not enough on their own. The council emphasizes that the European Union must implement more robust trade defenses to protect its interests. Prins warned that without addressing distorted trade, Europe risks losing gains in areas such as climate, privacy, and working conditions, even while investing significant funds into domestic competitiveness.

Impact of Chinese economic strategy

The report identifies that Chinese goods are priced 30 percent lower than comparable European products. The authors attribute this price disparity to an economic strategy by the Chinese government that relies heavily on exports. Furthermore, the council notes that weak domestic demand within China is a primary factor contributing to the influx of Chinese goods into the global market.