China poses ‘risk of economic coercion’ – Belgian paper

National Bank of Belgium says trade with EU has shifted to more “strategic” goods

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European trade with China has become “increasingly unbalanced”, a new paper from the National Bank of Belgium finds.

The researchers argue that China’s “overproduction in several sectors, stimulated by generous industrial policy” has tipped the trade balance in the country’s favour. They add that if the “increasingly powerful and authoritarian China” were to flex its economic muscles, this could disrupt key supply chains and reduce access to its domestic market.

Some European industries –

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