Beyond Investment Screening

Expanding Europe’s Toolbox to Address Economic Risks from Chinese State Capitalism

The European Union (EU) and China have entered a new stage in their relationship. China now appears as a “systemic competitor” or even “systemic rival” in assessments by major European business federations and EU institutions. Underpinning this reassessment is a recognition that core elements of China’s economic policy continue to be fundamentally different from market-oriented principles and practices in the OECD world. This new report by the Rhodium Group and Mercator Institute for China Studies takes stock of Europe’s toolkit for responding to market distortions spilling over from growing Chinese investment and other commercial linkages with Europe.